Fee set for tittle-tattle complaints

Agents are told to think twice before they complain to the Commerce Commission. ANNE GIBSON reports.

Real estate agents should take their problems with rival agents to their own body, rather than complaining to the Commerce Commission, says Real Estate Institute professional standards manager Gordon Meyer.

He says the benefit for members is that the internal process is more immediate and less time consuming.

"Our rules are designed to ensure proper standards are maintained in the interests of both fellow members and the public."

Writing in the institute's magazine he says that agents who have not heeded warnings about compliance with the Fair Trading Act are giving the business a bad name.

Because some agents have been complaining about other agents in a "vexatious" way, the institute has set a $200 fee for agents who engage in tittle-tattle against their rivals.

Mr Meyer said the REINZ council had resolved at its last meeting that the fee would be charged by regional managers where it was considered the complaints were of a vexatious nature.

The number of public complaints against agents by rose last year, but sales activity had also been much higher.

"Members should realise that many complaints to the commission appear to come from other members, rather than the public."

There had been extensive efforts made by the commission and the institute to educate members on the Fair Trading Act, but these appeared to have fallen on deaf ears.

"The sad thing is, all along there has been the means within the institute to do something about these complaints.

"Our code of ethics and rules of practice are sufficiently robust to cope with any complaint alleging an agent's or salesperson's actions are misleading, whether it is a representation in an advertisement or made verbally.

"Hopefully, any member contemplating complaining to the commission will now direct the complaint to the institute."

Last year the Commerce Commission declared a crackdown on agents, saying it would prosecute those who flouted the Fair Trading Act.

The commission cannot impose penalties on agents and must prosecute them in court, which, Mr Meyer said, tied up "considerable resources".

In December 2000, the Orewa Property Shop, trading as The Professionals, was convicted in the North Shore District Court of breaching the Fair Trading Act in respect of an advertisement.

Soon after, a rival real estate agency, Olsen Everson, had charges laid against it over an advertisement for a Hibiscus Coast property.