NZ GOVT ESTABLISHES NEW REAL ESTATE OVERSIGHT BODY

Date Added: Sep 6, 2008

Author: Manager Real Estates Directory

Category: Australia real estates: Real Estates in New Zealand

The New Zealand government has passed through new legislation, approving the establishment of an independent body to oversee the country’s real estate sector.

Voting 65 to 53 in favour of the Real Estate Bill, MPs revealed that the new body will have an independent authority to investigate domestic and international agents operating in the sector and will handle all civil complaints raised against brokers.

The Bill stated that more needs to be done to protect the interests of consumers in real estate transactions by raising industry standards, improving licensing requirements and licensing procedures, providing mandatory disclosure obligations, and providing accountability through an independent, transparent and effective disciplinary process.

A disciplinary tribunal will also be established to deal with more serious cases.

The Real Estate Bill was strongly opposed by the Real Estate Insitute of New Zealand (REINZ) which was effectively rendered impotent earlier this year.

The government stripped it of its self-regulatory powers after Clayton Cosgrove, associate justice minister, said the industry had failed to deal with complaints about rogue agents in a transparent way and had been a “closed shop” for too long.

“Good honest agents also need an independent body that will review complaints efficiently, fairly and objectively. Currently that does not exist,” Cosgrove said in April.

Property investment specialist, New Zealand Property Solutions, believes this will not have a drastic affect on the industry, but help strengthen protection for overseas agents selling in the country.

“Agents can now face a loss of licence and a $NZ50,000 fine if they are found to be acting unscrupulously, previously the maximum fine was $700,” said Lyndon Fairbairn, the firm’s director. “A lot of overseas agents forget, that by the letter of the law, they need to be registered in New Zealand, or aligned with an agency, to sell property in the country. Without this they are not covered by the law should an agent or developer not deliver on commission payments. While this is rare, I strongly advise any European agent to make sure they partner themselves with a reputable firm in the country before referring a client.”

Source: www.opp.org.uk