Real estate agent rule changes welcomed

CATHERINE HARRIS
Last updated 17:42 13/12/2012

Relevant offers

Money

One of the world's largest boombox collections goes to auction in Dunedin KiwiSaver market becomes more concentrated, but returns remain positive Businessman perplexed by 25c Inland Revenue bill Ray White signs deal with Lianjia as it launches into China House prices could fall 11 per cent by late 2019, as building catches up: Infometrics Swamp kauri case in Auckland High Court Rich people move to New Zealand for safety Reserve Bank mandate no longer cutting it - Labour Borrowers told income makes more difference than deposit A Lotto First Division win, a house fire, and an engagement - all on her birthday

Professional conduct rules for real estate agents have been tightened to ensure consumers get adequate legal advice and understand what benefits their agent might receive.

The industry's regulator, the Real Estate Agents Authority, said the changes were needed to protect consumers and to raise the bar for the country's 12,500 agents.

Changes include: 

* Having to explain to clients when an agency agreement ends

* Recommending to all parties they get legal advice before signing agency or sale and purchase agreements

* Explaining to would-be clients how agents benefit from the different ways of selling a property.

A new rule has also been introduced to ensure sellers do not pay two commissions. 

It requires agencies whose contract is cancelled to provide clients with the names of customers for whom it would claim commission, should they return to the sale process.

Authority chief executive Kevin Lampen-Smith said the new code of conduct was "positive for both the industry and consumers.

"The new code of conduct, along with continuing education, helps ensure a professional industry and informed buyers and sellers."

The changes come into effect on April 8 next year.

Ad Feedback

- BusinessDay.co.nz

Comments

Special offers

Featured Promotions

Sponsored Content