Real estate agent rule changes welcomed

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

Relevant offers

Money

What happens to your money if your bank fails? Flunked NCEA? Students told there are other paths to a dream career Lawyers circling Apple's 'error 53' iPhone killer Two people arrested in connection with scam targeting the elderly in Christchurch Did this rare Ferrari break the world auction price record? Budget Buster: How much do you earn? Beauty vlogging entrepreneurs earning big bucks from home Financial adviser Laetitia Peterson identifies the money personalities of lawyers Richie McCaw thrills Retirement Commissioner with challenge to Kiwis All Blacks star Richie McCaw says it's time for Kiwis to step up personal finance game

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