Real estate agent rule changes welcomed

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

Relevant offers

Money

Loan companies banned over unreasonable fees NZ cities prepare for the dollars and excitement of another Lions Tour To tip or not to tip, that isn't the question How an 'average guy' can save for a comfortable retirement To tip or not to tip? An American in New Zealand weighs in Five fictional families show how different Kiwis save, and how they can save better To start saving, you first need to know everything about what you're spending We've been playing Monopoly wrong - it's a protest against the rich One in seven house fires start in garages, AA Insurance says There has been a surge in the number of people switching power providers

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