Tougher fines for rogue agents

Agents who break the new real estate rules will face fines of up to $100,000 from tomorrow - a major increase from the current level.

Under the previous act that dates back to 1976, the maximum fine for any transgression was $750.

But with the Real Estate Agents Act 2008, an individual agent could be fined up to $10,000, and a company up to $20,000, by a complaints assessment committee established by the new Real Estate Agents Authority.

Steeper fines of up to $15,000 for an individual and $30,000 for a company can be imposed on more serious issues by the Real Estate Agents Disciplinary Tribunal.

And in addition, the tribunal has the power to order a real estate agent to pay compensation of up to $100,000 for actual loss to a complainant.

The reference point for this potential disciplinary action is a set of rules developed by the Authority, called the Real Estate Agents Act (Professional Conduct and Client Care) Rules.

These rules have been created in consultation with the industry.

"The rules provide clear expectations on professional and ethical conduct by all agents, branch managers and sales persons when dealing with consumers," authority chairwoman Kristy McDonald QC said.

"They set the standard expected from the industry, and they provide a reference point for discipline."

Ms McDonald said the code included standards of professional competence and conduct, such as a requirement to act in good faith and deal fairly with all parties, and it detailed the expectation that those holding a real estate licence would act in the best interests of consumers.

The authority aimed to promote and protect the interests of consumers, and the code gave the industry a benchmark for performance, she said.

- © Fairfax NZ News