5 September 2008 | New Real Estate Agents Act
The new Act replaces the Real Estate Agents Act 1976, and introduces a new regulatory framework for the real estate industry that aims to promote and 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.
The Real Estate Institute will be stripped of its powers over the country's 18,000 agents and a new, independent Real Estate Agents Authority will be set, reports the NZPA.The new Authority will oversee licensing, set industry standards, set fees and levies, and deal with complaints and disciplinary action against agents.
Associate Justice Minister Clayton Cosgrove introduced the bill after numerous buyers and sellers complained about being ripped off by agents, and the lengthy and often ineffective in-house procedure for dealing with those who broke the rules.
Mr Cosgrove went head to head with the institute and was criticised for talking about sharks and rogues in the industry.
"It will not cost consumers anything to lodge a complaint and they will not be required to hire lawyers because the authority will represent their case if it is referred to the disciplinary tribunal" said Mr Cosgrove
For the first time there would be consumer redress, including compensation of up to $100,000.
"The most important people in this whole deal are the honest real estate agents and the consumers," he said during the bill's third reading debate.