NZ Real Estate Agent (L6) flashcards

31 cards. Read the term and the definition here. The deck at the top of this page is optional.

Real Estate Authority

The Crown entity that administers licensing, publishes the Code and guidance, and receives complaints about licensees under the Real Estate Agents Act 2008.

Complaints Assessment Committee

A committee that investigates complaints about licensees and may dismiss them, refer them to the Tribunal, or impose orders such as censure, fines or conditions.

Licence classes

Salesperson, branch manager and agent. Only an agent licence holder may carry on business or manage a branch, and salespersons must be supervised.

Unlicensed assistant limits

An unlicensed person may perform administrative tasks but must not negotiate, advise on price, or sign agency documents on behalf of a client.

Code standard 6.1

A licensee must not mislead a customer or withhold information that a customer needs to make an informed decision about the transaction.

Confidentiality duration

The duty of confidentiality owed to a client continues after the agency agreement ends and is reinforced by the Privacy Act 2020 for personal information.

Conflict of interest disclosure

A licensee must disclose in writing any personal interest in a transaction, referral fee, or relationship that could influence their advice before the client commits.

Client's best interests

Code standard 9.1 requires a licensee to act in the client's best interests within the law, while still dealing honestly with the other party.

Sole agency maximum term

A sole agency agreement cannot exceed 90 days, and the client may cancel it earlier by written notice to the agent.

Agency agreement essentials

The written agreement must state the commission, expiry date, cancellation rights, and the client must receive the approved guide before signing.

Commission entitlement

Commission is payable only when a valid written agency agreement exists and the event specified in it, such as an unconditional sale, has occurred.

Dual agency disclosure

Where the licensee acts for both buyer and seller, or has a buyer's agency agreement, both roles and the fees must be disclosed in writing.

Misleading advertising

Advertisements must be truthful and must not understate price or misrepresent the property; misleading conduct can also breach the Fair Trading Act 1986.

Advertising authority

A licensee must obtain the seller's written authority before marketing a property and must not advertise a property subject to another agent's exclusive agency.

Marketing cost disclosure

Marketing expenses must be agreed in writing with the seller, accounted for, and unused amounts refunded where the agency agreement requires it.

Price guide accuracy

Any advertised price or guide must reflect the seller's genuine expectations and must not be deliberately understated to attract buyer enquiry.

Auction without reserve

Unless a reserve is set, the property is offered for sale without reserve and the auctioneer must accept the highest genuine bid.

Vendor bid announcement

A bid made on the seller's behalf must be clearly announced by the auctioneer and is not treated as a genuine buyer bid.

Pre-auction offer disclosure

A pre-auction offer must be disclosed to all registered bidders and the auction brought forward so all parties can participate.

Multi-offer notification

When more than one offer is being presented, the agent must tell all parties in writing that a multi-offer situation exists.

Tender process

Written offers are submitted by a closing date; the seller may accept, reject or negotiate with any tender and need not accept the highest.

Auction unconditional

An auction sale is unconditional on the fall of the hammer, so buyers should obtain legal advice, a builder's report and a LIM beforehand.

Deposit handling

A deposit is usually 10 percent and must be paid into the agent's trust account and held until settlement or as the agreement directs.

Trust account rule

Client money such as deposits and rents must be paid into a trust account and must never be mixed with the agent's own operating funds.

Trust account audit

The trust account must be audited annually by an approved auditor, with the report supplied to the Real Estate Authority.

Trust account reconciliation

The agent must reconcile the trust account regularly, usually monthly, so that ledger balances agree with the bank statement.

Record retention period

Trust account records, receipts and related documents must be kept for at least six years and be available for audit and inspection.

Agent supervision duty

An agent must supervise salespersons in the business, ensure they are licensed and trained, and maintain complaints and compliance policies.

Branch manager role

A branch manager holds an agent licence and is responsible for day-to-day supervision of the branch's agency work and trust account compliance.

Commission from trust

Commission may be withdrawn from the trust account only once the agent is entitled to it under the agency agreement and the triggering event has occurred.

Trust deficiency reporting

Any trust account deficiency must be reported to the Real Estate Authority; misappropriation is a disciplinary offence and may also be a crime.