NZ Real Estate Agent (L6) key terms

The independent Crown entity that regulates licensed real estate professionals in New Zealand, issues licences, publishes the Code of Conduct, and handles complaints and disciplinary matters alongside the Real Estate Agents Disciplinary Tribunal.

The set of professional standards, made under the Real Estate Agents Act 2008, that every licensee must follow, covering honest dealing, client care, disclosure of conflicts, and duties when handling money.

The high legal standard requiring an agent to act in the client's best interests ahead of their own, including loyalty, good faith, avoiding secret profits, and disclosing anything that could influence the client's decisions.

A situation where an agent's personal, financial, or family interest could improperly influence how they act for a client, which must be disclosed promptly and managed, or the engagement declined.

The duty not to reveal a client's private information, such as their reason for selling, financial position, or acceptable price, to other parties without consent, except where the law requires disclosure.

A person holding a salesperson's licence under the Real Estate Agents Act 2008, who may undertake agency work only under the supervision of a licensed agent and cannot operate independently.

A salesperson who also holds a branch manager licence and is responsible for supervising the day-to-day agency work of salespeople in a branch, reporting to the licensed agent.

The highest class of real estate licence in New Zealand, allowing the holder to own or manage an agency, supervise salespeople, and take legal responsibility for the agency's trust account and compliance obligations.

The written contract between a client and an agency that authorises the agent to act, sets out the commission, term, type of agency, and the disclosures the client must receive before signing.

An agency agreement giving one agency the exclusive right to market and sell the property for the agreed term, so commission is payable even if the client finds the buyer themselves during that period.

An agency agreement where the client may appoint more than one agency, and commission is payable only to the agency that introduces the buyer who completes the sale.

The fee an agency earns for successfully completing the agency work, usually calculated as a percentage of the sale price plus GST, and payable only when the agreement says it is due.

The obligation to give clients and customers accurate, timely information they need, including known defects, conflicts of interest, commission details, and the limits of the agent's authority.

Information a seller must provide about the property, such as known defects, permits, or leaky-building issues, so buyers can make an informed decision; agents must not help conceal material facts.

A false or misleading statement of fact, made verbally or in advertising, that induces someone to enter a contract; it can lead to disciplinary action and civil liability for the agent and agency.

Consumer protection law that prohibits misleading or deceptive conduct in trade, including property advertising and agent statements, and applies alongside the Real Estate Agents Act 2008.

Any marketing of a property or agency, which must be accurate, not misleading, identify the agency, and have the vendor's approval; claims about price, views, or features must be verifiable.

The documented strategy agreed with the vendor covering methods, channels, budget, timing, and how results will be reported, forming part of the agency's service obligations.

The standard-form contract recording the terms of a property sale, including price, deposit, settlement date, conditions, and chattels; the agent usually prepares it for the parties to sign.

A contractual requirement that must be satisfied before the sale becomes unconditional, such as finance, a building report, a LIM report, or a due diligence clause.

The status of a sale once every condition has been satisfied or waived, making the contract binding and the deposit generally non-refundable if the buyer later fails to settle.

Money paid by the buyer on signing, usually held in the agency's trust account and released to the vendor on confirmation or settlement as the agreement specifies.

The date on which ownership transfers and the balance of the purchase price is paid; the agent must diarise it and ensure deposit release instructions are followed correctly.

A Land Information Memorandum issued by the local council summarising known property information such as consents, hazards, and rates; buyers often make a sale conditional on reviewing it.

The buyer's investigation of the property and its legal, physical, and financial position, often protected by a due diligence condition allowing cancellation if the findings are unsatisfactory.

A public sale method where buyers bid openly and the highest bid at or above reserve wins; the sale is usually unconditional, so bidders must complete checks before bidding.

The confidential minimum price the vendor will accept at auction, set in writing before bidding begins; the property cannot be sold below it without the vendor's later agreement.

A bid made on the vendor's behalf, permitted only if announced clearly by the auctioneer, and never above the reserve; it must be disclosed to avoid misleading other bidders.

The outcome when bidding at auction fails to reach the reserve, so the property is not sold and the vendor may negotiate with interested bidders afterwards.

A sale method where buyers submit written offers by a set closing date, usually without seeing competitors' offers; the vendor may accept, reject, or negotiate with any tenderer.

A sale method where offers must be submitted in writing by a stated date and time, with the vendor free to sell before that date if an acceptable pre-emptive offer is made.

A situation where more than one buyer wants the property at once; the agent must present all offers promptly and fairly, keep them confidential, and obtain the vendor's written instructions on how to proceed.

A bank account, audited and operated under strict rules, where the agency holds client money such as deposits and rent; the money never belongs to the agency and must be paid out only as authorised.

The regular independent examination of an agency's trust account and records, required under the Real Estate Agents Act 2008, to confirm client money is complete, accurate, and properly accounted for.

The licensed agent's duty to actively oversee salespeople, including checking their work, ensuring compliance, and being satisfied they are competent and properly trained.

The documented process every agency must have for receiving and resolving client complaints internally before, or alongside, any complaint to the Real Estate Authority.

The independent body that hears disciplinary charges against licensees referred by the Real Estate Authority and can impose penalties such as fines, suspension, or cancellation of licence.

Goods and Services Tax added to commission and fees; agency agreements must state whether quoted amounts include GST, and trust account records must separately track it.