Real estate agency work and the regulatory framework
This domain tests whether you can place everyday agency activity inside the Real Estate Agents Act 2008, the licensing regime administered by the Real Estate Authority (REA), and the disciplinary process. Expect questions on who may do agency work, what must be disclosed, and where complaints go.
Core rules
- The Act defines real estate agency work broadly: work in trade to bring about a sale, purchase, lease, or other disposal or acquisition of land or a business, including marketing, showing buyers through, negotiating, and advising. Only licensed people may do it. Unlicensed assistants may do administrative support, but must not qualify buyers, negotiate, or hold themselves out as agents.
- Licensing classes are salesperson, branch manager, and agent. A salesperson must work under a branch manager or licensed agent, and an agency business must have a licensed agent in charge.
- The REA administers licensing and consumer information. Complaints can lead to REA investigation and disciplinary proceedings. Commission is negotiable and is not set by the REA.
Worked example
A vendor's friend answers enquiries, quotes a price, and shows buyers through while the licensed salesperson is away. That is agency work. The friend is unlicensed, so the salesperson and branch manager must stop it. The compliant fix is admin-only support, not coaching the friend to negotiate.
Traps
- Treating the REA as a commission-setting regulator.
- Letting unlicensed staff negotiate because they are unpaid or called assistants.
- Forgetting that social media posts and online enquiries can be agency work or advertising.