NZ Real Estate Branch Manager cheat sheet

Three licence classes under the Real Estate Agents Act 2008: agent (agency), branch manager, and salesperson. A branch manager licence is a distinct class, not a variant of salesperson.

Branch manager licence requires: at least 3 years of experience as a licensed salesperson or agent within the preceding 10 years, completion of the NZ Certificate in Real Estate (Branch Manager) Level 5, and a satisfactory criminal history check.

A branch manager must hold, or be treated as holding, a current licence and must be engaged by an agent (the licensee). A branch manager cannot operate independently of an agency.

A branch manager may supervise salespeople and may also carry out salesperson work, but must not act as an agent (i.e., cannot take listings or commission in their own right) unless separately licensed as an agent.

Registration with the Real Estate Authority (REA) precedes licensing; the licence is issued by the Registrar. Annual continuing education (verification) must be completed to maintain the licence.

A person whose licence has been cancelled or suspended cannot act as a branch manager; employing or permitting an unlicensed person to act is an offence under the Act.

Licence classes affect what work may be done: an agent licence permits running an agency and employing licensees; a branch manager licence permits managing a branch; a salesperson licence permits only sales work under supervision.

Applications for a branch manager licence are made to the Registrar through the REA; the Registrar may refuse, suspend, or cancel a licence, and may impose conditions.

Every agency must have at least one branch manager, and every branch must be managed by a licensed branch manager (or the agent) who is responsible for day-to-day supervision.

Supervision includes ensuring salespeople comply with the Act, the Code, and the agency's written policies; the branch manager must have systems for monitoring listings, trust account dealings, and advertising.

A branch manager must ensure salespeople are properly supervised, trained, and that their work is checked; supervision must be documented and proportionate to the experience of each salesperson.

The branch manager is responsible for ensuring that no unlicensed person carries out licensed work, and that all salespeople hold current licences and complete required continuing education.

Supervision obligations extend to the conduct of salespeople outside the office, including advertising, disclosures, and dealings with clients and other licensees.

The branch manager must maintain a register of licensees in the branch, record supervision arrangements, and ensure the agency's complaints and record-keeping procedures are followed.

Failure to properly supervise is itself a ground for disciplinary action against the branch manager, even where the salesperson's breach is the immediate cause of complaint.

Supervision must include checking that client care information, agency agreements, and disclosure documents are provided before work begins, and that records are retained for the required period.

The Code of Conduct and Client Care Rules 2012 (the Code) apply to all licensees; the Code is made under the Real Estate Agents Act 2008 and enforced through the disciplinary process.

Core duties: act in the client's best interests, provide information in a timely manner, act competently, and disclose conflicts of interest.

A licensee must provide a client with the prescribed client care information (including the agency agreement, fees, and complaints process) before entering into an agency agreement.

Licensees must not mislead or deceive, must not make false or misleading statements about a property, and must disclose known defects or matters that would affect a purchaser's decision.

A licensee must not disclose confidential client information without consent, and must not use information gained in the course of work for personal benefit.

Licensees must not engage in conduct that is disgraceful, seriously incompetent, or that brings the industry into disrepute; misconduct can be established even without a specific rule breach.

Where a licensee has a conflict of interest (e.g., buying the client's property or referring to a related business), the conflict must be disclosed in writing and the client's informed consent obtained.

The Code requires fair and transparent dealing: no pressure selling, no undisclosed commissions or referral fees, and clear disclosure of any rebates received.

Client money (deposits, rent, proceeds) must be paid into a trust account operated by the agency; it must not be mixed with the agency's own funds.

Trust accounts must be audited annually by an approved auditor, and the audit report must be provided to the REA within the required timeframe.

A branch manager must ensure trust account records are accurate, reconciled regularly, and that receipts are issued for all money received.

Withdrawals from a trust account must be authorised and supported by documentation; commission and expenses may only be withdrawn when properly earned and agreed.

Trust account funds must be held in a bank account in the agency's name designated as a trust account; the agency must keep separate ledgers for each client.

Any deficiency or irregularity in a trust account must be reported; the branch manager is accountable for ensuring the agency's trust account obligations are met.

Records of trust account transactions must be retained for the period required by the Act and regulations, and must be available for inspection by the Registrar or auditor.

The branch manager must ensure salespeople understand that they cannot receive client money personally; all money must go through the agency's trust account.

Advertising must be accurate, not misleading, and must not create a false impression about the property, its price, or its features.

A licensee must disclose to a purchaser any known defects or matters that would materially affect the purchaser's decision, including known weathertightness or structural issues.

Estimated sale price ranges must be based on reasonable grounds and must not be used to mislead; advertising must state whether a price is a guide or a fixed price.

Agency agreements must be in writing and must specify the fees, the term, and the circumstances in which commission is payable.

Disclosure of conflicts of interest, referral fees, and any beneficial interest a licensee has in a property or transaction is mandatory before the client commits.

Marketing must comply with the Fair Trading Act 1986 and the Code; unsubstantiated claims and omitted material facts can amount to misleading conduct.

The branch manager must have a process to review advertising and disclosure materials before publication to ensure compliance.

Records of marketing claims and disclosures must be retained to support the agency's position in a complaint or disciplinary proceeding.

Complaints about a licensee's conduct are made to the Real Estate Authority (REA), which may refer them to the Real Estate Agents Disciplinary Tribunal (READT).

The REA can resolve complaints through education or referral; serious matters go to the Tribunal, which can impose penalties including fines, suspension, or cancellation of licence.

The disciplinary process includes investigation, a hearing, and a right of appeal to the High Court on questions of law.

A branch manager must have an internal complaints procedure and must ensure complaints are handled fairly and promptly before escalation.

Grounds for discipline include unsatisfactory conduct, misconduct, and breaches of the Code; the Tribunal can order compensation to a complainant.

Licensees must cooperate with REA investigations; failure to do so can itself be a disciplinary matter.

Penalties range from censure and fines to suspension or cancellation; the Tribunal may also impose conditions on a licence.

The branch manager is responsible for ensuring the agency's records and responses to complaints are accurate and timely, and for notifying the REA of relevant matters.