NZ Real Estate Branch Manager flashcards

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

Branch manager licence class

A distinct licence class under the Real Estate Agents Act 2008 that authorises a person to manage a branch of an agency and supervise salespeople, separate from the agent and salesperson classes.

Experience requirement

A branch manager applicant must have at least three years' experience as a licensed salesperson or agent within the preceding ten years, verified through the registration and licensing process.

Qualification requirement

Branch manager applicants must complete the NZ Certificate in Real Estate (Branch Manager) Level 5, which covers supervision, trust accounts, and compliance obligations under the Act.

Registrar's powers

The Registrar may refuse, suspend, or cancel a licence and impose conditions; a person whose licence is cancelled or suspended cannot act as a branch manager.

Agent licence scope

An agent licence permits running an agency, employing licensees, and taking listings and commission in the agency's own right, which a branch manager licence alone does not permit.

Salesperson supervision limit

A salesperson licence permits only sales work under supervision; a salesperson cannot act as a branch manager or operate independently of an agency.

Continuing education

Licensees must complete annual continuing education and verification requirements to maintain their licence; failure can lead to suspension or cancellation by the Registrar.

Unlicensed work offence

Employing or permitting an unlicensed person to carry out licensed real estate work is an offence under the Act and a disciplinary risk for the supervising branch manager.

Branch supervision duty

Every branch must be managed by a licensed branch manager or the agent, who is responsible for day-to-day supervision, training, and compliance monitoring of salespeople.

Documented supervision systems

Supervision must be documented and proportionate to each salesperson's experience, including checks on listings, advertising, trust account dealings, and client care information.

Supervision of advertising

The branch manager must ensure salespeople's advertising and disclosures are accurate and compliant before publication, including price representations and property defect disclosures.

Supervision liability

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

Licensee register

The branch manager must maintain a register of licensees in the branch and record supervision arrangements, ensuring all salespeople hold current licences and meet education requirements.

Off-site conduct supervision

Supervision extends to salespeople's conduct outside the office, including client dealings, disclosures, and interactions with other licensees and the public.

Client care information

Before an agency agreement is signed, the licensee must provide prescribed client care information covering the agreement, fees, and the complaints process.

Best interests duty

The Code requires licensees to act in the client's best interests, provide timely information, act competently, and disclose conflicts of interest.

Misleading conduct prohibition

Licensees must not mislead or deceive clients or customers, must not make false statements about a property, and must disclose known defects affecting a purchaser's decision.

Conflict of interest disclosure

Where a licensee has a personal or financial interest in a transaction, the conflict must be disclosed in writing and the client's informed consent obtained before proceeding.

Confidentiality duty

A licensee must not disclose confidential client information without consent and must not use information gained through work for personal benefit.

Disgraceful conduct ground

Conduct that is disgraceful, seriously incompetent, or brings the industry into disrepute can establish misconduct even without a specific rule breach.

Referral fee disclosure

Undisclosed commissions, rebates, or referral fees are prohibited; any such benefit must be clearly disclosed to the client under the Code.

Trust account separation

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

Annual trust audit

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

Trust account reconciliation

The branch manager must ensure trust account records are reconciled regularly, receipts are issued for all money received, and separate ledgers are kept for each client.

Authorised withdrawals

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

Deficiency reporting

Any deficiency or irregularity in a trust account must be reported, and the branch manager is accountable for the agency meeting its trust account obligations.

Accurate advertising rule

Advertising must be accurate and not misleading, must not create a false impression about price or features, and must state whether a price is a guide.

Defect disclosure duty

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

Written agency agreement

An agency agreement must be in writing and specify the fees, term, and circumstances in which commission is payable before the client is bound.

Fair Trading Act overlay

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

REA complaints pathway

Complaints about licensee conduct are made to the Real Estate Authority, which may resolve them through education or refer serious matters to the Disciplinary Tribunal.

Tribunal penalties

The Real Estate Agents Disciplinary Tribunal can impose censure, fines, suspension, cancellation, conditions, and compensation orders against licensees found to have breached obligations.