NZ Real Estate Branch Manager key terms

A licensed salesperson or licensee appointed to supervise the real estate business of an agency branch, responsible for day-to-day management, compliance and oversight of the licensees working there.

The individual licensee designated to control and supervise the conduct of the agency's real estate business, whose appointment must be notified to the Authority and who carries personal accountability for compliance.

A licence held by a company, partnership or sole trader to carry on real estate agency work; the entity must have at least one licensee in charge supervising its operations.

The entry-level individual licence permitting a person to carry out real estate agency work only under the supervision of an agent or branch manager; it cannot be held independently.

An individual licence class authorising the holder to supervise salespersons and manage a branch, requiring demonstrated experience and competence beyond the salesperson level.

The statutory test applied by the Authority when deciding licence applications, assessing honesty, financial integrity, criminal history and professional conduct to protect consumers.

A statutory bar preventing a person from holding a licence, for example because of a serious criminal conviction, insolvency, or a prior disciplinary cancellation within a specified period.

The obligation to inform the Authority when a licensee is appointed to, or ceases to hold, a position as branch manager or licensee in charge, within the prescribed timeframe.

The public register maintained by the Authority recording licensed individuals and entities, their licence class, status and any conditions or disciplinary findings.

Restrictions or requirements imposed on a licence by the Authority, such as supervision levels, restricted activities or completion of further training, which the licensee must comply with.

Mandatory ongoing professional development that licensees must complete each year to maintain competence, covering topics such as law changes, ethics and trust accounting.

The active oversight a branch manager or agent must exercise over salespersons, including monitoring work, reviewing records, providing guidance and ensuring compliance with the Act and rules.

Assigning a task or function to another person while retaining accountability; a branch manager may delegate duties but cannot delegate ultimate supervisory responsibility.

Structured induction and ongoing training an agency must provide to salespersons, covering agency policies, legal obligations, and safe handling of client information and money.

Written internal procedures and rules adopted by an agency to ensure licensees comply with the Act, regulations and Code, including supervision, complaints and trust account processes.

The requirement to maintain accurate, complete and retrievable records of transactions, client instructions, disclosures and trust account dealings for the prescribed retention period.

A periodic independent examination of an agency's trust account and records to verify compliance with trust accounting rules, typically required annually and reported to the Authority.

The regulations setting out mandatory standards of professional conduct and client care obligations owed by licensees to customers, including disclosure, honesty and fairness requirements.

The duties a licensee owes a client, including acting in their best interests, providing accurate information, following instructions and keeping them informed throughout a transaction.

The obligation to tell clients and customers, in writing and in a timely way, material information such as conflicts of interest, commission arrangements and known defects affecting a property.

A situation where a licensee's personal or financial interest, or a relationship with another party, could compromise their duty to act in a client's best interests; it must be disclosed.

Agreement given by a client after receiving a clear explanation of relevant facts, risks and alternatives, enabling the licensee to proceed with a course of action such as dual agency.

The duty not to disclose a client's personal or commercial information obtained during the agency relationship, except with consent or where required by law.

The written contract appointing an agency to act for a client, specifying scope, commission, term and the type of agency, which must be provided in writing and explained.

The fee an agency charges for real estate services, which must be agreed in writing with the client and disclosed clearly, including how and when it becomes payable.

Requirements that marketing be accurate, not misleading, identify the agency, and avoid unsubstantiated claims or omissions likely to deceive buyers or sellers.

A statement from a past client used in marketing; it must be genuine, accurately attributed and not misleading, and its use must comply with fair trading and advertising standards.

Behaviour, statements or omissions in marketing or dealings that create a false impression or are likely to deceive, breaching fair trading law and the Code.

A bank account used to hold client money, such as deposits and rent, separately from agency funds, subject to strict accounting, reconciliation and audit requirements.

Money received by an agency on behalf of a client, including deposits, rent and sale proceeds, which must be paid into a trust account and not mixed with agency money.

The ledgers, receipts, bank statements and reconciliations an agency must keep for trust money, showing each client's balance and every transaction affecting it.

The regular process of matching trust account records to the bank statement and client ledgers to confirm the total held equals the total owed to clients.

The documented internal process an agency must maintain for receiving, investigating and responding to client complaints within set timeframes before external escalation.

The formal pathway for consumers to raise grievances about a licensee, including internal agency review, the Authority's complaints process and potential referral to the disciplinary tribunal.

The formal proceedings before the disciplinary tribunal where allegations of licensee misconduct or unsatisfactory conduct are heard and determinations made.

Conduct falling short of the standard a reasonable member of the public is entitled to expect from a competent licensee, but not serious enough to amount to misconduct.

Serious conduct that is disgraceful or seriously incompetent, or that brings the real estate industry into disrepute, warranting the strongest disciplinary response.

A sanction imposed after a disciplinary finding, which may include censure, fines, conditions, suspension or cancellation of licence, and orders for compensation or training.

Removal of a licensee's right to practise, either by the Authority for disqualification or by the tribunal as a disciplinary penalty, ending their ability to carry out agency work.