Licensing and licence classes (branch manager requirements)
What the exam tests
This domain tests whether you can match licence classes to permitted activities and explain how a branch manager is appointed. The examiner looks for the distinction between holding a licence and being appointed to manage a branch, plus the experience and qualification gateways.
Licence classes
- Salesperson: entry licence; may carry out real estate agency work only under supervision.
- Branch manager: may carry out agency work and supervise salespersons; appointment to manage a branch requires this class (an agent may also manage).
- Agent: highest individual class; may operate an agency and supervise.
- Company: needs a company licence; individual licence holders work for it.
Branch manager gateway
To be licensed as a branch manager, an applicant must be fit and proper, hold the required qualification (NZ Certificate in Real Estate (Branch Manager) Level 5), and show at least two years' full-time equivalent real estate agency experience in the last five years. Being a good salesperson is not enough. The licence must be granted before the person is held out as branch manager.
Worked example
A salesperson has three years' experience and is offered the manager's role at a new branch. The correct path is: complete the branch manager qualification, apply for a branch manager licence, and only then be appointed. The company cannot solve the problem by calling the salesperson 'manager' or having them sign agency agreements as if licensed.
Traps
- Counting part-time or old experience without converting to FTE and checking the five-year window.
- Treating a salesperson licence as authority to supervise.
- Confusing the agent's ability to manage with a salesperson's lack of authority.
- Appointing before the licence is issued.