NZ Certificate in Real Estate (Salesperson, Level 4) flashcards

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

REAA

Real Estate Agents Authority: independent Crown entity established under the Real Estate Agents Act 2008 that licenses agents and salespersons and handles complaints.

Licensing classes

The Act provides for three licence classes: salesperson, branch manager, and agent. Only an agent may operate a business or supervise a branch.

CPD requirement

Salespersons must complete at least 10 hours of verifiable continuing professional development each year, including any mandatory topics set by the Authority.

CAC

Complaints Assessment Committee: a committee of the REAA that decides whether a complaint should be dismissed, referred to the Disciplinary Tribunal, or resolved with the licensee.

Disciplinary Tribunal

The body that hears serious misconduct charges against licensees and can cancel or suspend licences and impose fines.

Unsatisfactory conduct

Conduct that falls short of the standard a reasonable member of the public would expect from a competent licensee, but is less serious than misconduct.

Misconduct

Serious conduct that breaches the Act or Code and brings the profession into disrepute; it is heard by the Disciplinary Tribunal.

Code of Conduct

The Professional Conduct and Client Care Rules 2012, made under the Act, which set the standards of behaviour and client care for licensees.

Rule 5 honesty

Licensees must be honest and fair, and must not mislead clients or withhold information that should be provided.

Rule 6 best interests

A licensee must act in the client's best interests and must not act where a conflict of interest exists unless the client gives informed consent.

Rule 9 appraisal

Before an agency agreement is signed, the licensee must give the client a written appraisal of the property and disclose the estimated commission.

Rule 10 agency agreement

The agency agreement must be in writing, explained to the client, and a copy given to the client immediately after signing.

Rule 7 confidentiality

A licensee must not disclose confidential client information unless required by law, necessary to perform the work, or with the client's consent.

Rule 8 disclosure

A licensee must disclose known defects and any information that would materially affect the client's decision about the property.

Written appraisal

A realistic estimate of the property's likely sale price, based on comparable sales, provided to the client before the agency agreement is signed.

Exclusive agency

An agency agreement where the client appoints one agent and agrees to pay commission regardless of who introduces the buyer during the term.

Sole agency

An agency agreement giving one agent the sole right to sell for a set term; for residential property the term cannot exceed 90 days without written renewal.

General agency

An agency agreement where the client may appoint more than one agent and pays commission only to the agent who introduces the buyer.

Commission disclosure

The agency agreement must state the commission amount or method of calculation and any GST treatment before the client signs.

Marketing authority

Written authority from the owner is required before a licensee advertises a property; advertising must be accurate and not misleading.

Auction reserve

The minimum price the vendor will accept at auction; it is set before the auction and may be disclosed to bidders.

Fall of the hammer

The moment an auction sale becomes binding; the highest bidder is declared the buyer and the sale is unconditional unless conditions were announced.

Tender process

Buyers submit written offers by a set deadline; the vendor may accept, reject, or negotiate with any tenderer, and tenders are not opened publicly.

Multi-offer

When more than one offer is made, the licensee must tell all parties a multi-offer situation exists and present all offers to the vendor.

Sale and purchase agreement

The standard contract setting out parties, property, price, deposit, settlement date, conditions, and warranties for the sale of a property.

Deposit

A payment, usually 10% of the price but negotiable, held in trust until settlement or as agreed in the sale and purchase agreement.

Conditions

Clauses such as finance, LIM, or building report that must be satisfied or waived before the agreement becomes unconditional.

Trust account

A separate bank account where client money such as deposits is held; it must be audited annually and reconciled at least monthly.

Trust money banking

Client money must be paid into the trust account within 5 working days of receipt and must not be mixed with the agency's own funds.

Trust account audit

An annual audit by an approved auditor; the report is provided to the REAA and records must be kept for at least 6 years.

Supervision duty

The agent must ensure salespersons are properly supervised, trained, and comply with the Act and Code, and is accountable for the trust account.

Trust account deficiency

Any shortfall in the trust account must be reported to the REAA immediately and rectified by the agent.