NZ Certificate in Real Estate (Salesperson, Level 4) key terms

The statute that governs licensing, conduct, discipline and trust accounting for real estate agents and salespersons in New Zealand, and which establishes the Authority, the Disciplinary Tribunal and the complaints process.

The independent Crown entity that licenses and supervises real estate professionals, publishes the Code of Conduct, handles complaints and educates the public about conduct and licensing matters.

A person who holds a current licence under the Act, being either a salesperson, a branch manager or an agent, and who must comply with the Code of Conduct at all times.

A licensed individual who may carry out real estate agency work only under the supervision of an agent, and who cannot operate independently or hold client money.

The licensed person who runs an agency business, may employ or engage salespersons, is responsible for supervising them, and holds the highest level of licence under the Act.

A licensed person approved to manage a branch of an agency business, responsible for supervising the salespersons at that branch and for its day-to-day compliance.

Work done in trade for reward in connection with the sale, purchase, letting or other disposal of land or businesses, including appraisals, marketing, negotiating and preparing agreements.

The body established under the Act that hears serious misconduct charges referred by the Authority's complaints assessment committee and can impose penalties such as censure, suspension, cancellation or fines.

Conduct that falls short of the standard a reasonable member of the public is entitled to expect from a competent licensee, but which is less serious than misconduct and may be dealt with by the Authority.

Serious conduct that is disgraceful or seriously incompetent, or that wilfully breaches the Act or the Code, and which is referred to the Disciplinary Tribunal rather than resolved by the Authority.

The compulsory learning that licensees must complete each licensing year to keep their skills and knowledge current, verified by the agent and subject to audit by the Authority.

The Professional Conduct and Client Care Rules 2012 made under the Act, setting out the standards of behaviour, disclosure and client care every licensee must meet in their work.

The part of the Code that requires licensees to give clients prescribed information, explain the agency agreement, disclose conflicts and provide a written appraisal before an agency agreement is signed.

The obligation of loyalty and good faith a licensee owes a client, requiring the licensee to act in the client's best interests, avoid conflicts and not profit secretly from the relationship.

A situation where a licensee's own interests, or those of a related person, could influence how they act for a client, and which must be disclosed to the client in writing.

The requirement to tell clients and customers, in writing and in plain language, all information that could reasonably affect their decision, including known defects, conflicts and the limits of the licensee's role.

The person who has signed an agency agreement with the agency and to whom the licensee owes the duties of care, loyalty and reporting under the Code.

A person who is not the licensee's client but who is involved in a transaction, such as a buyer at an open home, and to whom the licensee still owes honesty and fair dealing.

The written contract appointing an agency to act for a seller or landlord, which must state the term, commission, cancellation rights and the type of agency, and be signed by the client.

An agency agreement where one agency is appointed but the seller keeps the right to sell privately without paying commission, so the agency is not the only possible source of a sale.

An agency agreement appointing one agency as the only source of a sale, so commission is payable even if the seller finds the buyer themselves during the term.

An agency agreement that appoints two or more agencies, with commission payable only to the agency that introduces the buyer who completes the sale.

A documented assessment of the likely selling price or rental range, prepared by a licensee using evidence and given to the client before an agency agreement is signed.

A method of estimating value by comparing recent sales, current listings and market conditions for similar properties, used to support a written appraisal.

The rating valuation set by a local council for rating purposes; it is not a market appraisal and must not be presented to a client as an indication of selling price.

A listing where the agency acts for the seller and also introduces the buyer, which must be disclosed to both parties because it limits the licensee's ability to negotiate on the seller's behalf.

The fee an agency earns for its work, which must be agreed in writing in the agency agreement and disclosed to the client before the agreement is signed.

The documented strategy for promoting a property, setting out methods, costs and timing, which must be agreed with the seller and paid for as agreed.

A public sale method where the property is sold to the highest bidder once the reserve is met, with bids binding and no cooling-off period for the buyer.

The lowest price the seller will accept at auction, set in writing before the auction and kept confidential; the property is passed in if bidding does not reach it.

A bid made by or on behalf of the seller at auction, which the auctioneer must clearly announce as a vendor bid so buyers are not misled about genuine interest.

The result when bidding at auction fails to reach the reserve price, after which the property may be sold by negotiation or withdrawn from sale.

A sale method where buyers submit written offers by a set closing date and time, usually without knowing other offers, and the seller may accept, reject or negotiate any of them.

A situation where more than one buyer wants to make an offer at the same time, requiring the licensee to treat all buyers fairly and tell each that others are interested.

The written contract recording the property, price, conditions, settlement date and obligations of buyer and seller, usually on the standard Auckland District Law Society form.

A term in a sale and purchase agreement that must be satisfied before the contract becomes unconditional, such as finance, building report or LIM approval.

Money paid by the buyer on signing the sale and purchase agreement, held in the agency's trust account and released only in accordance with the contract.

A bank account where client money such as deposits and rents is held separately from the agency's own funds, audited annually and subject to strict record-keeping rules.

The regular process of checking that trust account records, individual client ledgers and the bank balance agree, required at least monthly and signed off by the agent.

The agent's duty to oversee and take responsibility for the work of salespersons, including training, checking agreements and ensuring trust account and conduct compliance.