Real Estate Agents Act 2008 and the Regulatory Framework
What this domain tests
The exam checks whether you can place a transaction inside the Real Estate Agents Act 2008 (REAA 2008): who may do real estate agency work, how licensing works, and what the regulator can do.
Regulator and licence classes
The REAA 2008 established the Real Estate Agents Authority (REAA) as the independent regulator. It licenses agents, branch managers and salespersons, maintains the public register, receives complaints and refers matters to Complaints Assessment Committees and the Real Estate Agents Disciplinary Tribunal. Real estate agency work may only be done by a licensed person. A salesperson must work under the supervision of a licensed agent or branch manager and cannot operate as an independent agency.
Core compliance points
- Hold the correct licence and keep it current; notify the Authority of relevant changes.
- Comply with the Act, regulations and the Professional Conduct and Client Care Rules 2012.
- Do not hold out or allow an unlicensed person to carry out agency work.
- Keep client money in the agency trust account and meet record-keeping and audit duties.
Worked example
A sole salesperson is asked by a friend to list a house while the branch manager is overseas. Reasoning: the salesperson may carry out agency work only within an adequate supervision structure. If no supervisor is available, the listing should be referred to the agent or another branch manager; signing the agency agreement and marketing without supervision creates licensing and conduct risk. The correct answer is not 'salespersons can never list' - it is 'supervision must be in place.'
Traps
Do not confuse the REAA (regulator) with REINZ (industry body). Do not assume a salesperson can run an agency alone. Do not treat licence renewal, CPD or notification duties as administrative afterthoughts; they are regulatory obligations.