Real Estate Institute welcomes review

Real Estate Institute welcomes full legislative review

29 March 2007

The Real Estate Institute has welcomed the Government's announcement today of a complete overhaul of the Real Estate Agents Act 1976.

National President Murray Cleland said that the Institute had been pushing for a full review because the Act was more than 30 years old and badly out of date.

"Among the changes the Institute is seeking are:
• Improvements to the complaints and disciplinary procedures to make them more independent, transparent and accountable;
• Increased maximum penalties and provision for consumer compensation;
• A requirement that anyone who sells real estate must be licensed. (This is similar to the structure in the legal profession and also to the requirements in the United States.);
• A requirement that agents and salespeople undertake continuing professional development to ensure that they are up to date with developments and with their legal obligations; and
• Replacement of the Fidelity Guarantee Fund with a system of compulsory professional indemnity insurance.

"We have been discussing proposals along these lines with officials and look forward to the release of the Government's proposed reforms in May," Mr Cleland said.

"No-one has a bigger interest in ensuring public confidence in the industry and in the industry's reputation than do we and we will be happy to co-operate with the Government in securing the necessary legislative change to ensure this.

"We have been doing a lot of work off our own initiative – including the appointment earlier this month of consumers' advocate, David Russell, to chair a review of our code of ethics – to raise standards but the existing Act is an impediment to structural change," he said.

"The Institute is restricted currently in the number of complaints we can refer to the Real Estate Agents' Licensing Board because the Board's jurisdiction is extremely narrow. We have already identified this as a problem to the Minister and are glad that it is now being addressed," he said.

An aide memoire outlining the Institute's submissions for reform is available: www.reinz.org.nz

ENDS

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