Industry reforms should cover property managers, says REINZ

On releasing the institute’s submission on the Ministry of Justice’s consultation document, which outlines the government’s preferred options for reform, Cleland said if regulation is to be effective, it will need to cover all persons engaged in real estate who pose a potential risk to consumers.

They include property managers, letting and leasing agents and companies that charge a marketing fee rather than a commission for the sale of property.

The government is not currently proposing to bring these groups into the new regulatory regime on the same basis as real estate agents and salespeople.

Yet Cleland says one in five complaints to the institute concerns letting, leasing and property management, and that there is no difference in principle between charging marketing fees and charging commissions.

“The institute will be pushing to ensure that the new legislation protects the consumer across the full spectrum of the property market,” Cleland says.