Property

Property finders likely to cause a few headaches for REAA

Property finders, the people who match properties to potential investors, may cause the newly-active Real Estate Agents Authority (REAA) a few headaches in the coming months, with some confusion over whether or not they will need to be licensed under the new regime.

Tuesday, November 17th 2009

The REAA comes into effect today and is the body established to regulate real estate agents.

A property buyer's agent will need to be licensed under the new code of conduct and regulatory requirements enforced by the REAA, but there could be some wiggle room for those people who define themselves as property finders or home finders, according to Graham Crews, real estate consultant at BDH Solutions.

Crews said property finders who entered into a memorandum of understanding with a property owner and then on-sold the property might not have to be licensed as they are essentially acting as a private seller. However, if they accept a fee from a third party to do so, then they are probably entering territory covered by the legislation, and would require a licence.

"If you're taking payment from a third party, then that's an issue," he said. "The Real Estate Agents Authority's legal team are going to know that, and they will probably investigate."

He expects real estate agents will have to report property finders they consider may be acting unlawfully without a licence to the REAA under the new code of conduct.

The issue that may confuse some people in New Zealand is that the legislation is more encompassing than similar regimes overseas, he said.

In guidelines released on the REAA website, buyer's agents will have to be licensed, and this includes people who may class themselves as property finders.

Crews said there is an issue around the definitions of the terms, with some agents calling their assistants ‘buyer's agents', when they clearly are not according to the legal definition.

Property managers, auctioneers, lawyers and conveyancing practitioners are exempt from the act.

The REAA takes up its role as the industry regulator today after policy-makers overhauled the real estate sector last year, stripping the Real Estate Institute of its regulatory function and handing over a beefed up regime to an independent body.

 

Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

More Stories

Support for regulation

Monday, March 18th 2024

Support for regulation

REINZ has emphasised the need for property management regulation to Parliament’s Social Services and Community Committee.

A better investment market

Thursday, March 14th 2024

A better investment market

“Reinstatement of interest deductibility starting from the new tax year on 1 April brings property investors back in line with every other business in the country, where interest costs are a legitimate deductible expense," Tim Horsbrugh, New Zealand Property Investors Federation (NZPIF) executive committee member says.

[OPINION] Recessionary times

Thursday, March 14th 2024

[OPINION] Recessionary times

It is not the best out there for many businesses and property sector people. Sales are down across the board, our clients’ confidence is falling, and there is a lot of uncertainty.

Interest rate expectations: It’s not over yet

Thursday, March 07th 2024

Interest rate expectations: It’s not over yet

Most Kiwis think interest rate increases have peaked.