What should your agent do?
UNDERSTANDING what‘s required of a real estate agent can help you to choose the right one to sell your home, Real Estate Authority chief executive Kevin Lampen-Smith says.
“To be a real estate agent, you must complete qualifications, be assessed as fit and proper to hold a licence and complete annual professional development requirements set by the Real Estate Authority.”
It’s illegal to do real estate agency work without a licence, and agents must comply with the rules of the Real Estate Agents Act 2008.
There are three types of real estate licence: a salesperson, branch manager and agent.
An agent’s licence allows an individual to conduct real estate agency work individually or in a partnership.
This level of licence is also needed to be the lead agent, often referred to as the licence holder, for an agency.
Salespeople and branch managers must work for, or on behalf, of someone that holds an agent’s licence.
Salespeople also need to be supervised by an agent or branch manager.
Each level of licence allows an individual to auction a property without holding an auctioneer’s licence.
“When choosing a real estate agent, it can be useful to get recommendations from friends, family and work colleagues,” Lampen-Smith says. “You can also search for online reviews and testimonials.
“The Real Estate Authority has a public register where you can look up an agent, check that they hold a current licence and find out if they have had any complaints upheld against them.
“You should never use an unlicensed person to sell your home as they will be breaking the law and you will have no recourse if things go wrong.”
To help protect New Zealand’s reputation and economy from money laundering activity and financing terrorism activity, real estate agents must vet vendors.
This includes confirming their identity, date of birth, and address details before signing an agency agreement, a legal document that sets out the sale process.
Agents also are bound by a code of conduct under the 2008 act, LampenSmith says.
“They are not allowed to put any undue or unfair pressure on a seller, and they must keep you updated about anything relevant to the sale of your property.
“If they, or someone they know, are interested in buying your property, this conflict of interest must be declared. If this happens, ask another agent to represent you.
“It’s important that you have someone independent working to sell your property, especially when you’re paying them to do it.”
For independent guidance and information on buying or selling, check out www.settled.govt.nz