Conduct regulator expects high professional standards from real estate sector in changing market

While significant shifts in the property market are changing the operating conditions and risks for

licensed real estate professionals (licensees) as well as consumers, the fundamental principles of

high standards of professional conduct across the real estate sector remain paramount, the Real

Estate Authority (REA) said today.

REA Chief Executive Belinda Moffat said that a market with an increased number of residential

properties for sale relative to active buyers demands a high level of professional skill and care from

licensees.

“As the conduct regulator for licensed real estate professionals, REA reminds all licensees operating

in the current challenging market conditions to keep the REA Code of Conduct principles at the

heart of their real estate work. Conduct standards are important safeguards to keep standards high

across the profession and to protect consumers from harm.

“Specifically, it is important that licensees manage vendor client expectations with regular clear

communication. Keeping property appraisals updated to reflect changes in the market and

providing vendors with good information about the different methods of sale are critical ways that

the sector can support consumers in this changing environment,” Belinda says.

“In the cooling market vendors may exert increased pressure on real estate professionals to secure

a sale, but it is critical that licensees work with vendors and ensure that disclosure obligations are

not overlooked. Ensuring compliance with disclosure requirements and treating all parties to a real

estate transaction fairly are important aspects of maintaining high standards and professionalism,

as the Code of Conduct requires,” Belinda says.

REA’s latest licensing statistics show that there has been significant growth in people joining the

real estate profession over the last two years. As at 31 March 2022, there were 16,692 active

licensees.

“As the real estate conduct regulator we oversee a regulatory framework designed to ensure all

licensees receive appropriate training and supervision to help them meet the high standards

required of them as real estate professionals. We support consumers by providing information on

the transaction process and also oversee conduct through the complaints and discipline process,”

Belinda says.

REA also advises vendors and buyers in the current market to be proactive about understanding

their role in securing a fair outcome.

“Buying and selling real estate is complex and both parties must ensure they understand the

process and have good knowledge and information about the specific property involved. REA has

developed the Settled.govt.nz(external link) website to inform and guide consumers on the process, whether as

buyers or sellers. We encourage all participants involved in real estate transactions to take

advantage of this extensive resource.

“We urge consumers to be aware of the market dynamics in the area in which they are buying or

selling. Accurate, well-documented disclosure by vendors and robust due diligence about the

property by buyers are key to a fair transaction and avoiding disputes. Taking time to obtain key

information such as a building report and Land Information Memorandum (LIM), as well as seeking

legal advice in a timely way are all important steps consumers can take to ensure they can navigate

the real estate process with confidence,” Belinda says.

Licensing Numbers 2020-2022

• Total active licences 16,692, up 3% from June last year.
• REA issued 1,966 licences in the preceding 9 months, up 6% on the previous year

Ends

For media enquiries, please contact the REA media team on 027 237 7196 or media@rea.govt.nz