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
“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
“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,”
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
31 March 2022
Year to date change
- 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
For media enquiries, please contact the REA media team on 027 237 7196 or firstname.lastname@example.org