Other laws and legislation
As a licensee, you should have a sound knowledge of the Real Estate Agents Act 2008, as well as other legislation that is relevant to real estate agency work.
This page contains brief overviews of key pieces of law that impose obligations on you as a licensee or are more broadly relevant to real estate agency work.
Laws and legislation
This is not a full list of such laws, and the laws that are covered are not comprehensively explained in terms of the obligations they impose licensees or otherwise impact on real estate agency work.
Anti-Money Laundering (AML) and Countering Financing of Terrorism Act 2009
Specific information for licensees can be found here(external link).
The AML/CFT Act introduces customer due diligence requirements on agents and requires agencies to complete risk profiles and have an established AML/CFT compliance programme in place.
Guidelines and resources for licensees can be found on the Department of Internal Affairs website here(external link).
Building Act 2004
This Act sets clear building expectations around health and safety standards, fire escape routes and building sustainability. It also sets out expectations around the accountability of owners, designers and building consent authorities.
Residential and commercial buildings may be affected by certain provisions under the Building Act. The Act requires the owner of a building with specified systems (such as sprinklers, lifts and fire alarms) to have a compliance schedule. The owner must provide the local council with an annual building warrant of fitness to confirm that the building’s specified systems are being maintained and are operating effectively. Licensees should be aware of this when undertaking agency work in respect of such a property.
For information about compliance schedules and other current building legislation matters, visit the Ministry of Business, Innovation & Employment Building Performance website, here(external link).
Read the Building Act 2004 here(external link).
Commerce Act 1986
A recent example of this Act being used in the real estate industry was the proceedings taken by the Commerce Commission against a number of licensees in relation to anti-competitive behaviour when Trade Me increased its advertising prices.
You can find information about price fixing and cartels here(external link).
Fair Trading Act 1986
A key aspect of the Fair Trading Act relevant to licensees’ work is the prohibition against false or misleading representations about the sale or possible sale of land (section 14). This includes representations made in advertising when marketing a property. A similar prohibition can be found in rule 6.4 of the Code of Conduct.
The Commerce Commission has useful factsheets about advertising - for example, see here(external link).
The Fair Trading Act also sets out the terms on which auctions must be run (sections 36X – 36ZF). See the Commerce Commission’s fact sheet on auctions here(external link).
Read more about unsubstantiated representations here.
Health and Safety at Work Act 2015
It’s important that agency owners and licensees employed or contracted to an agency understand their rights and obligations under the Health and Safety at Work Act. In particular, licensees should be aware of the health and safety implications when visiting properties and when travelling to and from them.
WorkSafe New Zealand(external link) has a lot of valuable resources and guides about the Health and Safety at Work Act.
Local council bylaws
Any local laws passed by the council are designed to ensure that the actions of an individual or group do not have an adverse impact on the rest of the community. The bylaws apply only within the municipality in which they are passed, though many councils share similar laws.
It is important to be aware of local bylaws because they can impact the way you carry out real estate agency work. For example, bylaws can restrict where you can place signage.
Councils must make all copies of local laws available for public inspection and purchase. You can contact your local council for details of the bylaws in your area.
Overseas Investment Act (OIA) 2005
The Overseas Investment Amendment Act 2018 will amend the Overseas Investment Act (OIA) 2005. The focus of the Act is to heavily restrict the ability of overseas persons from purchasing residential land, with one of the key changes being that overseas persons will generally be unable to buy existing homes in New Zealand.
Under the Amendment Act, someone who holds a residence class visa granted under the Immigration Act 2009, has been living in New Zealand for the last 12 months (including being present in New Zealand for at least 183 days in those 12 months), and is a tax resident in New Zealand will generally still be able to purchase a home.
The changes to the legislation are expected to be implemented in late 2018. You can read more here(external link).
Privacy Act 1993
Licensees collect information about private individuals every day on listing agreements, open home registers, auction registers, sale and purchase agreements or via online or email correspondence with consumers.
The Privacy Act governs how people’s personal information is collected, stored, used and disclosed.
It sets out rules around individuals’ rights to access information about themselves and to have that information corrected. It also provides a mechanism for people to make a complaint about matters to do with their personal information. The Office of the Privacy Commissioner has a helpful website(external link) that explains your obligations under the Privacy Act.
Residential Tenancies Act 1986
It’s important that licensees and agencies understand the respective rights and responsibilities of landlords and tenants. Licensees need to pay special attention when listing a residential property that is occupied by tenants because there may be issues with access rights for viewing and notice periods for ending a tenancy agreement.
(There are also rights and responsibilities to be aware of when selling commercial property, but these come under other laws, not the Residential Tenancies Act).
Read the Residential Tenancies Act here(external link).
Unit Titles Act 2010
All licensees working in residential sales should be aware of the requirements of the Unit Titles Act, particularly as they relate to disclosure.
Read the Unit Titles Act 2010 here(external link).
Read more about unit titles here(external link) on the Tenancy Services website.