The Real Estate Authority does not consider that work undertaken by LINZ Crown Property accredited suppliers is ‘real estate agency work’ under the Real Estate Agents Act 2008 (REAA). Note, this may differ from what LINZ requires from an accredited supplier. Find out more about Accredited Crown property service providers at linz.govt.nz(external link)
The Public Works Act 1981 (PWA) gives authority to the Crown to acquire land it needs for public works such as schools or roads.
Although part of the process involves negotiation with the land owner, this is a ‘good faith’ process. If the Crown needs land for a public work, and a land owner does not agree to the acquisition, the Crown retains the power under the PWA to acquire the land compulsorily. REA does not consider this to be a ‘sale and purchase’ transaction because we do not consider this to be a transaction ‘in trade’.
Accredited suppliers negotiate for the land on behalf of the Crown. The LINZ website defines ‘accredited supplier’ as: A company that, or individual who, has been accredited to carry out specific Crown property work that supports LINZ’s discharge of a Statutory Function. LINZ has set PWA standards that accredited suppliers must adhere to, and compliance is audited by LINZ.
Although some of the work undertaken by accredited suppliers under the PWA may be similar to work done for a private sale, we consider this is different because accredited suppliers are likely to be limited in how far they can go under the PWA provisions. Also, if an agreement cannot be reached with the Crown, land owners may have their land taken, unless they successfully appeal an acquisition in the Environment Court.
The purpose of the Real Estate Agents Act 2008 and licensing of real estate agents is focused on consumer protection. If accredited suppliers were also licenced real estate agents, it might result in duplicate regulation. Accredited suppliers are acting on behalf of the Crown and are limited to the provisions of the PWA, in that they will be directed to negotiate land which is needed by the Government, acting through LINZ. See the LINZ website for further information on the PWA process.(external link)
Note that when land acquired for public works is no longer needed for that purpose, there are options for disposal of the land, one being an open market sale. Disposal through open market sale would need to be completed by a licensed salesperson.