The complaints process for licensees

If we receive a call from a person who is concerned about your conduct, we’ll encourage the caller to contact you or your manager to discuss their concerns.

If appropriate, we may call you or your manager directly with information about the caller’s concerns to allow you to resolve them.

If someone isn’t able to resolve their concerns with you, they may choose to make a formal written complaint to REA.

When REA receives a complaint, we call the person who made the complaint (the complainant) to confirm we’ve understood what the complaint is about. We’ll also give them information about what behaviour they can reasonably expect from licensees.

The Registrar then considers whether REA can look into the complaint. The Registrar will consider:

• whether there are any alleged breaches of the Real Estate Agents Act (2008)(external link) or Rules, and what, if any, impact of those breaches there has been
• whether we've looked at the complaint before, and whether the complaint is a proper use of the REA complaint process
• whether the complaint would be better managed by another agency.

If the Registrar decides that REA is not able to look into the complaint, both you and the complainant will receive a written decision from the Registrar explaining why. REA will refer the complaint to another agency if the Registrar considers that the complaint would be better managed by that agency. For example, a complaint made by a tenant about a property manager not lodging a bond might be referred to Tenancy Services(external link).

If we receive a formal complaint, a facilitator from REA’s early resolution team will contact you and your manager. The facilitator will explain what the complaint is about and hear your side of the story. The facilitator is a neutral party in the complaint process.

Deciding how to manage the complaint 

This stage of the complaint process is to consider whether the complaint is managed through REA’s early resolution process or referred to a Complaints Assessment Committee (CAC).

If the conduct alleged in the complaint appears to be a breach of the rules, the facilitator may ask you for information to help decide whether the complaint should be referred to a Complaints Assessment Committee (CAC). You don’t have to provide this information if you don’t want to, but it can help answer key questions and may mean the complaint is referred to an early resolution process instead of the CAC process.

A facilitator may ask you and the complainant if you’d like to engage in an early resolution process. The early resolution process is voluntary. You can ask the facilitator to refer the complaint to a CAC if you prefer. 

Complaint decisions are published

CAC and Disciplinary Tribunal decisions are published in our decisions database(external link) and the public register(external link)

Disciplinary Tribunal decisions are also published on the Disciplinary Tribunal website(external link)

A CAC is made up of three people appointed by REA: a lawyer, a real estate industry member and a person with experience in working with consumer interests.

If we refer a complaint about your conduct to a CAC we will email you a copy of the complaint. You may want to speak to your manager or a lawyer and have them involved in the process, but you don’t have to.

What does a CAC do?

When a CAC receives a complaint, it will decide whether to inquire into the complaint. If the CAC decides not to inquire, it will send you and the complainant a written decision saying this and the reasons for that decision. This will be the end of the complaint process unless you or the complainant appeals the decision to the Disciplinary Tribunal.

If the CAC decides to inquire into the complaint, an REA investigator will then be asked to investigate the complaint. They will contact you to request your formal response to the complaint. Your response will be given to the complainant, so the complainant has an opportunity to comment on your response. It’s important to carefully consider the complaint, how you respond to the complaint and provide the investigator with all the relevant information.

The information the investigator gathers is given to the CAC in a written report. The CAC members read the information provided by all parties (the parties could include you, your agency, the complainant or other people who have relevant information that the investigator has spoken with) and together, make a decision on the complaint.

The CAC may decide:

• to take no further action on the complaint
• to make a finding of unsatisfactory conduct against you
• that the conduct is misconduct, and lay a misconduct charge with the Disciplinary Tribunal, for it to decide on the charge.

If the CAC makes a finding of unsatisfactory conduct against you, the CAC will ask you and the complainant what an appropriate penalty might be. They will consider both parties’ views when deciding on the penalty. Some of the penalties available to the CAC include:

• censure or reprimand
• requiring you to apologise to the complainant
• requiring you to complete further training or education
• ordering fees to be reduced, cancelled or refunded
• ordering an error or omission to be rectified
• a fine of up to $10,000 for an individual or $20,000 for a company
• ordering costs be paid to the complainant
• referring the complaint to the Disciplinary Tribunal to decide whether you should pay compensation to the complainant for financial loss they have suffered of up to $100,000.

You and the complainant can appeal the CAC's decision to the Disciplinary Tribunal. More about how to file an appeal with the Disciplinary Tribunal (justice.govt.nz)(external link)

If the CAC believes the conduct reaches the level of misconduct, it may decide to lay a misconduct charge with the Disciplinary Tribunal.

If a charge is laid against you with the Disciplinary Tribunal, you will be notified in writing. You have the right to legal representation and to appear before the Disciplinary Tribunal to be heard. Hearings are generally open to the public.

The Disciplinary Tribunal is appointed by the Ministry of Justice and is separate and independent from REA.

The Disciplinary Tribunal can make any of the decisions a CAC can make and it can find that either unsatisfactory conduct or misconduct has taken place. It can also decide to take no further action on a charge.

The Disciplinary Tribunal can also impose more serious penalties or orders

If the Disciplinary Tribunal finds you guilty of misconduct, you are likely to face more serious penalties. These include:

• having your licence cancelled or suspended
• ordering that your employment be terminated and that no agent employ or engage you in real estate agency work
• imposing a fine of up to $15,000 for an individual or up to $30,000 for a company
• ordering you to pay compensation to the complainant of up to $100,000 for loss suffered by the licensee’s misconduct.

You and the complainant can appeal Disciplinary Tribunal decisions to the High Court. There is also a further right of appeal to the Court of Appeal on questions of law. The court of appeal is the final appeal stage.

Complaint decisions are published

CAC and Disciplinary Tribunal decisions are published in our decisions database(external link) and the public register(external link)

Disciplinary Tribunal decisions are also published on the Tribunal website(external link)