Ministry of Justice

Appeal / complaint licensee and agency mismanaged conflict of interest and agency failed to appropriately supervise licensee / licensee’s family member purchased property / Committee found licensee and agency guilty of unsatisfactory conduct for failure to follow s134 / fined agency $9,000 and published its name / vendor appealed against penalty / Real Estates Agents Act 2008, s3, s4, s72, s73, s93, s111, s134, s136 / Professional Rules 2012, r6.4 / HELD / Tribunal clarified Committee’s liability findings / found Committee erred in failing to consider refund under s134 / complainants in disciplinary proceedings need not commence civil proceedings to recover under s134 / nexus required between subject of upheld complaint and refund / s134 does not require licensee to act under agency agreement nor any loss to vendor / refund punitive, not compensatory / licensee and agency ordered to refund commission shares / Committee’s decision modified / appeal partially upheld   

Liability and penalty / real estate agency pleaded guilty to amended charge of unsatisfactory conduct for non-compliance with Audit Regulations over one year period / failure to appoint auditor, notify Authority of trust account transactions, provide monthly balances, and prepare statement or statutory declaration / Real Estate Agents Act 2008, s72, s110 / Real Estate Agents (Audit) Regulations 2009, reg9, reg15, reg16 / HELD / Tribunal emphasised importance of trust account compliance for public protection / amount of monies transferred in and out of trust account were at times significant / accepted that breaches occurred inadvertently due to miscommunication and change in auditors / agency admitted liability and cooperated with Authority / no prior disciplinary history / company implemented changes to ensure future compliance / low to mid-level penalty appropriate / Tribunal ordered censure, required company officer to undergo training and imposed $5,000 fine

Appeal / licensee provided purchaser with key to property prior to settlement without vendor’s permission / Committee found licensee guilty of unsatisfactory conduct / Committee ordered censure, $1,500 fine and refund of commission to sum of $3,000 / licensee appealed against penalty / Real Estates Agents Act 2008, s3, s4, s892b, s93 and s111 / Professional Rules 2012, r5.1, r9.1 and r9.5 / Tribunal admitted licensee’s fresh evidence of commission statement / evidence relevant, cogent and credible / Committee did not refer to any evidential foundation when fixing sum of compensatory order at $3,000 / interests of natural justice supported admission of evidence / commission refund should identify and relate to particular aspect of work relating to disciplinary findings / unsatisfactory conduct did not pertain to entire range of work provided / Committee’s refund sum excessive / $1,500 refund and $1,500 fine appropriate / Committee’s decision modified / appeal partially upheld

Application to review Registrar’s determination not to pursue complaint as it only disclosed inconsequential matters / Real Estate Agents Act 2008, s72, s73, s74, s112 / HELD / licensee’s property management was not real estate agency work and therefore could not be assessed as unsatisfactory conduct, only misconduct / misconduct requires conduct reasonably regarded by agents of good standing or reasonable members of the public as disgraceful / licensee’s communications to complainant were direct and could be perceived as abrupt and rude, but behaviour not “disgraceful” / communications relating to rent relief viewed in context of longstanding dispute as to alleged rent arrears which licensee and colleagues sought to resolve / no evidence of threatening behaviour / application dismissed / Registrar’s decision confirmed

Liability and penalty / real estate agency pleaded guilty to unsatisfactory conduct for its failure to appropriately supervise new agent / agent failed to read building report and identify potential weathertightness issues / agent did not bring report to attention of potential purchasers but recommended independent building report / Real Estate Agents Act 2008, s3, s50, s72b, s93, s110, s1102f / Professional Rules 2012, r8.3 / HELD / Tribunal satisfied agency’s conduct amounted to unsatisfactory conduct / no evidence of pattern of unsatisfactory conduct amongst inexperienced salespeople at agency / unsatisfactory conduct most likely arose from agent’s misunderstanding as to supervisory structure / agency has since taken steps to revise supervision policies to ensure situation not repeated / no previous disciplinary record / agency cooperated with disciplinary processes / Tribunal ordered censure and imposed $7,500 fine

Application to review Registrar’s determination / Registrar cancelled licence as licensee failed to complete required continuing education / Real Estate Agents Act 2008, s54d, s55, s112 / Real Estate Agents (Continuing Professional Development Rules) Notice 2018 / HELD / did not complete CPD by deadline / Registrar correctly followed statutory process / Registrar must cancel licence as required by s54d / licensees are responsible for ensuring they receive correspondence from Registrar / no error of fact or law / application dismissed, Registrar’s decision confirmed   

Appeal / complaint that licensee placed unauthorised bid at auction and misrepresented bid to induce further bid / licensee disclosed identity of other bidder to purchaser / Committee took no further action / Real Estates Agents Act 2008, s3, s4, s111 / Privacy Act 2020 / Professional Rules 2012, r5.1, r6.2, r6.4 / HELD / purchaser did not establish that licensee made bid without instruction or falsely informed purchaser that bid was made by other known bidder / purchaser’s evidence as to bidding instructions contradicted bidding history at auction / suggestion that licensee misled purchaser as to leading bid implausible / purchaser may have forgotten or become confused as to instructions / licensee breached bidder’s privacy by disclosing identity and bidding number / breach of r5.1 and r6.2 but no disciplinary response required due to agency’s (barely adequate) corrective actions / threshold for unsatisfactory conduct not met / appeal dismissed / Committee’s decision confirmed

Application to review Registrar’s determination not to pursue complaint as it only disclosed inconsequential matters / Real Estate Agents Act 2008, s74, s112 / HELD / second complaint / Registrar’s decision on first complaint was not reviewed / Tribunal’s task is to determine whether Registrar appropriately exercised discretion under s74 / no evidence supporting allegations against licensee / not shown that Registrar’s findings were wrong / application dismissed / Registrar’s decision confirmed

Application to review Registrar’s determination not to pursue complaint as it only disclosed inconsequential matters / Real Estate Agents Act 2008, s72, s73, s74, s112 / Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012, r10.2 / Kacem v Bashir [2010] NZSC 112 / HELD / satisfied appraisal met requirements of r 10.2 / licensees not expected to predict future rateable value of properties / no evidence of any undue influence or pressure on part of licensees / no evidence of unsatisfactory conduct or misconduct requiring disciplinary action / not demonstrated Registrar’s decision was wrong / application dismissed / Registrar’s decision confirmed

Liability and penalty / real estate agency pleaded guilty to amended charge of seriously incompetent or seriously negligent real estate agency work for non-compliance with Audit Regulations over period of nearly four years / failure to appoint auditor, notify Authority of trust account transactions, provide monthly balances, and prepare statement or statutory declaration / Real Estate Agents Act 2008, s73b, s110, s1102f / Real Estate Agents (Audit) Regulations 2009, reg9, reg12, reg15, reg16 / HELD / Tribunal emphasised importance of trust account compliance for public protection / concerning length and extent of non-compliance / agency obliged to be aware of its audit obligations / agency admitted liability and cooperated with Authority / no prior disciplinary history / company officer undertook courses to ensure audit compliance / mid-level penalty appropriate / Tribunal ordered censure and imposed $14,000 fine

Application to review Registrar’s determination not to pursue complaint as it only disclosed inconsequential matters / complaint against agency and licensees arose out of purchaser’s failure to settle / Real Estate Agents Act 2008, s743a, s742b, s112 / Kacem v Bashir [2010] NZSC 112 / HELD / matters complained about included failing to send full documentation to purchaser, the appraisal valuation, disclosure of the purchaser’s identity, communication about relisting under the agency agreement, not seeking a sufficient deposit, altering documents and dishonesty / no evidence of breach of professional standards provided and applicant failed to establish Registrar’s decision was flawed / Tribunal declined to consider new allegations on review / Registrar not required to undertake any investigation / applicants can provide evidence from witnesses they deem necessary directly / application dismissed / Registrar’s decision confirmed

Liability and penalty / real estate agency admitted misconduct for failure to submit monthly trust account reconciliations on time over three financial years, breaching Audit Regulations on 25 occasions / breaches included delays due to staff changes, administrative issues and COVID-19 disruptions / corporate defendant / charge amended by consent / Real Estate Agents Act 2008, s73b, s911d, s110, s1102f / Real Estate Agents (Audit) Regulations 2009, reg15 / HELD / Tribunal emphasised importance of trust account compliance for public protection / misconduct aggravated by repeated non-compliance despite reminders and inadequate systems to safeguard client funds / mitigating factors included admission of liability, cooperation with Authority, no previous disciplinary history and acknowledgement of COVID-19 impact / Tribunal ordered agency to pay $7,000 fine, and censure

Applications to review Registrar’s determination and for leave to adduce new evidence / Registrar determined not to pursue complaint as it only disclosed inconsequential matter / Real Estate Agents Act 2008, s743a, s112, s137 / Professional Rules 2012, r10.3 / Kacem v Bashir [2010] NZSC 112 / Wilson v Registrar of the Real Estate Agents Authority [2023] NZREADT 2 / HELD / fresh, credible and cogent test for new evidence appropriate for s 112 reviews, but should only be applied in context of limited grounds of review in Kacem / applicant adduced no further evidence that was not already before Registrar / no evidence to support allegation that licensee’s advertising was misleading, that licensee was overcharged for advertising services, or that licensee’s manager failed to supervise and manage the licensee adequately / no error of fact or law / applications dismissed / Registrar’s decision confirmed