Ministry of Justice

Appeal / licensee facilitated sale following relationship property division agreement / property owner alleged that licensee enabled unauthorised entry of valuer into property, accepted ex-husband’s instructions without agreement, and improperly changed duration of agency agreement / Committee took no further action / Real Estate Agents Act 2008, s111 / Professional Rules 2012, r5.1, r6.1, r6.2, r6.4, r9.1 / HELD / no evidence of wrongdoing by licensee in allowing valuer to enter house / owner was informed prior to visit and did not object / owner did not inform licensee to deal only with her or correct understanding that ex-husband was fully active participant / however, licensee wrong to alter duration of signed agency contract without owner’s consent / breach of r5.1, r6.2 and r9.1 / licensee acted on another beneficial owner’s instructions and immediately took steps to rectify / threshold for disciplinary response not met / Committee’s decision confirmed / appeal dismissed

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

Application to review Registrar’s determination / Registrar cancelled licence as licensee failed to pay annual fee for keeping licence suspended / HELD / licensee notified that application would be dismissed if submissions not filed / licensee did not file submissions / no error by Registrar in cancelling licence / application dismissed, Registrar’s decision confirmed

Appeal / licensee allegedly made false statement to purchaser there were problems with body corporate resulting in loss of conditional offer / did not promptly remove web advertisements after sale of two properties went unconditional / Committee took no further action / Real Estate Agents Act 2008, s111 / HELD / alleged conversation not proven on balance of probabilities given purchaser and licensee denied it took place / any such conversation did not constitute real estate agency work / licensee was not engaged in the vendor’s transaction or in any other transaction / was not doing work on behalf of another person or for the purpose of any transaction involving licensee or buyer / no evidence statement was false / conversation could not amount to unsatisfactory conduct or misconduct / discussion with vendor also not real estate agency work / extended web advertisement did not affect vendor / was promptly removed / appeal dismissed / Committee’s decision confirmed

Appeal / licensee failed to inform purchaser that property’s spa pool was not compliant and of risk of asbestos in ceiling / Committee found unsatisfactory conduct in relation to spa pool / took no further action in relation to asbestos issue / purchaser appealed against decision to not refer compensation and take no further action / Real Estate Agents Act 2009, s931f, s931ha, s111 / Professional Rules 2012, r5.1, r6.2, r6.4, r10.7 / HELD / conduct in relation to spa pool not minor or technical / Committee should have referred compensation, but Tribunal would not have awarded it as failure to pass on council’s information not the operative or real cause of purchaser’s loss / licensee gave written warning spa area was unconsented / purchaser should have asked what warning meant / presence of asbestos in textured ceiling only a possibility and not likely or significant potential risk / no defect requiring disclosure / no breach of Rules / appeal dismissed / Committee’s decision confirmed

Appeal / ruling on whether Committee correct not to refer compensation / Committee found licensee guilty of unsatisfactory conduct for completing GST schedules in sale and purchase agreement without complainant’s knowledge / Real Estate Agents Act 2008, s931f, s931ha, s1106 / HELD / Committee made error of law in describing threshold for referral as “more than mid-level” and approaching high level conduct / statutory threshold is “more than minor or technical breach” / Committee found mid-level unsatisfactory conduct, so threshold was met / Committee has no power to assess merits of compensation / complainant not required to establish case for compensation before Committee / “any substantive matter” in s1106b refers to Committee’s findings in determining unsatisfactory conduct that is more than minor or technical / findings on evidence and causation in relation to compensation not binding on Tribunal as they were outside Committee’s jurisdiction / appellant to file compensation claim

Application to review Registrar’s determination / Registrar determined not to pursue complaint as it only disclosed inconsequential matter / parties filed joint memorandum inviting Tribunal to reverse Registrar’s decision by consent, so Registrar may refer matter to Committee / Real Estate Agents Act 2008, s743a / HELD / application granted, Registrar’s decision reversed

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, s136 / Professional Rules 2012, r6.4, r10.7 / 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 s112 reviews, but should only be applied in context of limited grounds of review in Kacem / applicant had plenty of opportunity to provide evidence to Registrar / evidence credible but not sufficiently cogent to prove Registrar’s decision was wrong / Registrar has discretion to decide if complaint has sufficient evidence or would justify disciplinary response / Registrar not required to conduct investigation / has considered all the evidence provided by parties / no error of fact or law / applications dismissed, Registrar’s decision confirmed