Appraisal booklet by Paul Blackler

Introduction

Introducing

Paul Blacker

Our Mission Statement To deliver absolute value to New Zealand home buyers and sellers

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MIKE PERO

CHIEF EXECUTIVE

Mike Pero Real Estate Limited Licensed REAA (2008)

“ I stand behind the Mike Pero brand, my team and our services — expect more, pay less.”

My Personal Guarantee

History behind the brand

The purpose of these pages is to give you an insight into our organisation, our process and how we can best help you.

With more than two decades in the industry of real estate, finance and marketing, the Mike Pero Brand has been behind more than 100,000 property transactions.

All our people are experienced, qualified and licensed to carry out their assigned roles. We believe we have the very best customer proposition in the real estate industry but you should be the judge of that. In the meantime sit back, relax and enjoy our service.

Mike Pero Mortgages was founded in 1990 and today Mike continues to be the face behind the brand as well as the Chief Executive of Mike Pero Real Estate. Over the past five years since it started trading, Mike Pero Real Estate has become the fastest growing Real Estate company in New Zealand.

Chief Executive M 027 645 3737

P 03 423 9506 E mike.pero@mikepero.com

Introducing...

Paul Blackler & the Mike Pero Team

115

mikepero.com

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PAUL BLACKLER

“ I appreciate the importance of my role and I’m absolutely committed to meeting or exceeding your expectations.” — Paul Blackler Innovation, unrivalled service, and a dedication to our profession is what separates top agents from average ones. Paul is known for his highly committed results orientated approach to Real Estate sales. Acknowledged by his clients for his integrity and tenacity with a determination to achieve, Paul’s background in management, his New Zealand Diploma in Business, NZIM Diploma in Management and experience in Commercial & Residential Real Estate since 2006, ensure he is well established to provide outstanding results for you. Both ambitious and competitive, Paul enjoys new experiences and adventures with family and friends, including his wife Julie and daughter Lisa.

M 027 528 8865

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“I love the Mike Pero brand and the way they do their advertising; our marketing is considerably better than anybody else’s.” “Decide on Results” Contact Paul today!

P 0800 500 123 F 0800 FAX MPRE E paul.blackler@mikepero.com

Testimonials Paul and the team at Mike Pero were very helpful in keeping us fully informed on the marketing of our property and the interest generated by the open days. We were able to establish a realistic reserve price for our auction which was more than achieved. We found Paul very approachable and helpful with any queries we had. Thank you Paul Graham & Jean Pine Thank you very much for helping me sell my home â&#x20AC;&#x201C; in 4 days! Your knowledge and experience with insurance issues was invaluable. You were very professional, a pleasure to deal with and I would recommend you to my family and friends in a heartbeat. Sharlene Hosken Paul was fantastic in helping me purchase my first home. He made it completely hassle free and was

M 027 528 8865

available for me whenever I called on him. I would definitely recommend him for anyone wanting to buy or sell. Thanks Mel Tanner Paul had a professional attitude, provided us with regular updates, & listened & acted on our opinions, he has renewed our faith in real estate agents. Bill Hessell Paul has a manner that made it easy for us to connect - both in our purchase of our new house and the sale of our current home. Peter & Lynda Quaid We found Paul to be efficient & honest plus he kept us informed. Your prompt and professional service was much appreciated. Peter Forrest

P 0800 500 123 F 0800 FAX MPRE E paul.blackler@mikepero.com

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Process

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mikepero.com

How do we sell your property? You choose...

“ Selling your property is a very serious matter and it’s up to us to ensure that we get the very best result or outcome for you.” If it’s important to you, it’s important to us. We’ll always endeavour to do exactly what you want. Sometimes our experience and results may show you a different perspective on marketing and getting the best result for you. We’ll show you options that will be best suited to your home, your circumstances, and the current market. The industry of real estate is highly regulated. The Real Estate Agents Act (2008) aims to ensure your protection at all times. There’s a process for just about everything. Some of the documentation in the process may appear cumbersome but it’s all very important. Your agent is a licensed professional and knows what to do. Feel free to ask for more information at any time.

Our objectives • To provide you with the very best outcome for the sale of your property • Best possible sale price • Most cost effective marketing • Shortest possible time • Least disruption and no hassle to you

Communication Your agent should have a clear understanding of your communication expectations. Please specify if you prefer daily or weekly updates as and when required. We’ll do our best either way to ensure you know what you need to know.

Exclusive and sole agency Gives one agent or agency the exclusive right to market and arrange the sale of your property. Once signed with a sole agency agreement you should not sign another agreement with any other agent. If you do you may have to pay all the agents a commission, regardless of which one arranged the sale. Cancelling a sole agency agreement If the sole agency agreement is for a residential property and for a term longer than 90 days, the client or the agent can cancel the agreement after 90 days or at any time after that. Make sure you check what happens when the sole agency agreement is cancelled as some sole agency agreements become general agency agreements when cancelled – this means that you will also have to cancel the general agency agreement if you no longer want to work with that agency. When an agency agreement is cancelled your agent must give you a list of customers who, if you sell too, may entitle the agent to a commission. The 5pm window for cancelling a sole agency agreement If you change your mind after signing a sole agency agreement you can cancel it (in writing – by letter, fax or email) by 5pm on the first working day after you have been given a copy. However, if an agent carries out any work before the agreement is cancelled and that work results in the sale of the property after the agreement is cancelled then the agency agreement will be legally binding and you will have to pay that agent commission.

Pricing your property

It’s imperative that we go to the market at the right price. We have access to the most up to date information and comparative sales and we can tell you what your property might fetch. Ultimately ‘the market’ will tell us the value of your property. Meanwhile other considerations that your agent will discuss include:

• Type of sale process • Marketing • Preparing your property 6

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94% of Kiwis would trust the Mike Pero brand to sell their property

COLMAR BRUNTON

$ 94%

77%

76%

Most Kiwis consider the Mike Pero brand to be â&#x20AC;&#x2DC;trustworthyâ&#x20AC;&#x2122; and would list their property with the company if they chose to sell.

More than three quarters of those surveyed considered traditional agents were paid too much commission.

Would seriously consider using Mike Pero Real Estate to sell their property.

Colmar Brunton: Research carried out independantly in Jan 2011

Potential Savings

4.00% +gst Commission - Others

*standard commissions vary between brands, branches & agencies

2.95% +gst Commission - Mike Pero

You could save between $3,000 and $5,000 on a typical sale. Our standard fees are $490 + 2.95% up to $390,000* thereafter 1.95% + gst. Marketing costs are additional.

*Elsewhere $ Mike Pero $ Saving

Other Services

Mike Pero Mortgages, Insurance, Kiwi Saver, Personal Loans Your agent may be able to introduce you to other related services that may assist you during the process of selling your property. Mike Pero Real Estate is a related party to the other Mike Pero branded companies and potential customers should be aware that there may be some financial benefit for the customer and there may be some benefit for Mike Pero Real Estate Limited â&#x20AC;&#x201C; disclosure under the REAA (2008)

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Maximising the value of your property “You will get only one chance to launch your property to the market. How you do this is absolutely critical to maximise the return on your investment.” - Mike Pero Your marketing will springboard your property into the spotlight, so it’s imperative that the real estate company you choose gets it right. It’s a fact that the longer your property sits on the market, the lower the sale price will be. There is a direct link between a great marketing programme and a great result. To achieve a premium price for you, we need to create: • A perception that it is fairly priced • A degree of urgency • Competition amongst prospective buyers and • An emotional attachment to the purchasing of your home The more of each of these elements – the better for you. At Mike Pero Real Estate we have access to all the traditional marketing mediums that you would expect from a real estate company but we also believe we have some more innovative ways. We want your property to stand out, it needs to be in the limelight - we need to go the extra mile and

go to the market with trumpets, flags and the bells ringing! Some vendors suggest to real estate agents that they’ll “..see how it goes and they will throw some money at it if it doesn’t sell down the line.” This is the wrong approach – when it doesn’t sell, it’s telling prospective buyers that “…we’ve been on the market for weeks; it’s not selling, so here’s our desperate attempt to get your attention now.” Excuse the cliché, but the honest truth is that “a quick sale is a good sale”. Far too often, vendors are misled into thinking that if they get a good offer in the first 2-3 weeks they will get an even better offer if they hang on for another few weeks – this is wrong. In any market, whether it is gold, oil, shares or property, the more scarce the commodity, the greater the value. It’s the simple case of supply and demand. By law (Real Estate Agents Act, 2008), we are required to provide you good, sound marketing advice and we are required to advise you of all the options that could maximise the value of your property. For us not to accentuate the value of marketing would be us leading you down a path of false economy.

“If your property is in the range of $300,000-$600,000 we could be saving you between $3,000 - $6,000 or more...” The purpose of this message is to emphasise to you the importance of marketing. I am highly recommending that you listen carefully to the marketing options that your agent will present to you. Please don’t think that advertising is just another cost. Advertising is an investment and with our recommendations we believe it can only increase the value of your home. Consider that $1,000 might return an extra $2,000 to your final sale price, or it could mean an extra $5,000 or a quicker sale. If this was the case, I’m sure like me you’d have no hesitation in investing. While we cannot assume or guarantee anything, we do know for a fact that there is a direct relationship between a well structured marketing plan and the successful sale of a property. I’ve seen and heard recently of properties selling well above asking price, purely because of competition. Auctions have proven this point - it is the competition amongst buyers that drives the price up. Here it can be that fear of loss that makes bidders go well and beyond their earlier rational decisions about value. Given there is a good likelihood that our selling commission at Mike Pero is lower than our competitors, it should be easier to make the decision on how much you will invest into marketing. As a generalization if your home is in the range of $300-600,000 we could be saving you between $3,000 and $6,000 or more, depending on the fees of our competitors. Generally, home sellers are several thousand dollars better off with us when it comes to listing and selling, so even if you were only to consider a portion of that as your investment, chances are you’ll still be ahead. As a rule of thumb, most agents in New Zealand are of the view that you should consider investing between 0.5% and 1% of the asking price for your property in your marketing campaign. Views vary here and we are very open-minded and know that it must fit within your budget.

Investing more in your ‘launch to market’ can attract offers well beyond your expectations. At the same time, please don’t think we want to upsell you on any advertising because at Mike Pero Real Estate we don’t because we can make even the smallest investment go along way. Your real estate agent is totally informed on all the options. Professional photos, a larger ‘For Sale’ sign and being seen in the right publications will mean further investment, but I assure you it will only have a positive effect on your sale price. We’re as keen as you are to sell your property at the best possible price. Your agent at Mike Pero Real Estate is REAA Licensed, well qualified and trained to advise you on the best ways to market your property. It is very likely your agent will recommend one or a number of the following media options: • Property Press • A Daily Newspaper • An up-sized advert or feature on TradeMe • Magazine • A Local or community newspaper • Radio • Television – Extra commercials on TV One/TV3 Our team are always conscious of cost and will only invest where they believe it will benefit you. Remember … You’ll get one chance to make a first impression, so do it once and do it well. An under– investment in marketing can end up costing you more in the long run. The right marketing campaign will both save and make you money.

Where to from here?

“

THERE’S NO TIME LIKE THE PRESENT! WE CAN GO TO THE MARKET TODAY”

Research

Analyse

Design

We further research the market relative to your property.

We provide you with a CMA - Comparative Market Analysis.

We design a marketing programme specific to your property.

Company Auctioneers Conor Patton

Ian Keightley

Christchurch, Tauranga, Auckland 03 365 2910 • 022 062 0681 conor.patton@mikepero.com

Auckland 09 627 7222 • 021 968 108 ian.keightley@mikepero.com

Mike Broome

Mitchell Wilson

Auckland 021 790 665 mike.broome@mikepero.com

Nelson 03 547 2355 • 021 648 642 mitchell.wilson@mikepero.com

Ross Foreman Auckland 021 922 254 rossjan1@xtra.co.nz

Auction - a higher sale price in a lesser time frame? Very likely!

In the past home owners had misconceptions that auctions were not the way to sell a home – they’d lose control, cost too much or end up selling for a song. Today more and more homes are selling under the hammer and with this mindset sorted vendors are now realising their dreams of their asking price and beyond.

So why is this? Its simple – auctions are a highly effective way to capture an audience and to feed a group of anxious home buyers. It’s a fact that most people are motivated by either the fear of loss or opportunity to gain more than their share. You have a captive audience and competitive group of cash buyers. Unlike the traditional general sale process where there’s no time constraints or deadlines an auction brings everyone together at the one location where they’re up against the ‘next guy’ whose about to spoil their dreams. Emotions and that competitive streak will come to the forefront. Auctions are transparent and fair and with the very strict guidelines laid out by the Real Estate Agent’s Act it gives

everyone present equal opportunity to purchase the property. An experienced auctioneer can generally read his prospective buyers and will use every(moral) skill in his kit to play them against each other. He’ll use his one liners, his personality & humour to get every last dollar just before the hammer finally falls. Some people would suggest that TradeMe has changed the view us Kiwis have of auctions. For more than a decade now kiwis have been enjoying the thrill and success of auctions thanks to TradeMe.

Is it more expensive? No, with the exception of the auctioneer’s fee you’re looking at no extra costs. The marketing you’d be doing anyhow, no matter how you sell. The bonus with an auction is the marketing costs are for a limited time and generally end on the day of the auction. So what if it doesn’t sell under the hammer? In most cases if your property does not sell under the hammer there will be a chance for your agent to talk to the

bidders afterwards. Your reserve is generally a confidential discussion between you, your agent and the auctioneer held a day or so before the auction. Industry statistics confirm that more than 70% of all homes marketed by auction sell either under the hammer or the immediate few days after the auction, compared to only 20% marketed with a price. So if your agent suggests auction as a cost effective means to sell your home then be assured its because he or she is wanting it for the reasons we’ve just covered. It’s likely to be less cost, shorter time frames with a good chance of meeting or exceeding your expectations. So if you weren’t thinking an auction for your property maybe you’d be wanting to re-think. Mike Pero is Chief Executive of Mike Pero Real Estate Ltd REAA (2008). For more information about considering your home for auction phone 0800 500 123 or visit mikepero.com

â&#x20AC;&#x153; A few dollars in marketing today could prove to be thousands more in sale value.â&#x20AC;?

Marketing 1. An essential element of the sales process. 2. One chance to make a first impression. 3. Better advertising = better prospects = quicker sale.

4. A few dollars in marketing today could prove to be thousands more in sale value. 5. At Mike Pero, we provide a number of our resources complimentary and we prefer to invest wisely and cost effectively in other areas on your behalf.

Website Marketing Listings on: - TradeMe - realestate.co.nz - mikepero.com - hougarden.com - juwai.com We believe in being ahead of the market. We strongly urge you to consider investing in a well planned marketing campaign. Your agent can elaborate on a variety of options.

JUNE 2016

SALE FASTSTATS

NZ’S MOST VISITED PROPERTY SITE 1

UNIQUE AUDIENCE NUMBER OF INDIVIDUALS WHO VISITED TRADE ME PROPERTY VS REALESTATE.CO.NZ 1

544,000 JUNE

284,000

53%

TMP of realestate.co.nz’s audience visited Trade Me Property2

27%

ONLY

UNIQUE BROWSERS NUMBER OF DEVICES USED TO VISIT TRADE ME PROPERTY 3

SESSIONS NUMBER OF TIMES TRADE ME PROPERTY WAS VISITED3

2,482,323

8,293,140 Touch site 1,267,981

Touch site 631,806

UNIQUE BROWSERS BY PLATFORM

TMP143-27/07/16

AVERAGE SESSION DURATION (MINS) BY DEVICE3

Trade Me Property apps 144,083

Trade Me apps 361,797

Desktop site 1,344,637

13:28

1 Unique Audience, Nielsen Online Ratings (Real Estate/Apartments category), June 2016. 2 Duplicated Audience, Nielsen Online Ratings (Real Estate/Apartments category), June 2016. 3 Trade Me Property Google analytics site search data for June 2016. Note: Realestate.co.nz does not include nzfarms.co.nz or primecommercial.co.nz

of Trade Me Property’s audience visited realestate.co.nz2

Trade Me Property apps 908,786

SESSIONS BY PLATFORM

Trade Me apps 1,666,028

Desktop site 4,450,348

10:15

13:29

Property for Sale

Property for

Sale

LISTING OPTIONS

SUPER FEATURE Feature Listing benefits +

• Larger profile appearing above all other listings (on rotation). • One fee for 7 day super feature. • Plus, you get a feature listing (and all its benefits) for the life of the listing. • Average 1.8x more views, for more enquiries.1

Albany, North Shore City 6+ bedrooms, 4 bathrooms To be auctioned

Average 1.8x more views1 & 2.5x more buyer enquiries2

Stunning family home with room to grow

AGENCY LOGO HERE Sally Smith

$108.10 FOR 1 WEEK RENEWAL

than a Base Listing

FEATURE Base Listing benefits +

Classic in Wellington - Sold Sign a Must! - Auction

To be auctioned

Wellington Central

6 bedrooms, 2 bathroms

Agent Name Listed today

ID# DLN089

Listed today

Average 6 bedrooms, 2 bathroms 1.6x more 1 & 2x Agent views Name Agent Name Listed today ID# DLN089 ID# DLN089 more buyer enquiries2 Watchlist

Watchlist

Classic in Wellington - Sold Sign a Must! - Auction

• Highlighted listing. • Appear (in date order) above base listings. • One fee for the life of the listing. • Average 1.6x more views.1

Boosted (Featured listings only) $69.00

than a Base Listing

BASE LISTING

Sitting on a Goldmine

Enquiries over $950,000

Papakura, Auckland

4 bedrooms, 2 bathroms

Watchlist

Agent Name

Agent Name Listed today

1. 2. 3. 4.

ID# DLK695

Watchlist

Listed today

ID# DLK695

Watchlist

$ < RV 8 $45 ≥ $1 $ 5.1 0,00 32 450 0 * 0 .1 ,000 0*

Sitting on a Goldmine Enquiries over $950,000

• Over 500,000 visitors per month, meaning more potential buyers than any other property site.3 • #1 search channel for buyers.4 • More recent first buyers find their new property on Trade Me than any other single source.4 • One fee for the life of the listing.

Agent Name Listed today

Trade Me Statistics, March 2013 to February 2014 Trade Me Statistics, March 2013 to February 2014 based on email enquiry. Unique Audience, Nielsen Online Ratings, (Real Estate/Apartments category), May 2014 Perceptive survey of recent property buyers, June 2014

ID# DLK695

* All prices include GST.

*Promotion in addition to Base Listing. Savings indicative of Mike Pero pricing plan.

Premium Products

National average 1.8x more views 1 & 2.5x more buyer enquiries 1 than a base listing

The benefits of SUPER featuring your property include: • Larger profile appearing on carousel above all other relevant listings (on rotation). • You get a feature listing (and all its benefits) for the life of the listing. • For an additional cost you can renew the Super feature listing. If this isn’t an option, the listing will remain as a feature for the rest of it’s lifetime.

National average 1.6x more views 1 & 2x more buyer enquiries 1 than a base listing

The benefits of featuring your property include: • Your listing appearing at the top of search results & categories (in date order). • One fee for the lifetime of the feature listing. • Your listing stands out against standard listings with a distinctive yellow background, yellow border and bold title.

Interested?

Chat to your Agent today.

Rates Summary Mike Pero Pricing Plan BASE LISTING

Direct to Public

Agent Price

incl. GST

excl. GST / incl. GST

Property for Sale – RV < $450,000

$349

$74 / $85.10

Property for Sale – RV ≥ $450,000

$399

$114.86 / $132.10

FEATURE

Direct to Public

Agent Price

incl. GST

excl. GST / incl. GST

Property for Sale

$129

$71 / $81.65

SUPER FEATURE

Direct to Public

Agent Price

incl. GST

excl. GST / incl. GST

Property for Sale – first week

$299

$166 / $190.90

Property for Sale – 1 week renewal

$170

$94 / $108.10

Life of Listings

Super Feature Feature No Premiums

600

500

VIEWS

400

300

200

100

0 0

TMPSOT02/15

DAYS * Source: Trade Me Statistics, November 2014

Proudly working with:

Be seen by more buyers.

Showcase Appear above all listings on the carousel at the top of the page. It will also be showcased in surrounding suburbs.

Feature Appear before all standard listings in a gold box.

Refresh Push your feature listing back up to the top of the search results and get it stamped with â&#x20AC;&#x2DC;Updatedâ&#x20AC;&#x2122;. It may also be re-sent on saved search emails.

Promote your listing today, call 0800 732 536 or email: orders@realestate.co.nz

150

PER WEEK

UNTIL SOLD

PER REFRESH

Find us on:

A smarter way to promote property. Promote your property listings for even more impact by choosing the package that suits your timeframe and budget.

PLATINUM PACKAGE – 5 WEEKS OF PROMOTION Includes: 5 weeks of Showcase, Feature (until sold) and two Refreshes

12X

MORE VIEWS

WEEK 1

WEEK 2

WEEK 3

WEEK 4

WEEK 5

SHOWCASE

WITH ADVERTISING

SAVE $309

FEATURE

WITHOUT ADVERTISING

REFRESH

600

REFRESH

PREMIUM PACKAGE – 3 WEEKS OF PROMOTION Includes: 3 weeks of Showcase, Feature (until sold) and two Refreshes

400

MORE VIEWS WEEK 1

WEEK 2

WEEK 3

SHOWCASE

WITH ADVERTISING

SAVE $209

FEATURE

WITHOUT ADVERTISING

REFRESH

QUALITY PACKAGE – 3 WEEKS OF PROMOTION Includes: 2 weeks of Showcase, Feature (until sold) and one Refresh

MORE VIEWS WEEK 1

WEEK 2

WEEK 3

SHOWCASE

WITH ADVERTISING

SAVE $159

FEATURE

WITHOUT ADVERTISING

250

REFRESH

SMART PACKAGE – 3 WEEKS OF PROMOTION Includes: Feature (until sold) and two Refreshes

MORE VIEWS WEEK 1

WEEK 2

WITH ADVERTISING

FEATURE

WITHOUT ADVERTISING

REFRESH

WEEK 3

REFRESH

SAVE $60

Typically, promoting a listing delivers 50% greater rate of views, 25% greater rate of email enquiries and halves the time properties spend on the market when compared to a standard listing*.

Terms and conditions: All prices include GST and are correct as at 1/7/2016. Once purchased, products cannot be transferred or refunded. Increased views stated is indicative viewing performance of products when compared with a standard listing. Inclusion of refreshed and showcased properties in saved search email alerts is limited and chosen at random from within the users saved search criteria. For full terms and conditions, talk to your Account Manager. *Based on national residential sale listings on realestate.co.nz withdrawn between 1/1/2015 and 31/8/2015, correct as at 1/9/2015. Individual results may vary.

“

WE BELIEVE IN BEING AHEAD OF THE MARKET SO ENCOURAGE YOU TO CONSIDER OUR MARKETING OPTIONS.”

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mikepero.com

Signage It’s a billboard •

37% of all sales are influenced by “For Sale” signs

•

67% likelihood a sale will come from a buyer within 5km radius

Our signs are generally constructed professionally from an aluminum composite material (otherwise known as ACM). They are unique in many respects and stand out to gain maximum attention to your home. Nowadays people driving past see the sign and immediately go to a mobile device for more information. Whether you and your agent choose our 1.8m 3d sign or a picture sign, we believe you will have a point of difference with us.

Premium Sign ACM/3D 1.8mx400mm

Photo Sign 800x1200 (900x1200) Other variations as councils permit.

“

THE SIGN OF REAL ESTATE MOVING FAST.”

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mikepero.com

Exclusive to Mike Pero 18

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“Feature your property on TV.. ...for far less than you would ever think possible.” Here’s your chance to promote your property on television. The potential audience could be up to and beyond 40,000 viewers each time the advert goes to air. TV is the ultimate way to promote your property for sale and this is a unique chance to get exposure “second to none.”

“We were totally surprised by the low cost of advertising our home on TV so we went ahead with the TV advertising. The response was overwhelming and more than what we would ever had just advertising in print or on the web. We have no doubt this led to a higher sale price” — Steve & Marie

Buy one additional TV Commercial for only $295*

“TV advertising really gave great exposure to our home. The buyer ended up being someone who probably would never have known our property was for sale had our property not been advertised on TV. We were very happy with the result we got from the TV advertising.” — James & Michelle

TWO $590* THREE $850* A 15 second TV commercial produced elsewhere and played on TV One or TV3 could cost you in excess of $6000+gst *Prices including gst are as follows — 1 ad: ($295) $339.25 2 ads: ($590) $678.50 3 ads ($850) $977.50

“We thought it was a great way to advertise our home. It’s an amazing price. Our home sold in two weeks. The buyer saw it on TV.” — Jimmy & Lucy

Upgrade Marketing... ..Let Us Explain Further

We advertise in the above media outlets as well as local publications. Your agent will elaborate on the most appropriate options.

Have your property ﬁ nance assessed & it will be easier for prospective buyers to say “yes.” The Mike Pero brand was born in the home loan arena. It therefore makes perfect sense to arrange for a mortgage broker to provide all the available options beforehand to ensure your home has every likelihood of getting finance when the right buyer comes along. We’ll arrange this at no cost.

Mike Pero M ortgages CERTIFICAT E OF ASSESS M ENT

This is to cert

ify that,

Your Propert y

has been ass essed for hom e finance

Mike Pero M ortgages has assessed the with respect subject prop to the below erty for fund listed lendin amounts will ing g organisatio vary subject ns. Actual le to borrowers specific deta nding personal circ ils relating to umstances an the property This certifica d and the prop te is not a gu erty transact arantee of fin finance will ion. ance nor does be available it suggest that for the potent ial buyer.

Mike Pero; Dir ector Dated

26 June

ANZ, ASAP FIN ANCE, ASB, AV BAYWIDE, CR ANTI FINAN CE, CBS CRED ESSIDA CAPT IT UNION IAL, DBR, LIB NELSON BU ILDING SOCIE ERTY FINAN CIAL, MBG, TY, NZF, SOUT SOCIETY, SO HERN CROS UTHERN CR S BUILDING OSS FINANCE SOCIETY, SOV , SOUTHLAN ER D BUILDING THE CO-OPER EIGN HOME LOANS, STR ATA FUNDING ATIVE BANK , TSB, WESTP , SENTINEL, AC

For more inf orm

ation on this property conta ct

James Heath

— 03482669

4 — james.he

ath@mikepe

ro.co.nz

mikepero.com

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MIKE PERO FOUNDATION

With a little help from a friend... both young and old. Weâ&#x20AC;&#x2122;ve given special experiences to those with medical conditions and helped in the community. How can we help you? mikeperofoundation.com

On average our agents have over eight years experience

We believe that as a collective of agents under one real estate licence Mike Pero agents are the most experienced in the industry. Training continues throughout their real estate career 24

mikepero.com

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HQ Team

Mike Pero

Josephine Kinsella Juanita Cannon

Karla Leishman

Allaine Burkett

Dave Price

Chief Executive

General Manager Company Licensee

Compliance Officer & Legal Executive

Company Accountant

Training & Development Manager

Southern Regional Manager

Cynthia Sherwood

Ben Turner

Conor Patton

Mia McDonald

Graphic Designer

Anne Hunt

Keryn Thompson

Northern Regional Manager

Suzanne McMillan Emily Griffiths

Company Auctioneer

Assistant Accountant

Administration

Personal Assistant to Mike Pero

Leigh Candy

Michael Lee

Courtenay File

Emma Gibson

Media Manager

Administration

Accounts / VPA Marketing Accounts Administrator

Shelley Nisbet

Lynn Cawthorn

Portfolio Manager

Vendor Marketing

Contracts/Accounts

Glen Burgess

Tamsyn Isherwood Hazel Youngman

Accounts Administrator

Office Support

Administration

Our HQ team are based in Auckland and Christchurch.

Weâ&#x20AC;&#x2122;re growing across New Zealand Whangarei

Auckland

Tauranga/ Rotorua

Regional Office Auckland

Motueka, Blenheim, Nelson Wellington

North, Central and South Canterbury Regional Office Christchurch

Invercargill Current 22/2015

If itâ&#x20AC;&#x2122;s important to you, itâ&#x20AC;&#x2122;s important to us - Call us 24/7 Our free nationwide 0800 service is on call 24 hours, for you and potential buyers for your home.

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New Zealand Residential Property Agency Agreements Guide This guide has been prepared and approved by the Real Estate Agents Authority

www.reaa.govt.nz

0800 for REAA (0800 367 7322)

RESIDENTIAL PROPERTY AGENCY AGREEMENTS GUIDE

Important things to know:

1. 2. 3.

An agency agreement is a legally binding contract.

You can negotiate the terms of the agency agreement including the timeframe it covers, the amount of commission paid to the agent, and payment of any expenses. Agents must disclose to you any rebate, commission or discount they receive in connection with any work they do for you.

Be aware of the differences between a sole agency agreement and a general agency agreement.

Make sure you read and understand the agency agreement before signing it.

Consider seeking legal advice.

Introduction Selling your home can be a complex process and most people choose to use a real estate agent1 to help them. If you use an agent you will need to enter into a written agency agreement which forms the contract between you and the agent. This is a guide to the agency agreement that you will be asked to sign if you wish to sell residential property through an agent. This guide provides information about agency agreements, tells you where you can get more information, what to expect from your agent, and what to do if there is a problem. This guide only relates to the sale of residential property. This guide is just that - guidance. You should not rely on it for legal advice. It has been prepared by the Real Estate Agents Authority (REAA), a Crown entity established by the Real Estate Agents Act 2008. Your agent must provide you with a copy of this guide before you sign an agency agreement and ask you to confirm in writing that youâ&#x20AC;&#x2122;ve received it. The agent must also give you a copy of the New Zealand Residential Property Sale and Purchase Agreements Guide when presenting an offer from a buyer. If you require more information you can consult your lawyer and information is also available on the REAA website: www.reaa.govt.nz.

Real estate agent or agent are general terms that refer to an agent, branch manager or salesperson.

RESIDENTIAL PROPERTY AGENCY AGREEMENTS GUIDE

Who can carry out real estate work? Your agent must hold a current licence issued by the REAA to carry out real estate work You can ask to see proof of licence and you can also check the register of licensees at www.reaa.govt.nz to see if the person is licensed, and whether their conduct has resulted in recent disciplinary action.

Why do I need an agency agreement? If you want to use an agent you have to have an agency agreement. This gives the agent, and the agency they work for, the right to market your property for sale.

What is an agency agreement? An agency agreement is a legally binding contract between you and an agent. It sets out the terms and conditions on which you appoint an agent, what the agent will do for you, and what you will pay them. One agent may sign you up, but once youâ&#x20AC;&#x2122;ve listed your property, any agent in the company can try and sell your property. Make sure you read and understand the agency agreement before signing it.

What do I need to know before I sign an agency agreement? Before you sign the agent should give you the following information. A written market appraisal: This is the agentâ&#x20AC;&#x2122;s best estimate of the price they expect your property could be sold for, based on sales and prices for similar properties in your area or a similar area. How they recommend you sell your property: They should recommend the best way of selling your property and how they will market and advertise it. How they will be paid: What you will have to pay the agent (usually referred to as commission), when you will have to pay, and how this payment is calculated. Commissions can vary from one agent to another, so you may want to compare them. You can also negotiate on the amount or rate of commission to be paid. Commission is usually calculated as a percentage of the selling price, plus GST. The agent must:

â&#x20AC;˘ explain the formula that is being used

â&#x20AC;˘ provide you with an estimate in dollar terms of the commission you would have to pay if your property sold at the appraised price. Expenses: What expenses you will have to pay e.g. advertising costs that are not included in the commission. You can negotiate the terms of the agency agreement including the timeframe it covers, the amount of commission paid to the agent, and the payment of any expenses.

RESIDENTIAL PROPERTY AGENCY AGREEMENTS GUIDE

What can I expect to see in an agency agreement? While the layout and content of agency agreements vary from one agent to another, the following are some of the main things you should see. Details about the property for sale The address of your property. The chattels that are to be sold with your property e.g. whiteware, drapes, television aerial etc. Details about your property e.g. number of bedrooms, bathrooms, land area etc. You must ensure that any details you provide to the agent are accurate and factual or you may leave yourself open to legal action. Information about the parties to the agreement Your name, address and other contact details. The name and contact details of your lawyer. The name of the agent that is dealing with the marketing and sale of your property on a day-to-day basis. The agentâ&#x20AC;&#x2122;s business name and address. Confirmation that you have the authority to sign the agency agreement on behalf of all owners of the property If you are not the sole owner of the property, you must either ensure that all owners sign the agency agreement, or that you have the authority of all the other owners to sign for them. Confirmation you have been given a copy of this guide The Real Estate Agents Act 2008 requires an agent to give you a copy of the Residential Property Agency Agreements Guide before you sign an agency agreement, and to get your written confirmation that you have received the guide.

Appointment of the agent and details of what the agent is authorised to do The agency agreement appoints the named agent (usually a company) and details what they are authorised to do. For example: Put a ‘For Sale’ sign on your property. Advertise your property for sale at the price, in the way, and on the conditions you have authorised. Arrange inspection of your property by prospective buyers. Receive a deposit on your behalf. Deduct the agent’s commission from the deposit in the event that an offer becomes unconditional. The type of agency agreement and the term of the agreement The agency agreement will state whether this is a sole agency or general agency, the date on which the agency agreement starts, when it ends, and how to end the agreement. The term of an agency agreement is negotiable. A sole agency means that only that agency can carry out real estate agency work on the property identified in the agency agreement. What’s the difference between sole and general agency? A sole agency gives one agency the exclusive right to market and arrange the sale of your property. A general agency is not exclusive and you may employ other agencies and/or market your property privately.

There are some things to be aware of if you are considering a sole agency: You should not sign another agency agreement if you already have a sole agency in place. If you do you may have to pay all the agencies a commission, regardless of which agency actually arranged the sale. If you have second thoughts about a sole agency agreement after you have signed it, you can cancel the agreement by 5pm on the next working day after the day you receive a copy of the agreement. Cancellation must be in writing which includes fax or email.

RESIDENTIAL PROPERTY AGENCY AGREEMENTS GUIDE

If you sign a sole agency agreement that is for a term of more than 90 days, then either you or the agent can end the sole agency agreement after 90 days. This must be done in writing. In some agreements, the sole agency agreement becomes a general agency agreement when the sole agency is cancelled. This means you will also need to cancel the general agency agreement if you do not wish to continue with the agency. Method of sale and price of property The agency agreement will detail how you have agreed to sell your property. This could be by advertised price, negotiation, tender, or auction. The agency agreement will include a â&#x20AC;&#x2DC;listing priceâ&#x20AC;&#x2122; if your property is being marketed with an advertised price. The agency agreement will not include a listing price if your property is being marketed by negotiation, tender or auction. For more information, see the Tenders and Auctions Information Sheets available from www.reaa.govt.nz or by calling 0800 for REAA (0800 367 7322). Commission The agency agreement will include details of how the commission to be paid to the agent will be calculated and when it will be paid to the agent. It is important that you fully understand your rights and obligations concerning payment of commission. For more information, see the Commission Information Sheet available from www.reaa.govt.nz or by calling 0800 for REAA (0800 367 7322).

Advertising and marketing expenses The agency agreement may include separate advertising and marketing costs. You do not have to pay extra for advertising if you do not want to. Before you commit to paying extra advertising costs ask what advertising is provided without charge. As part of their service agents usually provide ‘free’ advertising which may include: Putting details of your property on the agent’s website. Putting details of your property on other real estate websites. Putting details of your property in real estate publications. Displaying a photo and details in the agent’s office. Providing a ‘For Sale’ sign outside your property. You need to consider the cost of extra advertising against the possible benefit. The agent should prepare a detailed marketing plan and explain why this extra cost is worth it. Remember, you have to pay for extra advertising even if your property does not sell. For more information, see the Advertising Information Sheet available from www.reaa.govt.nz or by calling 0800 for REAA (0800 367 7322). Disclosure of rebates, discounts or commissions that the agent may receive If an agent gets a discount, rebate or commission on any services that they arrange for you and that you are paying for, they have to tell you about this. For example an agent may receive a discount on the cost of advertising your property in a newspaper. This disclosure is done in a form that must be included in the agency agreement. The form must either show the estimated amount of rebate, discount or commission, and its source, or a statement that the agent will not be receiving any rebates, commissions or discounts.

RESIDENTIAL PROPERTY AGENCY AGREEMENTS GUIDE

While the agent is not required by law to share these rebates, commissions or discounts with you, you may wish to negotiate a share with the agent. For more information, see the Disclosure of Rebates, Discounts and Commissions Information Sheet available from www.reaa.govt.nz or by calling 0800 for REAA (0800 367 7322).

Remember you can ask questions, take independent advice, talk to more than one agent, and negotiate on commission, expenses, and services.

What happens when I get an offer? When someone makes an offer to buy your property, your agent will bring you the offer in the form of a written sale and purchase agreement. Before you sign any sale and purchase agreement you must be given a copy of the Residential Property Sale and Purchase Agreements Guide. You are advised not to sign anything until you have read and understood this guide and have shown the sale and purchase agreement to your lawyer.

What if thereâ&#x20AC;&#x2122;s a problem? If you are concerned about the behaviour of an agent, you should discuss any concerns you have with the agent or their manager. Agents are required to have in-house complaints resolution procedures. If this does not work or if you do not wish to go through this process you can contact the REAA. The REAA has a number of ways it can help with your concerns. This includes sending the agent a compliance advice letter, arranging alternative dispute resolution or processing the matter as a complaint. When you contact the REAA they will help you identify the best way of dealing with your concern. More information on how the REAA can help you can be found at www.reaa.govt.nz or by calling 0800 for REAA (0800 367 7322). 8

You can get more information from... There are several places you can go for help and advice including: The Real Estate Agents Authority (REAA) at www.reaa.govt.nz or call 0800 for REAA (0800 367 7322). The REAA can provide information and assistance on a wide range of issues and is responsible for dealing with concerns about real estate agents. Your lawyer. Community Law Centres www.communitylaw.org.nz. Citizens Advice Bureau www.cab.org.nz. Ministry of Consumer Affairs www.consumeraffairs.govt.nz. NZ Law Society Property Section www.propertylawyers.org.nz. Consumer Build www.consumerbuild.org.nz.

Real Estate Agents Authority PO Box 25371, Wellington 6146 Phone: 0800 for REAA (0800 367 7322) or (04) 471 8930 Fax: 04 815 8468 Email: info@reaa.govt.nz Website: www.reaa.govt.nz

To the best of the Real Estate Agents Authority knowledge, the information in this guide is accurate at the date shown below. However, the requirements on which this information is based can change at any time and the most up-to-date information is available at www.reaa.govt.nz [Version 1.1, 1 July 2011].

New Zealand Residential Property Sale and Purchase Agreements Guide This guide has been prepared and approved by the Real Estate Agents Authority

www.reaa.govt.nz

0800 for REAA (0800 367 7322)

RESIDENTIAL PROPERTY SALE AND PURCHASE AGREEMENTS GUIDE

Important things to know:

A sale and purchase agreement is a legally binding contract.

The real estate agent is working for the seller of the property, but must treat the buyer fairly.

You need to understand the difference between a conditional and an unconditional agreement.

You can negotiate the conditions you require in a sale and purchase agreement.

Make sure you read and understand the sale and purchase agreement before signing it.

It is recommended that you get your lawyer to check the sale and purchase agreement before you sign it.

Introduction Buying or selling a home is one of the biggest financial commitments you will ever make. There are several relatively complicated stages to negotiate and there are a number of things to look out for. When you are buying or selling residential property you should always have a written sale and purchase agreement. This is the legal document that forms the contract between the buyer and the seller. This is a guide to the sale and purchase agreement that you will be asked to sign if you wish to buy or sell residential property. This guide provides information about sale and purchase agreements, tells you where you can get more information, what to expect from a real estate agent1 and what to do if there is a problem. This guide only relates to the sale of residential property. This guide is just that â&#x20AC;&#x201C; guidance. You should not rely on it for legal advice. Itâ&#x20AC;&#x2122;s been prepared by the Real Estate Agents Authority (REAA), a Crown entity established by the Real Estate Agents Act 2008.

Real estate agent or agent are general terms that refer to an agent, branch manager or salesperson.

RESIDENTIAL PROPERTY SALE AND PURCHASE AGREEMENTS GUIDE

Whether you are a buyer or a seller, the agent must provide you with a copy of this guide before you sign a sale and purchase agreement, and ask you for written acknowledgement that you have received it. If you require more information, you can consult your lawyer. Information is also available on the REAAâ&#x20AC;&#x2122;s website: www.reaa.govt.nz.

Why do I need a sale and purchase agreement? A sale and purchase agreement provides certainty to both the buyer and the seller as it sets out in writing all the agreed terms and conditions. It is a legally binding contract.

Can I negotiate? The seller and buyer can negotiate, through the agent, on price and conditions until they both reach agreement. Important things to know: You should have a written sale and purchase agreement. Always read the sale and purchase agreement before signing it. Have your lawyer check the sale and purchase agreement before you sign it. Both the buyer and seller can negotiate changes to the price and conditions. A sale and purchase agreement is a legally binding contract.

The sale and purchase agreement Your agent will probably use the Auckland District Law Society and Real Estate Institute of New Zealand form (the ADLS form). Your sale and purchase agreement should include the following: The name(s) of the seller(s) and buyer(s). The address of the property. The type of title (freehold, leasehold etc.). The chattels that are to be sold with the property (e.g. whiteware, drapes, television aerial etc.). The price. The rate of interest that the buyer must pay on any overdue payments. Any deposit that the buyer must pay. Any conditions the buyer wants fulfilled before the contract is agreed. The date on which the agreement will become unconditional if there are conditions. The settlement date (the date the buyer pays the remainder of the amount for the property, usually the day when the buyer can move into the property).

RESIDENTIAL PROPERTY SALE AND PURCHASE AGREEMENTS GUIDE

Conditions in the document The buyer will usually want to have some or all of the following conditions fulfilled before the contract is agreed: Title search – this is done by the buyer’s lawyer to check who the legal owner of the property is and to see if anyone else has any claim over the property. Finance – this refers to the buyer arranging payment, normally a loan, by a specified date. Valuation report – normally required by a lender, this report is an estimate of the property’s worth on the current market. Land Information Memorandum (LIM) report – provided by the local council, this report provides information on things such as rates, building permits and consents, drainage and planning. Building inspection report – these help determine how sound the building is and what might need to be repaired. Engineer’s report – similar to the above but more focused on the section and structure of the property. Sale of another home – the buyer may need to sell their home in order to buy another. General or standard clauses A sale and purchase agreement also includes clauses that set out general obligations and conditions. It helps to understand what these mean as you will need to comply with them. Examples may include: Access rights – what access the buyer can have to inspect the property before settlement. Default by buyer – the buyer may have to compensate the seller e.g. interest payments. Default by the seller – the seller may have to compensate the buyer e.g. accommodation costs. Insurance – makes sure the property remains insured until the settlement date and outlining what will happen if any damage does occur. Your lawyer will explain these clauses.

When does the buyer pay the deposit and the full amount? When the seller and buyer have agreed on all aspects of the sale and purchase agreement, any deposit is usually paid to the real estate agent by the buyer. This money is initially held in the agent’s trust account. The agent usually takes their commission from the deposit when the contract becomes unconditional. This is agreed between the seller and the agent as set out in the agency agreement 2. The seller should make sure that the deposit is large enough to cover the agent’s commission. The buyer pays the remainder of the amount for the property on the day of settlement, usually through their lawyer. The settlement day is usually the date when the buyer can move into the property. Before the sale and purchase agreement becomes unconditional and if the sale doesn’t go ahead because some of the conditions haven’t been met, the buyer may be entitled to have the deposit refunded in full. However, once the offer becomes unconditional you won’t be able to get your deposit back if you change your mind for any reason.

Refer to the Real Estate Agents Authority’s New Zealand Residential Property Agency Agreement Guide.

RESIDENTIAL PROPERTY SALE AND PURCHASE AGREEMENTS GUIDE

What is the difference between a conditional and an unconditional agreement? Conditional refers to the sale and purchase agreement having a set of conditions that are to be met, such as the buyerâ&#x20AC;&#x2122;s current house being sold, a building inspection being carried out, or finance being secured. Unconditional refers to when all conditions in the sale and purchase agreement have been met and the transaction is ready to proceed to a change of ownership.

Can I cancel the agreement if I change my mind? You cannot cancel a sale and purchase agreement just because you have had second thoughts about buying or selling the property concerned. In general, once you have signed a sale and purchase agreement and the conditions set out in it have been met, you will have to go ahead with the sale/purchase of the property.

What can I expect from an agent? The agent works for and is paid by the seller. The agent must therefore carry out the sellerâ&#x20AC;&#x2122;s instructions (as set out in the agency agreement) and act in the interests of the seller.

Agents also have clear responsibilities to buyers even though they are representing the seller. When you are buying a property, ask the agent questions. Be specific about what you want to know. All agents are bound by the Code of Professional Conduct and Client Care, issued by the REAA. Under the Code, agents have to deal fairly and honestly with all parties.

A copy of the Code of Professional Conduct and Client Care is available from www.reaa.govt.nz or by calling 0800 for REAA (0800 367 7322).

What if my agent or someone related to them wants to buy the property? If your agent, or anyone related to them, wants to buy your property, they must get your written consent to do this. More information on this situation can be found in the Conflict of Interest Information Sheet, available from www.reaa.govt.nz or by calling 0800 for REAA (0800 367 7322). It is important to consult your lawyer throughout the buying and selling process.

RESIDENTIAL PROPERTY SALE AND PURCHASE AGREEMENTS GUIDE

Who pays the agent? Real estate agents in New Zealand work on behalf of sellers and it is the sellers who pay the agents. An agent who is marketing a property on behalf of a seller cannot ask a buyer to pay for their services. The agent is acting for the seller and does not have the same duty to a buyer as they do to the seller.

What is a buyers’ agent? Buyers’ agents are common in some other countries. They are agents who are employed by buyers to locate properties and sometimes to negotiate purchases on the buyer’s behalf. If you employ a buyers’ agent you should still have a written agency agreement and will have to pay for their services. More information on buyers’ agents can be found in the Buyers’ Agent Information Sheet, available from www.reaa.govt.nz or by calling 0800 for REAA (0800 367 7322).

What if there’s a problem? If you are concerned about the behaviour of an agent, you should discuss any concerns you have with the agent or their manager. Agents are required to have in-house complaints resolution procedures. If this does not work or if you do not wish to go through this process, you can contact the REAA. The REAA has a number of ways it can help with your concerns. This includes sending the agent a compliance advice letter, arranging alternative dispute resolution or processing the matter as a complaint. When you contact the REAA they will help you identify the best way of dealing with your concern. More information on how the REAA can help you can be found at www.reaa.govt.nz or by calling 0800 for REAA (0800 367 7322).

Real Estate Agents Authority PO Box 25371, Wellington 6146 Phone: 0800 for REAA (0800 367 7322) or (04) 471 8930 Fax: 04 815 8468 Email: info@reaa.govt.nz Website: www.reaa.govt.nz

To the best of the Real Estate Agents Authorityâ&#x20AC;&#x2122;s knowledge, the information in this guide is accurate at the date shown below. However, the requirements on which this information is based can change at any time and the most up-to-date information is available at www.reaa.govt.nz [Version 1.1, 1 July 2011].

Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012

Contents

Page

Title

Commencement

Scope and objectives

Interpretation

Standards of professional competence

Standards of professional conduct

Duty to report misconduct or unsatisfactory conduct

Duties and obligations of agents

Client and customer care

10 Client and customer care for sellersâ&#x20AC;&#x2122; agents

11 Client and customer care for buyersâ&#x20AC;&#x2122; agents

12 Information about complaints

13 Revocation

Rules These Rules make up the Real Estate Agents Authority code of professional conduct and client care. The Rules were made by the Authority1 and notified in the New Zealand Gazette. The rules set minimum standards of conduct and client care that licensees are required to meet when carrying out real estate agency work and dealing with clients.

Pursuant to section 14 of the Real Estate Agents Act 2008, the Real Estate Agents Authority, with the approval of the Minister of Justice given in accordance with section 17 of that Act, and after consultation in accordance with section 16 of that Act, makes the following rules. 1

Professional Conduct and Client Care Rules 2012

Title

These rules are the Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012.

2 Commencement These rules come into force on 8 April 2013.

3 Scope and objectives 3.1

These practice rules setting out a code of professional conduct and client care have been prepared by the Real Estate Agents Authority (the Authority). They constitute the Professional Conduct and Client Care Rules required by section 14 of the Real Estate Agents Act 2008.

3.2

These practice rules set out the standard of conduct and client care that agents, branch managers, and salespersons (collectively referred to as licensees) are required to meet when carrying out real estate agency work and dealing with clients.

3.3

These practice rules are not an exhaustive statement of the conduct expected of licensees. They set minimum standards that licensees must observe and are a reference point for discipline. A charge of misconduct or unsatisfactory conduct may be brought and dealt with despite the charge not being based on a breach of any specific rule.

3.4

These practice rules must be read in conjunction with the Act and regulations, and do not repeat duties and obligations that are included in the Act or regulations.

4 Interpretation 4.1

In these rules,â&#x20AC;&#x201D; - Act means the Real Estate Agents Act 2008. - customer means a person who is a party or potential party to a transaction and excludes a prospective client and a client. - prospective client means a person who is considering or intending to enter into an agency agreement with an agent to carry out real estate agency work. - regulations means regulations made pursuant to the Act.

4.2

Unless the context otherwise requires, terms used in these rules have the same meaning as in the Act.

5 Standards of professional competence 5.1

A licensee must exercise skill, care, competence, and diligence at all times when carrying out real estate agency work.

5.2

A licensee must have a sound knowledge of the Act, regulations, rules issued by the Authority (including these rules), and other legislation relevant to real estate agency work.

6 Standards of professional conduct 6.1

A licensee must comply with fiduciary obligations to the licenseeâ&#x20AC;&#x2122;s client.

6.2

A licensee must act in good faith and deal fairly with all parties engaged in a transaction.

6.3

A licensee must not engage in any conduct likely to bring the industry into disrepute.

6.4

A licensee must not mislead a customer or client, nor provide false information, nor withhold information that should by law or in fairness be provided to a customer or client.

7 Duty to report misconduct or unsatisfactory conduct 7.1

A licensee who has reasonable grounds to suspect that another licensee has been guilty of unsatisfactory conduct1 may make a report to the Authority.

7.2

A licensee who has reasonable grounds to suspect that another licensee has been guilty of misconduct2 must make a report to the Authority.

7.3

A licensee must not use, or threaten to use, the complaints or disciplinary process for an improper purpose.

1 2

Unsatisfactory conduct is defined in the Act: see section 72. Misconduct is defined in the Act: see section 73.

Professional Conduct and Client Care Rules 2012

7.4

If a licensee learns that a person is committing an offence by undertaking real estate agency work without a licence, the licensee must immediately report the matter to the Authority.

8 Duties and obligations of agents Promoting awareness of rules 8.1

An agent who is operating as a business must display these rules prominently in the public area of each office or branch, and provide access to them on every website maintained by the agent for the purposes of the business.

8.2

A licensee must make these rules available to any person on request.

Supervision and management of salespersons 8.3

An agent who is operating as a business must ensure that all salespersons employed or engaged by the agent are properly supervised and managed.3

Ensuring knowledge of regulatory framework and promoting continuing education 8.4 An agent who is operating as a business must ensure that all licensees employed or engaged by the agent have a sound knowledge of the Act, regulations, rules issued by the Authority (including these rules), and other legislation relevant to real estate agency work. 8.5

An agent who is operating as a business must ensure that licensees employed or engaged by the agent are aware of and have the opportunity to undertake any continuing education required by the Authority.

9 Client and customer care General 9.1

A licensee must act in the best interests of a client and act in accordance with the clientâ&#x20AC;&#x2122;s instructions unless to do so would be contrary to law.

9.2

A licensee must not engage in any conduct that would put a prospective client, client, or customer under undue or unfair pressure.

The Act defines what is meant by a salesperson being properly supervised and managed by an agent or a branch manager for the purposes of section 50 of the Act: see section 50(2). 3

9.3

A licensee must communicate regularly and in a timely manner and keep the client well informed of matters relevant to the client’s interest, unless otherwise instructed by the client.

9.4

A licensee must not mislead customers as to the price expectations of the client.

9.5

A licensee must take due care to— (a) ensure the security of land and every business in respect of which the licensee is carrying out real estate agency work; and (b) avoid risks of damage that may arise from customers, or clients that are not the owner of the land or business, accessing the land or business.

9.6

Unless authorised by a client, through an agency agreement, a licensee must not offer or market any land or business, including by putting details on any website or by placing a sign on the property.

Agency agreements and contractual documents

9.7

Before a prospective client, client, or customer signs an agency agreement, a sale and purchase agreement, or other contractual document, a licensee must— (a) recommend that the person seek legal advice; and (b) ensure that the person is aware that he or she can, and may need to, seek technical or other advice and information; and (c) allow that person a reasonable opportunity to obtain the advice referred to in paragraphs (a) and (b).

9.8

A licensee must not take advantage of a prospective client’s, client’s, or customer’s inability to understand relevant documents where such inability is reasonably apparent.

9.9

A licensee must not submit an agency agreement or a sale and purchase agreement or other contractual document to any person for signature unless all material particulars have been inserted into or attached to the document.

9.10

A licensee must explain to a prospective client that if he or she enters into or has already entered into other agency agreements, he or she could be liable to pay full commission to more than 1 agent in the event that a transaction is concluded.

Professional Conduct and Client Care Rules 2012

9.11

On notice of cancellation of an agency agreement being given or received by the agent under the agreement, the agent must advise the client, in writing, of the name of each customer (if any) in respect of whom the agent would claim a commission, were the customer to conclude a transaction with the client.

9.12

An agent must not impose conditions on a client through an agency agreement that are not reasonably necessary to protect the interests of the agent.

9.13

When authorised by a client to incur expenses, a licensee must seek to obtain the best value for the client.

Conflicts of interest 9.14

A licensee must not act in a capacity that would attract more than 1 commission in the same transaction.

9.15

A licensee must not engage in business or professional activity other than real estate agency work where the business or activity would, or could reasonably be expected to, compromise the discharge of the licenseeâ&#x20AC;&#x2122;s obligations.

Confidentiality 9.16

A licensee must not use information that is confidential to a client for the benefit of any other person or of the licensee.

9.17

A licensee must not disclose confidential personal information relating to a client unlessâ&#x20AC;&#x201D; (a) the client consents in writing; or (b) disclosure is necessary to answer or defend any complaint, claim, allegation, or proceedings against the licensee by the client; or (c) the licensee is required by law to disclose the information; or (d) the disclosure is consistent with the information privacy principles in section 6 of the Privacy Act 1993.

9.18 Where a licensee discloses information under rule 9.17(b), (c) or (d), it may be only to the appropriate person or entity and only to the extent necessary for the permitted purpose.

10 Client and customer care for sellers’ agents 10.1

This rule applies to an agent (and any licensee employed or engaged by the agent) who is entering, or has entered, into an agency agreement with a client for the grant, sale, or other disposal of land or a business.

Appraisals and pricing 10.2

An appraisal of land or a business must— (a) be provided in writing to a client by a licensee; and (b) realistically reflect current market conditions; and (c) be supported by comparable information on sales of similar land in similar locations or businesses.

10.3

Where no directly comparable or semi-comparable sales data exists, a licensee must explain this, in writing, to a client.

10.4

An advertised price must clearly reflect the pricing expectations agreed with the client.

Relationship between prospective client’s choices about how to sell and licensee’s benefits 10.5

Before a prospective client signs an agency agreement, the licensee must explain to the prospective client how choices that the prospective client may make about how to sell or otherwise dispose of his or her land or business could impact on the individual benefits that the licensee may receive.

Agency agreements 10.6

Before a prospective client signs an agency agreement, a licensee must explain to the prospective client and set out in writing— (a) the conditions under which commission must be paid and how commission is calculated, including an estimated cost (actual $ amount) of commission payable by the client, based on the appraisal provided under rule 10.2: (b) when the agency agreement ends; (c) how the land or business will be marketed and advertised, including any additional expenses that such advertising and marketing will incur: (d) that the client is not obliged to agree to the additional expenses referred to in rule 10.6(c): (e) that further information on agency agreements and contractual documents is available from the Authority and how to access this information.

Professional Conduct and Client Care Rules 2012

Disclosure of defects 10.7

A licensee is not required to discover hidden or underlying defects in land but must disclose known defects to a customer. Where it would appear likely to a reasonably competent licensee that land may be subject to hidden or underlying defects4, a licensee must eitherâ&#x20AC;&#x201D; (a) obtain confirmation from the client, supported by evidence or expert advice, that the land in question is not subject to defect; or (b) ensure that a customer is informed of any significant potential risk so that the customer can seek expert advice if the customer so chooses.

10.8

A licensee must not continue to act for a client who directs that information of the type referred to in rule 10.7 be withheld.

Advertising and marketing 10.9

A licensee must not advertise any land or business on terms that are different from those authorised by the client.

Contractual documentation and record keeping 10.10 A licensee must submit to the client all offers concerning the grant, sale, or other disposal of any land or business, provided that such offers are in writing. 10.11 If a licensee is employed or engaged by an agent, the licensee must provide the agent with a copy of every written offer that the licensee submits. 10.12 An agent must retain, for a period of 12 months, a copy of every written offer submitted. This rule applies regardless of whether the offer was submitted by the agent or by a licensee employed or engaged by the agent and regardless of whether the offer resulted in a transaction.

For example, houses built within a particular period of time, and of particular materials, are or may be at risk of weathertightness problems. A licensee could reasonably be expected to know of this risk (whether or not a seller directly discloses any weathertightness problems). While a customer is expected to inquire into risks regarding a property and to undertake the necessary inspections and seek advice, the licensee must not simply rely on caveat emptor. This example is provided by way of guidance only and does not limit the range of issues to be taken into account under rule 10.7. 4

11 Client and customer care for buyers’ agents

11.1

This rule applies where an agency agreement authorising an agent to undertake real estate agency work for a client in respect of the purchase or other acquisition of land or a business on the client’s behalf (a buyer’s agency agreement) is being entered into, or has been entered into.

11.2

Before a prospective client signs a buyer’s agency agreement, a licensee must explain to the prospective client and set out in writing— (a) the conditions under which commission must be paid and how commission is calculated, including an estimated cost (actual $ amount) of commission payable by the client, based on the average of the estimated price range of the land or business that the client is seeking to purchase: (b) when the agency agreement ends: (c) any additional services that the licensee will provide, or arrange for the provision of, on the client’s behalf and the expenses relating to those services payable by the client: (d) that the client is not obliged to agree to the additional expenses referred to in rule 11.2(c): (e) that further information on agency agreements and contractual documents is available from the Authority and how to access this information.

11.3

A licensee must not undertake real estate agency work with customers, or other licensees, on terms that are different from those that are authorised by the client on whose behalf the licensee is carrying out real estate agency work.

11.4

A licensee must submit all offers that the licensee is instructed by the client to make concerning the purchase or acquisition of any land or business, provided that such offers are in writing.

11.5

If a licensee is employed or engaged by an agent, the licensee must provide the agent with a copy of every written offer that the licensee submits.

11.6

An agent must retain, for a period of 12 months, a copy of every written offer submitted. This rule applies regardless of whether the offer was submitted by the agent or by a licensee employed or engaged by the agent and regardless of whether the offer resulted in a transaction.

Professional Conduct and Client Care Rules 2012

12 Information about complaints 12.1

An agent must develop and maintain written in-house procedures for dealing with complaints and dispute resolution. A copy of these procedures must be available to clients and consumers.

12.2

A licensee must ensure that prospective clients and customers are aware of these procedures before they enter into any contractual agreements.

12.3

A licensee must also ensure that prospective clients, clients, and customers are aware that they may access the Authorityâ&#x20AC;&#x2122;s complaints process without first using the in-house procedures; and that any use of the in-house procedures does not preclude their making a complaint to the Authority.

12.4

A licensee employed or engaged by an agent must advise the agent within 10 working days of becoming aware ofâ&#x20AC;&#x201D; (a) any complaint made to the Authority against them, the decision of the Complaints Assessment Committee made in respect of that complaint, and any order made by the Committee in respect of that complaint; and (b) if the matter proceeds to the Tribunal, the decision of the Tribunal in respect of the matter, and any order made by the Tribunal in respect of the matter.

12.5

If a licensee was employed or engaged by a different agent at the time of the conduct relevant to the complaint referred to in rule 12.4, the licensee must also provide the information referred to in rule 12.4(a) and (b) to that agent within 10 working days of becoming aware of the complaint.

13 Revocation The Real Estate Agents Act (Professional Conduct and Client Care) Rules 2009 (SR 2009/304) are revoked. Issued under the authority of the Acts and Regulations Publication Act 1989. Date of notification in Gazette: 13 December 2012 These rules are administered by the Real Estate Agents Authority.

mikepero.com

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Complaints procedure Mike Pero Real Estate is committed to handling any customer complaints fairly, professionally and expeditiously. In accordance with Rule 12.1 Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012

Introduction All licensed real estate agents are required to have a written in-house complaints and dispute resolution procedure which is set out below. You do not have to use our complaints and resolution procedure. You may make a complaint directly to the Real Estate Agents Authority at any time. You can make a complaint to the Real Estate Agents Authority even if you choose to use our procedures.

In-house Complaints and Dispute Resolution Procedures

10 working days with a response to your complaint. Should we consider that the complaint will take longer to resolve than 10 working days we will advise you of the expected time frame. As part of that response we might ask you to meet with members of our team to discuss the complaint and attempt to reach a resolution. STEP 3: If we are unable to come to an agreed resolution, we will provide you with a written proposal to resolve your complaint, or we may appoint a mediator to resolve the situation. STEP 4: If you do not accept our proposal, please try and advise us in writing within five working days. You can, of course, suggest another way of resolving your complaint.

Our complaints and dispute resolution procedures are designed to provide a simple and personalised process for resolving any complaint you may have.

STEP 5: If we accept your preferred resolution, we will attempt to implement that resolution as soon as possible. If we decline your preferred resolution, we may invite you to mediate the dispute.

STEP 1: Call us and speak to our Regional Manager 0800 500 123, explain who you are complaining about, and what your concerns are. You can then let us know how you would like to proceed in regards to your complaint.

STEP 6: If we agree to mediate the complaint but donâ&#x20AC;&#x2122;t settle the complaint at mediation, or we do not agree to mediate the dispute, then that will be the end of our process.

STEP 2: We may ask you to put your complaint in writing so that we can investigate it. Our email address is customerrelations@mikepero.com. We will need time to talk to the team members involved. Please note your complaint may need to be disclosed to the managing director, the general manager and other relevant people to best assist in resolving your complaint. We promise to come back to you within

Remember: You can still make a complaint to the Real Estate Agents Authority in the first instance and, even if you use these procedures, you can still make a complaint to the Real Estate Agents Authority at any time. The Real Estate Agents Authority c/o PO Box 25-371 Wellington 6146 New Zealand Phone 0800 for REAA or 0800 367 7322