INDUSTRY
Nadine Thomas, Industry Insights and Engagement Manager, REA
Supporting buyers and sellers to navigate a hot market –
MEETING YOUR OBLIGATIONS UNDER THE CODE OF CONDUCT Rising prices, low stock and hot competition for property are highlighting what real estate professionals have always known – property transactions can be high pressure and extremely stressful. How do you best support buyers and sellers to navigate a challenging property market? As a licensed real estate professional, the Code of Conduct is here to guide you.
Rule 9.7 – give buyers time to seek professional advice Soaring demand and competition for property is driving a sense of fear of missing out, or FOMO. Some buyers may feel they need to move quickly or face missing out, but there are many risks, and when issues occur with a real estate transaction, the financial and emotional impact can be significant and long-lasting. Before a prospective buyer signs a sale and purchase agreement, Rule 9.7 of the Code of Conduct says you must: • Recommend the person seek legal advice • Ensure they know they can seek other advice or information • Give them a reasonable opportunity to obtain that advice or information. Encourage potential buyers to seek advice early, so when it comes time to make an offer, they have all the information they need to make their property decision with
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The Real Estate Institute of New Zealand
confidence. That could include speaking to their financial advisor or mortgage broker, checking in with their KiwiSaver provider or insurance company, and getting a LIM and building inspection report.
Rule 9.2 – do not put unfair pressure on a buyer or seller Real estate licensees are qualified and experienced professionals who must exercise skill, care, competence, and diligence at all times when carrying out real estate agency work, according to Rule 5.1. The Code of Conduct also says you: • Must not engage in any conduct that places undue or unfair pressure on the seller or potential buyers (Rule 9.2) • Must act in good faith and deal fairly with all parties (Rule 6.2). An REA-commissioned survey of New Zealanders who had bought or sold in the 12 months to 30 June 2020 found 22% of
