INDUSTRY
Nadine Thomas, Industry Insights and Engagement Manager, REA
Moving at pace? Make sure you’ve got a signed Agency Agreement In a pressured residential property market, it is not surprising that we’re seeing vendors wanting to move at pace to make the most of the hot sales environment. As the licensed real estate professional supporting these eager clients, it’s important to take the time to make sure you’re meeting your regulatory obligations, even in a fast-moving transaction. Don’t bypass your obligations for a quick sale At the Real Estate Authority, we’ve received reports of licensees undertaking real estate agency work before an Agency Agreement has been signed. Licensees need to ensure they are acting under the authority of an Agency Agreement before offering or marketing a property. REA understands that, in a hot market, vendors may not wish to sign an Agency Agreement until a licensee has a prospective purchaser. However, it is important licensees take the requisite steps before finding a purchaser for a vendor client. Similar issues may arise if a licensee is acting as a buyer’s agent. Licensees should be aware that an Agency Agreement is required regardless of whether they are working as a vendor’s or buyer’s agent. When you enter into an Agency Agreement with someone who is selling a property, you
58
|
The Real Estate Institute of New Zealand
need to meet a number of requirements that are set out in the Real Estate Agents Act 2008 and the Code of Conduct. Protecting the interests of consumers in relation to real estate transactions is an important purpose of the legislative framework underpinning real estate agency work. Licensees must take the time to explain to prospective vendor clients important elements of the Agency Agreement they are entering into. This would include matters such as marketing costs and the basis for commission, and licensees should recommend that the client seek legal advice before signing any agreement. The legislation requires that the Agency Agreement must be signed by or on behalf of the vendor and the agent. You must supply a copy to the vendor within 48 hours of it being signed. You can’t show prospective buyers through a property until the agreement has been signed.
