INDUSTRY
Nadine Thomas, Head of Engagement, Insights and Education, REA
No surprises
WHY GETTING TO KNOW A PROPERTY BEFORE LISTING IS ALWAYS WORTH THE TIME AND EFFORT
Between a client’s eagerness to ‘get the property on the market’, your natural desire to progress towards sale, and general workload in a busy environment, there can be pressure to move swiftly through the appraisal and listing process. But, taking the time to be careful and thorough with your due diligence from the outset is not only an obligation (under rule 5.1 of the Code of Conduct), it can save you time and trouble in the long run by preventing avoidable issues in the first place.
Many of the complaints we receive at REA are from consumers unhappy that they have not been provided with essential or accurate information about a property by the listing licensee. Typically, these issues result from oversight rather than intention to mislead. However, it’s important to note this can still constitute unsatisfactory conduct. When listing a property, the onus is on the licensee to thoroughly research and understand what you are selling. Your client and potential buyers are relying on you to be knowledgeable about the property’s details. Getting it right at the start of the sale process by ensuring the property’s details are accurately reflected in the agency agreement is critical because of the flow-on effects that can arise if this isn’t done. Mistakes or oversights at listing time can lead to issues such as advertising being deemed misleading, or potential buyers discovering compliance issues that weren’t identified and disclosed upfront.
Don’t rely — verify Referring to your agency’s practice guidelines will help ensure you follow their recommended approach to appraising and listing a property. It’s also key to understand the stumbling blocks that can catch you out during this process, and of which you need to be aware.
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The Real Estate Institute of New Zealand
Remember that licensees are expected to be proactive in gathering and verifying the essential information about a property, and if necessary, to dig deeper when something doesn’t seem quite right. Clients are naturally a key source of information about their property. However, our research indicates that a significant proportion of clients may deliberately withhold information from licensees, or unintentionally provide inaccurate information (e.g., misremembering when renovations were carried out, which can affect compliance obligations). Our research also shows that many clients rely on the licensee as the expert to help them navigate their disclosure obligations. For this reason, key property information supplied by clients should always be verified through documentation, direct inspection, or a combination of both.
When is a bedroom not a bedroom? Just because a living space appears to be used for sleeping does not guarantee it can be marketed as a bedroom. For instance, converted garages cannot be described as bedrooms unless they have the appropriate consents and certifications, and rooms comply with the minimum requirements under the Housing Improvement Regulations 1947.