REINZ Real Estate magazine - Autumn 2022

Page 56

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.


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Articles inside

Balancing privacy rights - with health and safety considerations in the real estate sector

4min
pages 62-63

Progress on Unit Titles (Strengthening Body Corporate Government and other matters Bill)

3min
page 61

Agreement for Sale and Purchase of Real Estate eleventh edition

2min
page 60

REINZ hosts its 2021 Annual General Meeting (AGM) online

4min
pages 58-59

No suprises - why getting to know a property before listing is always worth the time and effort

5min
pages 56-57

Fail to plan and plan to fail - importance of planning for real estate success

6min
pages 54-55

First-time home seller? Make their first one a good one

4min
pages 52-53

Bidding farewell to two influential REINZ Regional Directors

4min
pages 50-51

Connecting through understanding

5min
pages 48-49

Auctions paving the way in the market

5min
pages 46-47

Member relationship management — the good oil

2min
page 45

PropTech — drivers, trends and engagement

8min
pages 42-44

2021 in RPM — a year of Cs

5min
pages 34-35

Ever-increasing value of privacy

3min
page 32

Getting the job done — a hybrid style

5min
pages 30-31

A record year for dairy reinforces confidence in the sector

4min
pages 28-29

Ensuring a positive home-buying experience for new kiwis

5min
pages 26-27

2022 — a year of recovery

5min
pages 24-25

Making homes inclusive for all

5min
pages 22-23

Could 3D printed homes fix our housing shortage?

5min
pages 20-21

The future is green — a sustainability mindset

5min
pages 18-19

Nelson and Tasman - Climbing the ladder of the south

4min
pages 16-17

Changes to the CCCFA

4min
pages 14-15

REINZ Real Estate magazine - Autumn 2022

3min
page 6

INDUSTRY

4min
pages 56-57
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