Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698839144794.pdf (New Zealand)
Real Estate Agents Bill Government Bill As reported from the Justice and Electoral Committee Commentary Recommendation The Justice and Electoral Committee has examined the Real Estate Agents Bill and recommends by majority that it be passed with the amendments shown.

Introduction This bill is intended to replace the Real Estate Agents Act 1976.

It proposes a new regulatory regime for the real estate industry.
The Government’s intention is to modernise outdated sections of the 1976 legislation, and increase protection for consumers in real estate trans­ actions.

This commentary covers the key amendments that we recommend to the bill.

It does not cover minor or technical amendments.


Membership of the Real Estate Institute of New Zealand We recommend the inclusion of new clause 157A to remove any un­ certainty about the status of membership of the Real Estate Institute 185—2 2 Real Estate Agents Bill Commentary of New Zealand (REINZ) that might arise following the repeal of the 1976 Act, which requires all licensed real estate agents to be mem­ bers of the REINZ.
The bill as introduced was silent on the status of current REINZ membership after the passage of the bill.

We are con­ cerned that this might cause unnecessary confusion and uncertainty.

New clause 157A provides that a current member of the REINZ will continue to be a member until membership is terminated in accord­ ance with the REINZ rules, or until the person resigns his or her mem­ bership.

This clause is intended to allow a smooth transition from the 1976 Act to the regime proposed by this bill.
Statistics Some submitters expressed concern that without compulsory mem­ bership of the REINZ statistical information on house sales would not be accessible to the public and the industry.

We sought advice on this matter, and have been assured that some statistics would be avail­ able through other sources such as Quotable Value New Zealand.
We also note that the bill does not restrict the REINZ’s ability to collect statistical information from either its members or the industry, and we expect it to continue to do so.

Commencement We recommend amending clause 2 to ensure that the implementa­ tion of the new regulatory regime is staggered and practicable.

As introduced, the bill proposes that all provisions come into force on the day after the date on which the bill receives the Royal assent.
Given the signiﬁcant changes proposed, we are concerned that such a commencement date would not allow a smooth transition to the new regime.
The amendments we recommend would result in the pro­ visions establishing the Real Estate Agents Authority, making prac­ tice rules, setting fees and levies, appointing the Registrar, conferring regulation­making powers, establishing the Complaints Assessment Committees and the associated panel, and establishing the Real Es­ tate Agents Disciplinary Tribunal coming into force the day after en­ actment.
The other provisions of the bill would come into force one year after the date on which the bill received the Royal assent.

Commentary Real Estate Agents Bill 3 Purpose of the Act We recommend amending clause 3 to include a statement that the Act is intended to promote public conﬁdence in the performance of real estate agency work.
This addition is intended to conﬁrm and strengthen the statements in clause 3, and to reinforce the message that the bill sends to the industry and consumers about the importance of consumer protection in real estate transactions.

Deﬁnitions We recommend several amendments to clause 4 to clarify deﬁni­ tions, and to deﬁne particular terms used throughout the bill, such as “salesperson”, “branch manager”, and “residential property”.

These amendments are intended to assist with interpretation.
Residential property We recommend including a deﬁnition of “residential property”, which is referred to in clauses 125, 129, and 131, to clarify that these clauses only apply to properties used or intended to be used for residential purposes.

We also propose amendments to clauses 125 and 129 to ensure that agency agreements would not apply to residential properties in a continuous area that are being sold by the same vendor (subdivisions).
Real estate agency work The deﬁnition of this term, along with the deﬁnition of “transaction”, is vital in determining the bill’s application.
We recommend amend­ ing the deﬁnition to ensure that it is clear that work and services for the purpose of bringing about or effecting a real estate transaction are captured by the regulatory regime, and to ensure that bodies such as providers of ﬁnancial services, businesses offering limited services to vendors selling privately, and newspapers and websites publish­ ing real estate advertising are not captured unintentionally.
We re­ ceived submissions that raised concerns that sharebrokers would be captured by the bill.

We do not consider that this is the case, as the sale and purchase of shares do not affect the legal ownership of land.

We also recommend amendment of the deﬁnition to include work done or services provided by a branch manager or salesperson under the direction of, or on behalf of, an agent.
These amendments accord 4 Real Estate Agents Bill Commentary with the intention of the bill, which is to regulate those involved in the sale and purchase of land interests, rather than those involved solely in advertising or advisory services.

Transaction We recommend amending this deﬁnition to ensure that transactions regarding all registrable interests in land are captured.

As intro­ duced, the deﬁnition omits various interests and occupation rights that are neither freehold nor leasehold.
Our recommended amend­ ments would ensure that sales and purchases of interests including licences under the Land Act 1948, units held under the ﬂat and of­ ﬁce owning companies regime in Part 7A of the Land Transfer Act 1952, units in many retirement villages, stratum estates under the Unit Titles Act 1972, and Crown forestry licences under the Crown Forests Assets Act 1985, would be captured.
Including all registrable interests in land would provide protection for consumers over the whole range of sale and purchase transactions.

Exemptions Clauses 7 to 13 of the bill allow the exemption of certain groups from the licensing requirements in the bill.
Lawyers and conveyancers We recommend the inclusion of clauses 7(1)(c) and 7(3)(c)(v) to en­ sure that an incorporated ﬁrm within the meaning of the Lawyers and Conveyancers Act 2006 is exempt from the licensing require­ ments if it carries out real estate agency work.

Clause 7 is intended to accord with the provisions of the Lawyers and Conveyancers Act 2006, which allows lawyers to undertake real estate agency work, but does not allow a commission to be charged for such work.
However, clause 7 as introduced did not prohibit incorporated ﬁrms from be­ ing licensed and thus charging a commission.

We recommend these amendments to address this omission.

We considered whether the charging of a commission should be per­ mitted.

We note that this matter was considered carefully during the passage of the Lawyers and Conveyancers Act 2006.
Commentary Real Estate Agents Bill 5 Exemption for Landcorp Farming Limited and granted by Authority We recommend that clause 9 be deleted from the bill.

This clause is a replication of a provision in the Real Estate Agents Act 1976, which allowed Landcorp Farming Limited to carry out any real estate agency work in respect of land of the Crown or of any State­Owned Enterprise.
The subsidiary that carried out this business for Land­ corp, Landcorp Property Limited, was privatised in 1994, and Land­ corp has not acted on behalf of the Crown or of other State­Owned Enterprises since then.

It does not envisage doing so in future, mak­ ing this provision unnecessary.

We recommend the deletion of clause 10, which provides an ex­ emption for persons operating in accordance with a permit.

Permits would no longer be granted under the new regime.
Regulation­making power and recommendation by Minister We recommend that clauses 12 and 13 be deleted and replaced with new clauses 155(aa), 155(2), and 155(3).

They provide for an ex­ emption from the requirement to be licensed, to be made by Order in Council.

In addition, we recommend amendments to clarify the provisions, for example new clause 155(3)(a)(i).

Real Estate Agents Authority The establishment of a Real Estate Agents Authority is one of the key proposals of the bill.
The Authority would be responsible for admin­ istering the licensing regime, setting industry standards, complaints and disciplinary procedures, setting fees and levies, and providing information for consumers.

Key clauses in relation to the proposed Authority are set out in Part 2 of the bill.

At present, regulatory responsibility for the industry is divided between the REINZ and the Real Estate Agents Licensing Board.
We were told that establishing an independent body to remove direct responsibility from those involved in the industry is expected to improve consumers’ conﬁdence in the complaints and disciplinary process.

We heard from many submitters who supported the establishment of an independent body to oversee the complaints and discipline regime.

Some queried the potential cost of such a body, and expressed con­ 6 Real Estate Agents Bill Commentary cern that these costs might be passed on to the consumer.
We were advised that the regime would be funded through fees and levies.

We investigated the possibility of using the interest from agents’ trust funds to pay for the Authority, in a similar way to that in which inter­ est from lawyers’ trust funds can be used to fund community law cen­ tres administered by the Legal Services Agency under the Lawyers and Conveyancers Act 2006.
However, we consider that the admin­ istrative burden incurred by this type of funding would be too cum­ bersome, and that it would not be practical to fund the Authority in this way.

We asked for costings for funding the Authority by fees, and were provided with material that suggests that licence fees are unlikely to exceed $500 per annum.

Fees and levies are discussed further below.


Functions of the Authority We recommend a number of amendments to clause 16 of the bill, which sets out the functions of the Authority.

Industry training organisation We recommend the inclusion of new clause 16(3) to ensure that it is clear that the Authority’s functions do not undermine or change the role of any industry training organisation.
The Real Estate Institute of New Zealand Industry Training Organisation Limited (REINZ ITO) is currently a recognised industry training organisation.

Some sub­ mitters expressed concern that the functions of the Authority would undermine its role.

Organisations apply to the Minister of Education for industry training organisation status under the Industry Training Act 1992.

It is not appropriate to specify an industry training organ­ isation in legislation, as they may change over time.
Consultation We recommend the inclusion of new clause 16(2) to allow the Au­ thority to consult representatives of the real estate industry on any of its functions.

We heard from submitters who expressed concern that representatives of the industry might not be able to participate in the new regime.

We consider it appropriate that the bill provide for consultation with the industry as one of the Authority’s functions.
Commentary Real Estate Agents Bill 7 Complaint investigation We recommend the addition of a new subclause in clause 16 to al­ low the Authority to initiate investigations on its own motion.

The Authority should be able to investigate any act, omission, allegation, practice, or other matter that indicates or appears to indicate miscon­ duct or unsatisfactory conduct by a licensee.

We consider this would provide desirable protection for consumers.
Appointment of Registrar We recommend the addition of new clause 16(ab) and amendments to clause 16(b), which would mean that the Authority appointed a Registrar of the register of licensees, and to make it clear that the Authority had overall responsibility for maintaining a public register.

This amendment is intended to remove any doubt about the role of the Authority and the way it reconciles with the role of the Registrar in clause 32.
Membership of the Authority We recommend an amendment to clause 17(3) to require the respon­ sible Minister to appoint a member of the Authority who is a lawyer with not less than seven years’ legal experience to be the chairperson of the Authority.

In addition, we recommend the addition of new clause 17(3A) to re­ quire the Minister to appoint at least two members to the Authority who are licensees or former licensees.
As introduced, the bill pro­ vides the Minister with the ﬂexibility to appoint people with a broad range of skills; but it does not specify the need for industry represen­ tation, at which many submitters expressed concern.

They argued that the requirement to consider the need to represent industry inter­ ests would not be sufﬁcient to guarantee adequate industry expertise on the Authority.
We agree that industry expertise on the authority would be valuable, and recommend this amendment to provide cer­ tainty and reassurance to the industry and consumers.

Consultation on practice rules We recommend an amendment to clause 20 to allow the Authority to consult those who the Authority considers to be representative of the 8 Real Estate Agents Bill Commentary real estate industry when making practice rules.
This amendment is intended to clarify the consultative requirements, and to ensure that consultation would be effective for both the Authority and the industry.

We recommend a similar amendment to clause 22, to allow the Minister to consult those considered to be representative of the industry when considering amendments to any practice rules.

We hope that these amendments would encourage effective consultation on practice rules with industry representative bodies.
Fees and levies Many submitters expressed concern about industry input into the pre­ scribing of fees and levies, and concern that excessive costs could be passed on to the consumer.

We have received indicative costings that suggest the proposed fees would be $500 per year for an agent, $350 per year for a branch manager, and $300 per year for a salesperson.

These fees would be applied to establish and run the new Authority.
The Authority would be subject to the Crown Entities Act 2004 as well as the Treasury and Auditor­General guidelines, which would provide signiﬁcant checks on the setting of fees and levies by the Authority.

We are satisﬁed that the setting of fees and levies by the Authority would be transparent and subject to appropriate guidelines.
Publication of rules, fees, and levies We recommend amending clause 23(2) and clause 27(2) to provide that notices of fees and levies and rules are regulations for the pur­ poses of the Acts and Regulations Publication Act 1989.

This amend­ ment would ensure that any changes to fees, levies, or rules would be published in the SR (Statutory Regulations) series, ensuring trans­ parency of process and access to fee and levy information.
Powers of intervention Investigation of ﬁnancial records and trust accounts In the bill as introduced clause 29 provides that the Authority may take possession of and inspect an agent’s ﬁnancial records and docu­ ments in certain cases, and clauses 122 and 123 provide for the ad­ ministration of trust accounts by the Authority and the appointment of an interim administrator in certain cases.
We recommend the dele­ Commentary Real Estate Agents Bill 9 tion of clauses 122 and 123 and the reinstatement of the substantive focus of these provisions as new clauses 29B and 29C.

We recom­ mend including new clause 29D to allow the Authority to direct an audit of an agents trust accounts and to appoint an auditor to carry out that audit.
In addition, we recommend deleting clause 29(2) and reinstating this as new clause 29A, which clearly sets out the power of the Authority to take possession of ﬁnancial records.

We recom­ mend that the new clauses use consistent terminology throughout, to remove any doubt about interpretation.
These amendments are intended to ensure that the powers of the Au­ thority in relation to administration of trust accounts and inspection and possession of records are clearly set out in the bill in a logical and readable way.
We also recommend that clause 29 be amended by the addition of new paragraphs (j) and (k), which would allow the Authority to inter­ vene where a trust account had not been administered in accordance with the Act or regulations made under it, or an agent operated a trust account that had been administered fraudulently or recklessly.

It is important that the Authority be allowed to intervene in such circum­ stances if consumers are to be protected adequately.
Registrar In the bill there is provision for a Registrar to carry out speciﬁc func­ tions, particularly in relation to licensing, as outlined in clause 32.

However, it is intended that the Authority should have overall con­ trol of the licensing process.

Some submitters suggested that the re­ spective roles of the Authority and the Registrar regarding licensing were not clear enough.
As noted above, we recommend the addition of new clause 31A and new clause 16(ab) and amendments to clause 16(b) to clarify this interaction.

We also recommend amending clause 33 so that the Registrar could independently delegate only functions of an administrative nature.

In the bill as introduced the Registrar could delegate any of his or her functions, duties, and powers to someone else (except the power of delegation).
We consider that only the administrative functions of the Registrar should be allowed to be delegated independently.

The amendment we recommend would allow other functions (such as de­ 10 Real Estate Agents Bill Commentary cisions about licensing and about the issuing, cancelling, and suspen­ sion of licenses) to be delegated with the approval of the Authority.

This amendment is intended to provide an additional safeguard for consumers.
Entitlement to licence and renewal of licences The bill proposes reducing the experience required for an individual to be licensed as an agent or branch manager, from the current re­ quirement of three years’ full­time experience in the real estate in­ dustry in the last ﬁve years to two years’ experience within the last 10 years.

Some submitters were concerned that this lesser requirement might reduce the available expertise in the industry.
They considered that recent experience is essential to ensuring that agents have good cur­ rent knowledge of industry practices.

Other submitters considered, on the other hand, that the current ex­ perience thresholds are too high.

They argued that such onerous re­ quirements (three years’ full time real estate work within the last ﬁve years) might prevent the introduction of new talent into the industry by presenting a signiﬁcant barrier to new business ownership.
We considered the experience needs of a licensee at length.

We con­ cluded that, while some industry experience is necessary, the require­ ments proposed by some submitters would be most likely to perpetu­ ate a self­replicating business model in the industry.

We note also that experience of itself may do little to improve standards, guaran­ tee competence, or protect consumers.
We consider that one of the most important new elements proposed by the bill is the ability for the Authority to make practice rules requir­ ing continuing education (clause 19).

If used well, this requirement for continuing education is much more likely to ensure that licensees have a useful knowledge of good current industry practice than ex­ perience requirements alone.
Compulsory continuing education We recommend amending clause 51 to require licensees to complete any compulsory continuing education prescribed under clause 19 in order to renew their licences.

We also recommend amending clause Commentary Real Estate Agents Bill 11 53 to allow the cancellation of a licence if a licensee fails to comply with practice rules on continuing education.
We recommend an amendment to clause 34(1)(e) of the bill to ensure that the experience requirement for real estate agency work is con­ sistent with the deﬁnition in clause 4 of the bill.
Trans­Tasman Mutual Recognition Arrangement Many submitters expressed a view that the Trans­Tasman Mutual Recognition Arrangement could be a source of problems in the real estate industry, because of the difference between industry standards and educational requirements in New Zealand and some Australian states and territories.

For example, in New South Wales a person is required to undertake only a one­week course before becoming a li­ censed real estate agent.
This is recognised in New Zealand under the Arrangement.

These submitters expressed concern at what they saw as a “short­cut”, and argued that it could lower standards in the industry.

We were not given any evidence that agents or salespersons who reg­ istered under the Arrangement are more likely to have complaints made against them than those who have gained the New Zealand qualiﬁcation.

However, we do agree that there is potential for in­ consistent standards reﬂecting differing requirements.
The REINZ ITO has conducted a gap analysis of the courses in New South Wales and New Zealand, and produced a list of qualiﬁcations that they consider bridge the gap.

We note that the amendments we have recommended to clause 51 requiring continuing education to renew a licence could help to ensure that all licensees, including those eligible under the Arrangement, were aware of legal requirements and industry practices in New Zealand.
We urge the Government to take up the issue of monitoring occupa­ tional qualiﬁcation equivalency in the upcoming review of the Trans­ Tasman Mutual Recognition Arrangement.

Persons prohibited from being licensed We recommend amending clause 35 to prohibit lawyers, conveyanc­ ing practitioners, and incorporated ﬁrms as deﬁned by the Lawyers and Conveyancers Act 2006 from being licensed.
This amendment accords with clauses 6 and 7 of the bill as introduced, which treat 12 Real Estate Agents Bill Commentary lawyers and conveyancing practitioners as distinct from licensees.

Lawyers and conveyancing practitioners are subject to the require­ ments of the Lawyers and Conveyancers Act, and we do not con­ sider it appropriate that they also be subject to the real estate agents’ licensing regime.
If lawyers or conveyancing practitioners did not have practising certiﬁcates they would be eligible to apply to become licensed real estate agents or branch managers.

We recommend deleting the provision in clause 35(1)(b) that pro­ hibits a person who has been convicted of an offence under section 26 of the Fair Trading Act 1986 in the past ﬁve years from being li­ censed as a real estate agent or a branch manager.
Section 26 of the Fair Trading Act relates to false trade description of imported goods, and we do not consider this relevant to a person’s ability to operate in the real estate industry.

We also recommend deleting reference to section 25 of the Fair Trading Act, which is not relevant to this bill.
We recommend that clause 35(1)(e) be amended to provide that a person would be ineligible to be a licensed real estate agent or a branch manager if he or she had been prohibited from doing so in another country within the last ﬁve years, unless the person satisﬁed the Authority that he or she was a ﬁt and proper person.
This amend­ ment would allow the Authority more ﬂexibility in determining the suitability of prospective licensees, and seeks to ensure that people would not be unduly constrained in applying for licenses.

Licences in partnerships and companies We recommend deleting clauses 42(2) and 42(3) and replacing them with new clause 42(1A).

Clauses 42(2) and 42(3) deal with special provisions in respect of partnerships and companies.
They were car­ ried over from the 1976 Act, but the intention of this bill is to relax rules restricting real estate company ownership and directorships, so we recommend that they be replaced with a single provision requir­ ing that at least one ofﬁcer of a company must hold an agent’s licence at any given time.

Vicarious liability Clause 49 of the bill preserves the ability of agents to employ inde­ pendent contractors as salespeople, as allowed under the 1976 legis­ lation.
We recommend an amendment to ensure that an agent who Commentary Real Estate Agents Bill 13 employs such an independent contractor could be vicariously liable for that salesperson’s actions as if they were an employee.

This af­ fords better protection to consumers than the bill as introduced.
Review of employment status Clause 49 preserves the right of salespersons (who are exempt from the tests governing employment status in the Employment Relations Act 2000) to be engaged as independent contractors (from section 51A of the 1976 Act).

Clause 50 of the bill as introduced requires the chief executive of the Ministry of Justice to report to the Minister on the appropriateness of clause 49 not later than ﬁve years after the commencement of the Act.
The exemption in clause 49 means that some employment require­ ments applying to other occupations do not apply to salespeople, which has the potential to harm the industry.

For example, there is no obligation for agents to pay salespeople a minimum wage, and sales­ people can be engaged on commission­only contracts, so that the cost of wages does not limit the number of salespeople.
With these low costs, real estate ﬁrms can take on large numbers of salespeople to raise their business proﬁle, regardless of the general business need for staff.

The ability to engage salespeople as independent contrac­ tors at low cost facilitates large numbers and high turnover of staff.

We accept that many salespeople in the industry prefer to be engaged on commission­only contracts.
Many industries engage contractors on similar terms and conditions and are not exempt from the Em­ ployment Relations Act.

Such occupations include insurance sales, car sales, and contractors to private industry and Government de­ partments.

However, we are concerned that in some instances real estate salespeople do not receive remuneration or entitlements that meet minimum standards in employment law.

A number of submit­ ters made this point.


We consider that it would therefore be useful to retain provision for a review of clause 49, but for the sake of cer­ tainty in the industry we recommend amendments to ensure that the report to the Minister takes place after the Act has been in force for ﬁve years.

14 Real Estate Agents Bill Commentary Misconduct We recommend amending clause 72 of the bill as introduced by tak­ ing out the reference to the Fair Trading Act.
We are concerned that using this legislative example might unintentionally limit the way this provision is interpreted and thus restrict its application.

How­ ever, we strongly recommend that when considering the offence of misconduct the Tribunal deem contraventions of Acts such as the Fair Trading Act 1986 to be misconduct.

We consider that this change will not limit protection for consumers but in fact give them more.
Complaints Assessment Committee The bill proposes the establishment of a Complaints Assessment Committee (to be appointed by the Authority), with responsibility for investigating complaints.

We were advised that the Complaints Assessment Committee would be expected to hire investigators to do most of the practical investigating, under the oversight of the Committee.

The Committee would also oversee the Authority’s provision of information to the public about the complaints and discipline system.
Establishment The bill proposes the establishment of a single Committee (clause 74).

We are concerned that the introduction of a new complaints and disciplinary regime might prompt a surge in the number of com­ plaints received, possibly resulting in a bottle­neck preventing the timely addressing of complaints.

The REINZ told us that it receives approximately 200 telephone complaints or enquiries each month.
In addition, Consumer NZ noted that it regularly receives complaints from clients about the real estate industry.

Consumer NZ said it has logged 53 complaints about the real estate industry in the past ﬁve years.

We recommend amending clause 74 to allow the Authority to ap­ point as many Complaints Assessment Committees as it considers necessary to deal effectively with complaints and allegations about licensees.
The bill allows discretion to resolve low­level complaints without referral to the Complaints Assessment Committee.

To ensure that the Authority could appoint Committees efﬁciently, we recommend the inclusion of new clause 74A, which requires the Commentary Real Estate Agents Bill 15 Authority to maintain a panel of members for possible appointment to Complaints Assessment Committees.
When considering the ap­ propriateness of panel members, the Authority would be required to have regard to the prospective members’ knowledge of matters likely to come before a Committee.

This would ensure that the Authority could appoint appropriately staffed Committees promptly.

Committees would consist of three members, one member being a member of the Authority, and two appointed from a panel maintained by the Authority under new clause 74A.
One member would also have to be a lawyer of not less than seven years’ legal experience.

We expect that these amendments would help to avoid delays in the complaints process, and ensure that Committees were appropriately staffed.

Investigations We recommend the inclusion of new clause 75(ab) to allow Com­ plaints Assessment Committees to inquire into and investigate alle­ gations against licensees on their own initiative.
We consider that this amendment would provide more protection and an easier process for the consumer, as an investigation would not have to be com­ plaint­driven.

We recommend amendments to clauses 79, 80, 86, 88, and 90 to ensure that it is clear that Committee investigations need not be in response to complaints.

Power to make orders Clause 90 of the bill outlines the powers of a Committee to discipline a licensee.
We recommend amending this clause to allow the Com­ plaints Assessment Committee to make one or more of the orders provided for in the clause.

This would make it clear that a Commit­ tee could use more than one order in a particular case, and would help to ensure that the most appropriate form of discipline could be used in any case of unsatisfactory conduct.
16 Real Estate Agents Bill Commentary Real Estate Agents Disciplinary Tribunal Membership We recommend amending clause 97 of the bill to require that at least one member of the Tribunal must be a licensee.

Having industry representation on the Tribunal should ensure that the Tribunal had sufﬁcient experience and knowledge to carry out its functions well.

We also recommend the insertion of new clause 97(4), which would require the designation of a deputy chairperson when the Tribunal was formed.
We consider this is important to minimise delays in the disciplinary regime.

Charges and orders We recommend the addition of new clauses 107(4) and 107(5) to al­ low the Tribunal to make any of the orders that the Complaints As­ sessment Committee could have made, or to refer a matter back to the Committee where it considered a licensee had engaged in “unsatis­ factory conduct”, but was not guilty of misconduct.
This amendment would allow the Committee to deal appropriately with licensees who breached the rules, and allow ﬂexibility for addressing inappropriate behaviour even where it did not amount to misconduct.

We recommend amending clause 108 by replacing the word “com­ plainant” with “appellant”, to recognise that it might not necessarily be a complainant who made an appeal to the High Court.
Business to be identiﬁed We recommend the addition of new clause 117A, which would re­ quire every agent to clearly exhibit a notice of their name and the fact that they are a real estate agent licensed under the Act at their place of business.

This information would also need to be shown on all notices, advertisements and other publications issued by or on be­ half of the agent.
We consider that this would promote transparency and help to protect consumers by ensuring that information about the agent and their status as a licensee was readily available.

It would also help to draw consumers’ attention to the legislation under which the industry and licensees’ behaviour is regulated.

We note that this is a requirement under the current regime.
Commentary Real Estate Agents Bill 17 Agency agreements Cancellation of sole agency agreements The bill provides that an agent is not entitled to a commission or expenses without an agency agreement (clause 124).

We recommend amending the deﬁnition of “sole agency agreement” in clause 4 to simplify it and to make it clear that it is an agreement (between an agent and a client) in which the client agrees not to instruct any other agent to act for the client in respect of the relevant transaction.
Clause 128 provides that a client may cancel a sole agency agree­ ment with effect by 5 p.m. the next working day.

This provision is intended to introduce a “cooling­off period”, to help to ensure that clients are not rushed into binding agreements without time to think carefully about them.

Because this is such an important protection, we recommend the inclusion of new clause 128(3) to provide that parties cannot contract out of this provision.
Under the amendment the provision would continue to have effect regardless of any provi­ sion in a contract to the contrary.

For the same reason we recommend a similar amendment to clause 129, which would ensure that a party could not contract out of the ability to cancel a sole agency contract.
We also recommend the inclusion of new clause 128(4) to ensure that where a sole agency agreement has been cancelled, an agent could still rely upon that agreement to, for example, recover expenses or commission if work had already been carried out.

This would ensure that the cancellation provisions were not misused to the detriment of agents.

Cancellation of sole agency agreements after 90 days We recommend amending clause 129 so that it applies to agency agreements for the sale of residential property.
We also recommend the inclusion of a deﬁnition of “residential property” in clause 4 and amendments to clauses 125 and 129, to make it clear that residential properties do not include multiple properties that form part of a sin­ gle development.

The clause as introduced allows any party to a sole agency agreement to cancel the agreement at any time after a period of 90 days (from the date of signature) has expired.
Many submitters were concerned that this provision would not be appropriate for commercial, indus­ trial, and rural properties, or properties in a residential development.

18 Real Estate Agents Bill Commentary We are satisﬁed that the recommended amendment takes industry re­ alities into account, while providing consumers with protection.
We also recommend the inclusion of new clause 129(1A) to provide that parties can agree to renew the agency agreement at the end of 90 days, and that the agreement can be cancelled at the end of a fur­ ther 90 days.

This would allow for the situation where both parties wanted to renew an agency agreement, and it might encourage good service provision as such renewed agreements are likely only where the vendor is satisﬁed with the services being provided.
Copy of contract We recommend deleting from clause 130 the list of types of docu­ ments that a licensee is required to give a copy of to the person who signed them.

The addition of a reference to “contractual document” in this clause, with an associated deﬁnition in clause 4, renders the list unnecessary.

Regulations and agency agreements We recommend deleting clauses 127(a) and 127(b), which allow regulations to be made regarding the form and required terms and conditions of agency agreements.
Some submitters considered subclause (b) to be too broad; and both subclauses could be used to regulate the fees or commissions charged by agents.

We do not consider it appropriate for the content of agency agreements or real estate agents’ commissions to be governed by regulation.

Approved guide Clause 131 requires the agent or licensee to provide an approved guide to a person before giving them a copy of an offer to buy or sell property or a proposed agreement for the sale and purchase of property.
We recommend amending this clause so the agent or li­ censee was required to provide the guide before an offer or sale and purchase agreement was signed.

We consider that this would ensure that consumers were informed as to the protections available to them throughout a real estate transaction.
Commentary Real Estate Agents Bill 19 Disclosure of information We recommend amending clause 133 so that a valuation of a busi­ ness can be provided by an independent chartered accountant where a client is to contract with a licensee or related person.

Clause 133 is carried over from the 1976 Act and compels licensees to provide a valuation to the client on whose behalf they are carrying out real estate agent work, when they or someone they know is likely to ac­ quire the land or business.
Written disclosure Clause 134 requires a licensee who carries out real estate agency work to provide in writing for every transaction a statement as to whether they or someone related to them may beneﬁt ﬁnancially from the transaction.

We consider this might duplicate disclosures required under clauses 126 and 132 and impose an unnecessary ad­ ministrative burden on agents in these circumstances.
We recom­ mend amending clause 134 by the addition of new clause 134(1A) to make it clear that when clauses 126 and 132 apply, licensees are not required to make a further disclosure under clause 134.

Auctions We recommend amending clause 136 by replacing the words “regis­ tered auctioneer” with “licensed auctioneer”.

In fact under the Auc­ tioneers Act 1928 auctioneers are licensed, not registered.
Licensees We recommend amending clauses 46(2) and 47(2) of the bill to ex­ empt licensees from being required to also hold an auctioneers’ li­ cence in order to conduct a real estate auction.

We consider the bill’s licensing requirements and the disciplinary regime would be sufﬁ­ cient to enhance protection for consumers.

Bidders record We recognise that a large number of submissions opposed the re­ quirement for a Bidders Record at auctions.
However, it is important that reasonable protections are afforded during the auction process.

We consider that a Bidders Record would provide some guarantee 20 Real Estate Agents Bill Commentary for both the vendor and purchaser that only genuine bids will be ac­ cepted.
Access to Bidders Record We recommend deleting clauses 137(6)(a) and (b), which allow regu­ lations to be made which confer an entitlement on a seller to inspect the Bidders Record, and the manner and form in which the Bidders Record is to be kept.

We do not consider that sellers should have unlimited access to the Bidders Record.

We do however consider that access should be available if it is needed for post­auction nego­ tiations.
We recommend the insertion of new clause 137(6)(ba) to allow sellers to access Bidders Record information where it is ne­ cessary to effect the transaction to which the auction relates.

These amendments are intended to afford bidders reasonable privacy, whilst facilitating auction­based transactions.

We consider clause 137(6)(b) unnecessary.


Bidder’s identity We recommend an amendment to clause 138 to clarify that only the bidder’s identity needs to be proven through documentation, and not the bidder’s address.

We consider veriﬁcation of an address unneces­ sary for the purposes of this bill.

Offences and penalties Many submitters expressed dissatisfaction with the low penalties and ﬁnes available in the present regime.
Some told us that efforts had been made to raise the available penalties for several years.

We agree with submitters that the penalties and ﬁnes are inadequate and it is very important that this matter is addressed.

Clauses 142 to 153 set out the offence and penalty provisions.

We recommend the deletion of clause 142, which is a general offence provision, and its replacement with the speciﬁc offence provisions contained in new clauses 150A, 150B, 150C, 151AA, 151AAB, 152A, and 152B.
A general offence provision does not distinguish between serious breaches involving substantial loss or risk to con­ sumers, and less serious breaches involving technical failures.

The new offence provisions recommended make such distinctions clear.

Commentary Real Estate Agents Bill 21 Fines The bill as introduced contains a general penalty provision in clause 143.

We recommend amending this clause to ensure that it applies only to offences against the Act, and not to offences against regula­ tions.
In addition, we recommend amending clause 150 to provide that the maximum ﬁne for failing to notify the Registrar of a change in circumstances would be $10,000 for individuals and $50,000 for a company.

We also recommend that these penalties be applied to the new offence in new clause 150C of failing to provide informa­ tion or documents.

These ﬁnes recognise the nature of the offences, and are comparable with other disciplinary regimes.
We note that our proposed maximum ﬁnes for an individual are comparable with the Immigrations Advisors Licensing Act 2007.

Civil remedies We recommend the inclusion of new clause 154A, which replicates provisions of the 1976 Act.

This clause provides that nothing in the Act will affect any civil remedy that any person may have against a real estate agent, salesperson, or branch manager in respect of any matter.
We consider civil remedies to be an important consumer pro­ tection, and it should be clear that they remain available.

Regulations We recommend a number of amendments to clause 155, which con­ tains the bulk of the regulation­making powers proposed in the bill as introduced.

We recommend adding new clause 155(fa), which would allow regulations to be made about the conduct of proceedings before the Disciplinary Tribunal.

New clauses 155(aa), 155(2), and 155(3) would replace deleted clauses 12 and 13.
Audit We recommend deleting clause 155(g), which allows regulations to be made for the auditing of trust accounts, and the insertion of new clause 155(ga) which is more speciﬁc than the original clause and provides more detail about the content of regulations regarding audit.

The proposed amendment would offer more protection for consumers by ensuring that regulations made in respect of audit functions covered the necessary matters.
22 Real Estate Agents Bill Commentary Prescribing offences We recommend amending clause 155(k) to make it clear that of­ fences prescribed by regulation must relate only to contravention of or non­compliance with regulations.

In addition, we recommend an amendment to ensure that the maximum penalties available for of­ fences against regulations are clear.

In the case of an individual, the maximum penalty should not be permitted to exceed $25,000 and, in the case of a company, $50,000.
Compensation We recommend deleting clause 155(m), and amending clause 107(2)(g) to specify that the maximum amount of compensation that could be awarded by the Tribunal would be $100,000.

The bill as introduced allowed regulations to be made under clause 155(m) prescribing the maximum amount of compensation that could be awarded.
We sought the advice of the Regulations Review Committee on the appropriateness of allowing such a matter to be set by regulation, and upon their recommendation suggest including the maximum compensation that the Tribunal can award in the bill itself.

Transition of agency agreements We recommend the inclusion of new clause 167A to make it clear that agency agreements entered into prior to the Act coming into force remain subject to section 62 of the Real Estate Agents Act 1976.
The suggested amendment should help clarify which Act an agency agreement is subject to, and minimise transitional issues in this re­ gard.

Property managers We examined the possibility of amending the bill to apply to property managers, but such an amendment would be outside the scope of the bill as introduced.

The focus of the bill as introduced is the regula­ tion of behaviour regarding the sale and purchase of land interests.
The bill does not propose the regulation of any property management activities (such as leasing, letting, collection of rental or collection of payment for other property management services).

We recognise that, whilst many real estate agents undertake a property manage­ Commentary Real Estate Agents Bill 23 ment function, this does not make property management a real estate transaction.
We agree with submitters who raised concerns about the lack of regu­ lation of property managers and property management, and the lack of protection for consumers dealing with them.

We consider it im­ perative that immediate action be taken to create an appropriate regu­ latory regime for property management activities.
We do not con­ sider that the provisions for property management in the Residential Tenancies Act 1986, which relate primarily to relationships between parties such as a tenants, owners, and property managers, are sufﬁ­ cient to ensure that consumers are protected in property management transactions.

We would expect an appropriate regime to include, at a minimum, trust account and audit requirements, and provision for an independent disciplinary body.
We heard from the REINZ that the last claim against the Real Estate Agents Fidelity Guarantee Fund related to the misappropriation of trust account funds by a property management company.

The claim against the fund was for a total of $67,154.65.

We are concerned that there would only be criminal or civil remedies for any misappro­ priation of funds by property managers, and no other disciplinary regime, if this bill comes into force.
We have been advised that the Government intends to review the regulation of property management.

We expect that this review and any legislative proposal that may eventuate will be coordinated so that they coincide with the implementation of this bill, ensuring that some measures in relation to property managers are in place before the entirety of this bill is brought into force.

New Zealand National Party minority view The National Party opposes the Real Estate Agents Bill.
National agrees that a new independent authority (with industry rep­ resentation) is required to give consumers conﬁdence that there is effective oversight of this industry.

National supports timely reform of the real estate industry but thinks this bill is inadequate.

A common theme of the majority of submitters was the concern that property management is not included in the bill.
We heard that the last claims on the Fidelity Fund were in relation to property manage­ 24 Real Estate Agents Bill Commentary ment and that about one in ﬁve complaints relates to property man­ agement.

Property management is often an integral part of real estate work and National believes that if the real objective of the bill is con­ sumer protection then property management should be included.
National is also concerned: about the uncertainty created by the ﬁve year review of the employ­ ment status of real estate agents; about the inadequacy of the transitional provisions (the Lawyers and Conveyancers Act 2006 has a two year transitional period, as op­ posed to the one year proposed in this Bill); that auctioneers remain excluded from the legislation.
The new rules relating to auctions are impractical; that the auction Bidders Record is impractical; that the bureaucracy created by this bill will result in the consumers paying more in real estate fees to meet the costs of such bureaucracy; and that the requisite experience for a real estate agent to hold a licence (two years experience within the preceding ten years) is insufﬁcient.

National agrees with the majority of the submitters that three years out of ﬁve years would be more appropriate.
National supports workable, consumer protection legislation for the real estate industry.

This bill does not achieve this objective.

Commentary Real Estate Agents Bill 25 Appendix Committee process The Real Estate Agents Bill was referred to the committee on 11 December 2007.

The closing date for submissions was 29 February 2008.

We received and considered 1,328 submissions from interested groups and individuals.

We heard 767 submissions, which included holding a hearing in Auckland.
We received advice from the Ministry of Justice.

The Regulations Review Committee reported to the committee on the powers con­ tained in clause 155(m).
Committee membership Lynne Pillay (Chairperson) Chris Auchinvole Charles Chauvel Christopher Finlayson Hone Harawira (non­voting member) Ann Hartley (until 29 February 2008) Nándor Tánczos Nicky Wagner Louisa Wall (from 5 March 2008) Real Estate Agents Bill Key to symbols used in reprinted bill As reported from a select committee text inserted by a majority text deleted by a majority Hon Clayton Cosgrove Real Estate Agents Bill Government Bill Contents Title Commencement Part 1 Interpretation and application Purpose of Act Interpretation Act binds the Crown Persons may not carry out real estate agency work unless licensed or exempt Exemption for lawyers and conveyancers Exemption for licensed auctioneers Exemption under regulations Part 2 Real Estate Agents Authority Establishment of Authority 14 Authority established 15 Authority a Crown entity Nature of Authority Authority’s functions 16 Authority’s functions 17 Membership of Authority Membership of Authority 185—2 Page 9 9 9 9 12 13 13 14 14 15 15 16 17 1 Real Estate Agents Bill Practice rules 26 27 28 29 29A 29B 29C 29D 30 31 Code of professional conduct and client care Continuing education Consultation in relation to practice rules Criteria in relation to approval of practice rules by Minister Power of Minister to amend practice rules Further provisions relating to practice rules Fees and levies Authority may prescribe fees Operational levy Disciplinary levy Further provisions relating to fees and levies Payment
 of fees, levies, and ﬁnes Powers of intervention Grounds for intervention Power to take possession of documents Administration of trust account in certain cases Appointment of interim administrator in certain cases Authority may direct audit of agent’s trust account Authority may inspect certain ﬁnancial records District Court Judge may order Authority to return documents 31AA High Court Judge may give directions to administrator of trust account or cancel appointment Registrar 31A 32 33 Authority to appoint
 Registrar Functions of Registrar Power of Registrar to delegate Part 3 Licensing How to become licensed Entitlement to licence Persons prohibited from being licensed Application for licence Applicant must advertise application Objections to issue of licence Written submission in response by applicant Registrar to hold hearing if notice of objection made Real Estate Agents Bill 41 Registrar to license applicant or decline application Provisions relating to licences Special provisions in respect of partnerships and companies Duty to produce evidence of issue of licence Term of licence Licence may not be transferred Effect of licences and status of licensees Agent’s licence Branch manager’s or salesperson’s licence Salespersons must be supervised Employment status of salesperson Review of section 49 Renewal of licence Renewal of licence Expiry of licence Cancellation, suspension, surrender of licence, etc Cancellation of licence Process for cancellation Effective date of cancellation Suspension of licence Mandatory suspension of licence Voluntary suspension of licence Effect of suspension of licence Effective date of suspension 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 Voluntary surrender of licence Surrender of licence 61 Temporary licence Temporary licence Register of licensees 62 63 64 65 66 67 Register of licensees Purpose of register Form of
 register Matters to be contained in register Obligation to notify Registrar Alterations to register 31 32 33 33 33 33 33 34 34 34 35 35 35 36 37 37 37 37 38 38 38 40 40 40 41 42 42 3 Real Estate Agents Bill 68 69 Search of register When search constitutes interference with privacy of individual Part 4 Complaints and discipline Interpretation 70 Meaning of licensee in this Part Unsatisfactory conduct and misconduct Unsatisfactory conduct Misconduct Complaints about licensees Complaints Assessment Committees
 Authority to appoint Complaints Assessment Committees Panel Constitution of Committees for consideration of matters before it Functions of Committees Procedure on receipt of complaint Decision to take no action on complaint Notice of decision Inquiry by Committee Notice to licensee Procedure of Committee Powers to call for information or documents Compliance with requirement to provide information or document Negotiation, conciliation, and mediation Evidence Power of Committee to determine complaint or allegation Hearings on papers Reference of complaint to Disciplinary Tribunal Application for suspension of licence Power of Committee to make orders Notice of determination Members of Committee not personally liable Protection and privileges of witnesses Privileges and immunities of counsel Enforcement of orders Non­payment of ﬁnes or costs 71 72 73 74 74A 74B Real Estate Agents Bill Real Estate Agents Disciplinary Tribunal Real Estate Agents Disciplinary Tribunal established Constitution of Tribunal for hearings Functions of Tribunal Services for Tribunal Further provisions in relation to Tribunal and its proceedings Proceeding before Tribunal Representation before Disciplinary Tribunal Hearings to be in public Restrictions
 on publication Evidence Determination of charges and orders that may be made if charge proved Appeal to Tribunal against determination by Committee Application to Tribunal to review determination by Registrar Notiﬁcation by Tribunal Enforcement of order Suspension of licence pending outcome of hearing Appeals against decisions of Tribunal Right of appeal High Court may make interim order Duties of Registrar if interim order made Determination of appeal Appeal to Court of Appeal on question of law Part 5
 Duties relating to real estate agency work Business to be identiﬁed 117A Agent to display required name information 118 119 120 121 124 Receipt of money and audit of accounts Duty of agent with respect to money received in course of business Money to be held by agent for 10 working days Agent to furnish account to client Agents’ trust accounts to be audited Agency agreements No entitlement to commission or expenses without agency agreement 55 56 56 56 56 57 57 57 57 58 59 60 61 61 61 62 63 63 63 63 63 64 65 65 66 66 68 5 Real Estate Agents Bill 125 126 127 128 129 130 131 132 133 134 Approved guide to be provided before agency agreement for residential property signed Agency agreement must disclose rebates, discounts, and commissions Regulations may make provisions in respect of agency agreements Client may cancel sole agency agreement by 5 pm next working day Parties may cancel sole agency agreements in respect of residential property 90 days after agreement is signed Disclosure of information as to transaction and conﬂicts of interest Licensee to give copy of contractual document Approved guide to be provided when contractual document provided Contracts for acquisition by licensee or related person may be cancelled Client to be provided with valuation Disclosure of other beneﬁts that licensee stands to gain from transaction 135 Meaning of licensee and person related to licensee in sections 132 to 134 Requirements where land sold by auction Application of sections
 137 to 141 Bidders Record Details to be established by proof of identity Conﬁdentiality of Bidders Record Bids may only be taken from registered bidders Vendor’s bids to be identiﬁed Part 6 Miscellaneous provisions Subpart 1—Offences and penalties General penalty Forfeiture for certain offences Offences to be punishable on summary conviction Offences relating to requirement to be licensed Offence to carry on business of agent, branch manager, or salesperson unless licensed or exempt 136 137 138 139 140 141
unless licensed or exempt Real Estate Agents Bill 147 148 Offence of holding out as agent, branch manager, or salesperson unless licensed or exempt Offence of employing or contracting unlicensed or non­exempt person as agent, branch manager, or salesperson Offences relating to application for licence 149 150 Offence to provide false or misleading information Offence to fail to notify change in circumstances Offences relating to Authority’s powers of possession and inspection of documents 150A Offence to fail to comply with requirement to give possession of documents 150B Offence to fail to comply with a requirement to produce ﬁnancial records Offences relating to requirements for real estate transactions 150C Offence to fail to provide information or document 151AB Offence to fail to pay person lawfully entitled to money received 151AAB Offence to fail to hold money 151 152 Offence to fail to disclose conﬂict of interest Offence to render false accounts Offences relating to auction of land 152A Offence to breach conﬁdentiality of Bidders Record 152B Offence to take a bid from unregistered bidder Offences relating to investigation 153 Offence to resist, obstruct, etc 154 Service of notice and documents Subpart 2—Service Subpart 2A—Civil remedies 154A Civil remedies not affected Subpart 3—Regulations 155 Regulations 80 80 80 81 81 81 81 82 82 82 82 83 83 83 83 84 84 7 Real Estate Agents Bill Subpart
 4—Provisions relating to repeal of Real Estate Agents Act 1976 Repeal of Real Estate Agents Act 1976 Repeal of Real Estate Agents Act 1976 Transfer of assets and liabilities 156 157 157A Membership of REINZ Winding up of Fidelity Guarantee Fund 158 159 Continuation of certain provisions of Real Estate Agents Act 1976 Claims in relation to Real Estate Agents Fidelity Guarantee Fund Public notice of last day for making claims 160 161 Winding up of Real Estate Agents Fidelity Guarantee 162 163 164 165 166 167 Fund
 Application of Real Estate Agents Fidelity Guarantee Fund on winding up Transitional provisions Continuation in ofﬁce for purposes of transitional provisions Agents licensed under Real Estate Agents Act 1976 Salespersons and branch managers approved under Real Estate Agents Act 1976 Continuing effect of permits issued under Real Estate Agents Act 1976 Applications pending at commencement of this section to be dealt with under Real Estate Agents Act 1976 168 169 167A Continuing effect of agency agreements entered into before repeal of Real Estate Agents Act 1976 Continuation of pending disciplinary proceedings Allegations about conduct before commencement of this section Amendments to other enactments 170 Schedule 1 Provisions relating to Tribunal Schedule 2 Amendments to other enactments 8 86 87 87 87 87 88 88 89 89 90 90 91 92 92 93 93 94 95 98 Real Estate Agents Bill Part 1 cl 4 The Parliament of New Zealand enacts as follows: 1 2 (1) (2) 3 (1) (2) 4 Title This Act is the Real Estate Agents Act 2007.
Commencement This Act comes into force on the day after the date on which 5 it receives the Royal assent.

Sections 14 to 28, 31A, 74, 74A, 97, and 155 of this Act come into force on the day after the date on which it receives the Royal assent.

The rest of this Act comes into force on the day that is 1 year 10 after the date it receives the Royal assent.
Part 1 Interpretation and application Purpose of Act The purpose of this Act is to promote and protect the interests 15 of consumers in respect of transactions that relate to real estate and to promote public conﬁdence in the performance of real estate agency work.

The Act achieves its purpose by— (a) (b) (c) regulating agents, branch managers, and salespersons: raising industry standards: providing accountability through a disciplinary process that is independent, transparent, and effective.
20 Interpretation In this Act, unless the context otherwise requires,— agency agreement means an agreement under which an agent is authorised to undertake real estate agency work for a client in respect of a transaction agent means a real estate agent licensed who holds, or is deemed to hold, a current licence as an agent under this Act Authority means the Real Estate Agents Authority estab­ lished by section 14 25 30 9 Part 1 cl 4 Real Estate Agents Bill branch manager means a person who holds, or is deemed to hold, a current licence as a branch manager under this Act client means the person for whom on whose behalf an agent carries out real estate agency work company means a company within the meaning of the Com­ 5 panies Act 1993, and includes a building society within the meaning of the Building Societies Act 1965, and a limited part­ nership registered under the Limited Partnerships Act 2008 contractual document, in relation to a transaction, means a document that contains or records an agreement or a proposed 10 agreement to enter into or effect the transaction, and includes a document that contains or records an offer that, on its accept­ ance, gives rise to such an agreement commission means remuneration by way of commission, fee, gain, or reward for services provided by an agent under an 15 agency agreement in respect of a transaction Complaints Assessment Committee or Committee means the a Complaints Assessment Committee established under section 74 crime involving dishonesty has the same meaning as in sec­ 20 tion 2(1) of the Crimes Act 1961 Disciplinary Tribunal or Tribunal means the Disciplinary Tribunal established under section 97 expenses means any sum or reimbursement for expenses or charges incurred in connection with services provided by an 25 agent in the capacity of agent former licensee means a person who was, but is no longer, a licensee, and includes a person who was a real estate agent, branch manager, or salesperson under the Real Estate Agents Act 1976 land includes all estates and
 interests, whether freehold or chattel, in real property, and includes any building and any part of a building, and any licence that is registrable under the Land Transfer Act 1952, and any occupation right agreement within the meaning of the Retirement Villages Act 2003; and, 35 in relation to any transaction relating to land that also relates to any goods, chattels, or other property, also includes those goods or chattels and that other property 30 10 Real Estate Agents Bill Part 1 cl 4 lawyer has the meaning given to it by section 6 of the Lawyers and Conveyancers Act 2006 licence means a licence granted under this Act to act as an agent, branch manager, or salesperson licensee means a person licensed under this Act as an agent, 5 branch manager, or salesperson Minister means the Minister who is for the time being respon­ sible for the administration of this Act ofﬁcer, in relation to a licensee that is a company,— (a) means every director, manager, or secretary of the com­ 10 pany who, on behalf and in the name of the company, carries on the company’s business as a real estate agent; and includes any person, however designated, who is re­ sponsible for the management of the company and any 15 person who is responsible for the management of any branch of the company, or (in relation to any company that carries on any other business in addition to its busi­ ness as a real estate agent) the person responsible for the management of the company’s real estate agency work 20 (b) (b) real estate agency work or agency work— (a) means any work done or services provided, in trade, for or on behalf of another person in respect of for the purpose of bringing about a transaction; and includes any work done by a branch manager or sales­ 25 person under the direction of, or on behalf of an agent to enable an the agent to do the work or provide the ser­ vices described in paragraph (a); but does not include— (i) (c) the provision of general advice or materials to as­ 30 sist
 owners to locate and negotiate with potential buyers; or the publication of newspapers, journals, maga­ zines, or websites that include advertisements for the sale or other disposal of any land or business; 35 or the broadcasting of television or radio pro­ grammes that include advertisements for the sale or other disposal of any land or business; or (ii) (iii) 11 Part 1 cl 5 Real Estate Agents Bill (iv) (v) the lending of money on mortgage or otherwise; or the provision of investment advice; or 5 register means the register required to be established by the Registrar under section 62 residential property means any property used, or intended to be used, exclusively or principally for residential purposes salesperson means a person who holds, or is deemed to hold, a current licence as a salesperson under this Act sole agency agreement means an agreement between an agent 10 and a client in which the client agrees to either or both of the following: not to instruct any other agent to act for the client in respect of the transaction to which the agreement relates (a) not to instruct any other agent to act for the client in re­ spect of the transaction to which the agreement relates: 15 to pay a commission or other reward to the agent in circumstances in which the transaction is not effected by the agent (b) transaction means anything done to bring about any 1 or more of the following: (a) 20 (b) (ba) (bb) (c) the sale, purchase, or other disposal or acquisition of a freehold estate or interest in land: the grant, sale, purchase, or other disposal or acquisition of a leasehold estate or interest in land (other than a tenancy to which the Residential Tenancies Act 1986 25 applies): the grant, sale, purchase, or other disposal or acquisition of a licence that is registrable under the Land Transfer Act 1952: the grant, sale, purchase, or other disposal or acquisition 30 of an occupation right agreement within the meaning of the Retirement Villages Act 2003: the sale,
 purchase, or other disposal or acquisition of any business (either with or without any interest in land).
35 Act binds the Crown This Act binds the Crown.

5 12 Real Estate Agents Bill Part 1 cl 7 6 Persons may not carry out real estate agency work unless licensed or exempt (1) A person must not carry out any real estate agency work unless the person— (a) is licensed under this Act and acts within the scope of 5 that licence; or is exempt from the licensing requirement under any of sections 7 to 1211 or under another enactment.
(b) (2) No person may hold himself or herself out to the public as (3) 7 (1) ready to carry out any agency work if that person is not li­ 10 censed under this Act or exempt from the licensing require­ ment under any of sections 7 to 1211 or under another en­ actment.

For the purposes of this section, it is immaterial as to whether or not a person carries out any agency work as a business in 15 its own right or as part of, or in connection with, any other business.
Compare: 1976 No 9 s 3(1) 20 Exemption for lawyers and conveyancers This section applies to any person who is— (a) a lawyer within the meaning of the Lawyers and Con­ veyancers Act 2006 or a person acting under the super­ vision of such a lawyer; or a conveyancing practitioner within the meaning of the Lawyers and Conveyancers Act 2006 or a person act­ 25 ing under the supervision of such a conveyancing prac­ titioner; or an incorporated ﬁrm within the meaning of the Lawyers and Conveyancers Act 2006.
(b) (c) (2) A person to whom this section applies may carry out any real 30 estate agency work but, in respect of the sale or other disposal of any land or business, is not entitled to be remunerated for that work by commission in addition to, or instead of, the pro­ fessional charges of that lawyer or conveyancing practitioner.
(3) When any person to whom this section applies carries out any 35 real estate agency work, that person— (a) (b) is deemed not to be doing so as an agent; and is not subject to any of the provisions of this Act; but 13 Part 1 cl 8 Real Estate Agents Bill (c) is deemed to be acting in his or her capacity— (i) as a lawyer within the meaning of the Lawyers and Conveyancers Act 2006; or as a person acting under the supervision of a lawyer within the meaning of the Lawyers and 5 Conveyancers Act 2006; or as a conveyancing practitioner within the mean­ ing of the Lawyers and Conveyancers Act 2006; or as a person acting under the supervision of a con­ 10 veyancing practitioner within the meaning of the Lawyer and Conveyancers Act 2006; or as an incorporated ﬁrm within the meaning of the Lawyers and Conveyancers Act 2006; and (ii) (iii) (iv) (v) (d) is subject accordingly to the provisions of the Lawyers 15 and Conveyancers Act 2006.
Compare: 1976 No 9 s 3(7), (8) Exemption for licensed auctioneers A person who is licensed as an auctioneer under the Auction­ eers Act 1928 may sell or offer to sell any land by auction.

20 Exemption for Landcorp Farming Limited Landcorp Farming Limited or any of its employees may carry out any real estate agency work in respect of any land of the Crown or any land of a State enterprise within the meaning of the State­Owned Enterprises Act 1986.
Compare: 1976 No 9 s 3(2)(d) Exemption granted by Authority A person may, in accordance with a permit granted by the Au­ thority, carry out real estate agency work involving a speciﬁed transaction, or a speciﬁed series of transactions.

Compare: 1976 No 9 s 3(2)(c) Exemption under regulations A person who is exempted under an Order in Councilby a regu­ lation made under section 12 155(1)(aa) may, in accordance with that order regulation, carry out real estate agency work.
25 30 35 8 9 10 11 14 Real Estate Agents Bill Part 2 cl 15 12 (1) Exemptions granted by Order in Council The Governor­General may, by Order in Council, exempt any person or class of persons from the requirement to be licensed under this Act.

(2) An Order in Council under subsection (1) may be made only 5 on the recommendation of the Minister given in accordance with section 13.

(3) An exemption under subsection (1) may be subject to any (4) 13 terms and conditions speciﬁed in the regulations.
The Governor­General may, by Order in Council, vary or re­ 10 voke an Order in Council made under subsection (1).
Recommendation by Minister The Minister must not make a recommendation under section 12(2) unless the Minister— is satisﬁed that— (a) (i) 15 there is little consumer beneﬁt to be gained by requiring the persons proposed to be exempted from the requirement to be licensed; and there are sufﬁcient processes in place to ensure competent and ethical conduct on the part of 20 those persons; and (ii) (b) has consulted with representatives of organisations that, in the opinion of the Minister, have an interest in the proposed exemption.
Part 2 Real Estate Agents Authority Establishment of Authority 14 Authority established This section establishes the Real Estate Agents Authority.

Nature of Authority 15 (1) Authority is a Crown entity The Authority is a Crown entity for the purposes of section 7 of the Crown Entities Act 2004.

25 30 15 Part 2 cl 16 Real Estate Agents Bill (2) The Crown Entities Act 2004 applies to the Authority except to the extent that this Act expressly provides otherwise.
Authority’s functions Authority’s functions The functions of the Authority are to— (a) 5 administer the licensing regime for agents, branch man­ agers, and salespeople, including the granting and re­ newal of licence applications; and appoint a Registrar of the register of licensees; and establish, keep, and maintain the register and carry out 10 any other functions in relation to the register; andensure that the register of licensees is established, kept, and maintained; and develop practice rules for the Minister’s approval and maintain these rules for licensees, including ethical re­ 15 sponsibilities; and set fees and levies; and develop consumer information on matters relating to real estate transactions, including approved guides on agency agreements and sale and purchase agreements; 20 and develop and provide consumer information on matters relating to the provision of real estate services, includ­ ing providing the public with information on how to make a complaint; and set professional standards for agents; and investigate and initiate proceedings in relation to of­ fences under this Act and any other enactment; and investigate of its own motion any act, omission, allega­ tion, practice, or other matter which indicates or appears 30 to indicate unsatisfactory conduct or misconduct on the part of a licensee; and provide procedures for the lodging of complaints; and receive complaints relating to the conduct of licensees; and carry out any other function that the Minister may direct the Authority to perform in accordance with section 112 of the Crown Entities Act 2004; and 35 25 (ab) (b) (c) (d) (e) (f) (g) (h) (ha) (i) (j) (k) 16 (1) 16 Real Estate Agents Bill Part 2 cl 18 (2) (3) (l) carry out any other functions that may be conferred on the Authority by this Act or any other enactment.
The Authority may, where it considers it appropriate to do so, consult with representatives of the real estate industry about any matter that relates to the functions of the Authority.

For the avoidance of doubt, nothing in subsection (1) affects the role of an industry training organisation for the time being recognised under the Industry Training Act 1992 as an industry training organisation for the real estate industry.
Membership of Authority 5 10 17 Membership of Authority (1) (2) Members of the Authority are the board for the purposes of the The Authority consists of no more than 7 members.

(3) Crown Entities Act 2004.

The Minister must appoint 1 member to be the chairperson 15 of the board and that member must be a barrister and solici­ torlawyer of not less than 7 years’ legal experience.

(3A) The Minister must appoint at least 2 members who are li­ (4) 18 (1) (2) censees or former licensees.
In addition to the criteria for appointments set out in section 20 29 of the Crown Entities Act 2004, the Minister must, when making any appointment, consider the need for the Authority to represent the views of a broad range of interests, including consumer and industry interests.

Practice rules 25 Code of professional conduct and client care The Authority may, by notice in the Gazette, make any prac­ tice rules to enable it to discharge the duty imposed on it by subsection (2).
The Authority must have rules that include or provide for a 30 code of professional conduct and client care, which will be a reference point for discipline and which will focus on, but need not be limited to, the duties of agents to their clients.
17 Part 2 cl 19 Real Estate Agents Bill Continuing education The Authority may, by notice in the Gazette, make practice rules that— (a) provide for the times or frequencies at which continu­ ing education must be undertaken and the topics to be 5 addressed: require that particular continuing education be under­ taken, or (in addition or as an alternative) require that the continuing education comply with speciﬁed require­ ments: exempt, or provide for the exemption of, any agent, branch manager, or salesperson from all or any prac­ tice rules made under paragraph (b).
10 (b) (c) Consultation in relation to practice rules Practice rules are made by the Authority with the approval of 15 the Minister and after consultation with— (a) agents, branch managers, and salespersons that the Au­ thority considers to be representative of the real estate industry; and any other persons or groups that the Minister may direct.
20 (b) Criteria in relation to approval of practice rules by Minister The Minister must, in deciding whether to approve any prac­ tice rules, have regard, among other things, to— (a) the principle that it may be necessary or expedient to im­ 25 pose duties or restrictions on agents, branch managers, or salespersons in order to protect the interests of con­ sumers: the principle that the burden of a duty or restriction should be proportionate to the beneﬁts that are expected 30 to result from the imposition of the duty or restriction: the consistency of the rules with New Zealand’s inter­ national obligations: the provisions of this Act and all rights and obligations of agents under the law.
35 (b) (c) (d) 19 20 21 18 Real Estate Agents Bill Part 2 cl 23 22 (1) Power of Minister to amend practice rules If the Minister considers any practice rules to be deﬁcient in any respect, the Minister may, subject to subsections (2) and (3), make any amendments to those rules that are necessary to remedy the deﬁciency.

(3) (2) Amendments made under subsection (1) to practice rules may relate only to matters in respect of which practice rules may be made.
The Minister, in deciding whether to make amendments under subsection (1) to any practice rules,— (a) must consult the Authority; and (ab) may consult with agents, branch managers, and sales­ persons that the Minister considers to be representative of the real estate industry; and 5 10 (b) may consult with any other persons or groups that the 15 Minister thinks ﬁt.
23 (1) (2) (3) 20 Further provisions relating to practice rules Every notice under section 18 or 19 comes into force on a date speciﬁed in the notice, being not less than 28 days after the date of publication of the notice in the Gazette.

Every notice under section 18 or 19 is a regulation for the purposes of the Regulations (Disallowance) Act 1989, but is not a regulation and for the purposes of the Acts and Regula­ tions Publication Act 1989.
The Authority must ensure that an up­to­date version of each 25 notice that the Authority has published under either of sec­ tions 18 or 19 is— (a) (b) available on the Authority’s website; and available at the ofﬁce of the Authority during business hours, so that members of the public may— (i) (ii) inspect the notice free of charge; or obtain a photocopy of the notice for a reasonable fee.
30 19 Part 2 cl 24 Real Estate Agents Bill Fees and levies 24 (1) Authority may prescribe fees The Authority may from time to time, by notice in the Gazette, prescribe the fees payable for any action that a person wishes the Registrar to perform under this Act.

5 (2) Different fees may be prescribed under this section for differ­ ent kinds of action and for different classes of person, depend­ ing on the kind of licence that they have, or wish to obtain or renew.
(3) Any notice prescribing any fee under this section may exempt 10 any class or classes of person from liability to pay any such fee, and may provide for the waiver or refund of any such fee.
25 (1) Operational levy The Authority may from time to time, by notice in the Gazette, impose on every licensee an operational levy of any amount 15 that the Authority thinks ﬁt for the purpose of funding the costs arising from any or all of the following: (a) (b) (c) the performance of the functions of the Authority: the performance of the functions of the Registrar: any investigation by, or proceeding of, the a Complaints 20 Assessment Committee.
(2) Any notice imposing any levy under this section may do either or both of the following: (a) (b) prescribe different amounts as the levy payable by dif­ ferent classes of licensee: exempt from liability to pay that levy, in whole or in part, any class or classes of licensee, and may provide for the waiver or refund of the whole or part of that levy.
25 26 (1) Disciplinary levy The Authority may from time to time, by notice in the Gazette, 30 impose on every licensee a disciplinary levy of any amount that the Authority thinks ﬁt for the purpose of funding the costs arising from any proceeding of the Tribunal.
(2) Any notice imposing any levy under this section may do either or both of the following: 35 20 Real Estate Agents Bill Part 2 cl 28 (a) (b) prescribe different amounts as the levy, in whole or in part, payable by different classes of licensee: exempt from liability to pay that levy, in whole or in part, any class or classes of licensee, and may provide for the waiver or refund of the whole or part of that levy.
5 Compare: 2003 No 48 s 131 10 Further provisions relating to fees and levies Every notice under any of sections 24 to 26 comes into force on a date speciﬁed in the notice, being not less than 28 days after the date of publication of the notice in the Gazette.

Every notice under any of sections 24 to 26 is a regulation for the purposes of the Regulations (Disallowance) Act 1989, but is not a regulation and for the purposes of the Acts and Regulations Publication Act 1989.
The Authority must ensure that an up­to­date version of each 15 notice that the authority has published under any of sections 24 to 26 is— (a) (b) available on the Authority’s website; and available at the ofﬁce of the Authority during business hours, so that members of the public may— (i) (ii) inspect the notice free of charge; or obtain a photocopy of the notice for a reasonable fee.
20 Every levy imposed by the Authority under sections 24 to 26, is payable, and recoverable as a debt due, to the Authority.

25 The Authority receives any levies imposed under section 26 as agent for the chief executive of the Ministry of Justice.

If any fee is payable to the Authority under this Act, the Regis­ trar may decline to do any act, or to permit any act to be done, or to receive any document in respect of which that fee is 30 payable, until the fee is paid.
Compare: 2003 No 48 s 132 27 (1) (2) (3) (4) (5) (6) Payment of fees, levies, and ﬁnes 28 (1) All fees and levies required to be paid under this Act are payable to the Registrar or the Authority.

35 21 Part 2 cl 29 Real Estate Agents Bill (2) All ﬁnes imposed on a person by the a Complaints Assessment Committee or by the Disciplinary Tribunal are payable to the Registrar.
Powers of intervention Authority may take possession of and inspect agent’s ﬁnancial records and documents Grounds for intervention This section applies in any case where the Authority is satis­ ﬁed, in respect of any agent,—The grounds for exercising a power conferred by any of sections 29A to 29C in respect of any agent are— (a) 5 10 15 that there are reasonable grounds to believe that he or she the agent, or, if the agent is a company, any ofﬁcer of the company, has been guilty of theft or of any improper conduct in relation to the money or other property of any other person; or that there are reasonable grounds to believe that any money or other property entrusted to the agent has been stolen by his or her employee, salesperson, or person acting on behalf of the agent, or, if the agent is a com­ pany, by any ofﬁcer, employee, salesperson, or person 20 acting on behalf of agent of the company; or that he or she the agent is, owing to physical or mental disability, unable to properly administer his or her the agent’s trust account; or that he or she the agent has died; or that he or she the agent has been adjudicated a bankrupt or has been subject to subpart 4 of Part 5 of the Insol­ vency Act 2006, or has been placed in receivership or liquidation under the Companies Act 1993; or if the agent is a company, that the company has been put 30 into liquidation; or if the agent is a building society, that the building soci­ ety is being dissolved; or that the licence of the agent has been cancelled or sus­ pended;
 or that the agent has ceased to carry on business and has neglected to wind up his or her the agent’s trust account after reasonable notice has been given to him or her the 35 25 (b) (c) (d) (e) (f) (g) (h) (i) 29 22 Real Estate Agents Bill Part 2 cl 29B (2) agent by the Authority requiring him or her the agent to do so; or the agent has not administered the trust account in ac­ cordance with this Act and any regulations made under it; or the agent operates a trust account that has been admin­ istered fraudulently or recklessly.
5 (j) (k) In any case to which this section applies, the Authority may, if in its opinion it is appropriate to do so, take possession of any ﬁnancial records, deeds, or other documents belonging to 10 the agent or held in the course of his or her business in his or her possession or under his or her control or, if the agent is a company, in the possession or under the control of any ofﬁcer, employee, or agent of the company.
Compare: 1976 No 9 s 88 15 (2) 29A Power to take possession of documents (1) In this section, documents includes ﬁnancial records and deeds.
If the Authority is satisﬁed that 1 or more of the grounds spe­ ciﬁed in section 29 apply to an agent, the Authority may, if in 20 its opinion it is appropriate to do so, by notice, require any per­ son to give the Authority possession of any documents that— (a) (b) belong to the agent; or in the course of the agent’s business, are, or have been, in the possession or control of— (i) (ii) the agent; or if the agent is a company, any ofﬁcer, employee, or person acting on behalf of the company.
25 Compare: 1976 No 9 s 88(2) 29B Administration of trust account in certain cases (1) If the Authority is satisﬁed that 1 or more grounds speciﬁed in section 29 apply to an agent, the Authority may, if it is satis­ ﬁed that it is appropriate, make an order appointing a suitable person as the administrator of the agent’s trust account for a period speciﬁed by the Authority.
30 35 (2) A copy of every order made by the Authority under this section must be served on the banker, and on receipt of that copy the 23 Part 2 cl 29C Real Estate Agents Bill bank in which the trust account is kept must allow the person appointed by the order to administer the trust account.
Compare: 1976 No 9 s 33 29C Appointment of interim administrator in certain cases (1) The Authority may make an order appointing an appropriate 5 person as an interim administrator of an agent’s trust account if the Authority reasonably suspects that— (a) (b) any money entrusted to the agent may be at risk; and 1 or more of the grounds speciﬁed in section 29 apply to that agent.
10 (2) The function of the interim administrator is to preserve the assets until the termination of the order under subsection (1).

(3) An order under subsection (1) is terminated when— (a) the Authority notiﬁes the agent concerned that the Au­ thority no longer considers that money entrusted to the 15 agent is at risk; or an order is made under section 29B.

(b) Section 29B(2) applies, with all necessary modiﬁcations, to an order made under this section.
(4) 29D Authority may direct audit of agent’s trust account 20 The Authority may direct an audit of an agent’s trust account at any time and appoint an auditor to carry out that audit.
Authority may inspect books relating to money received by agent certain ﬁnancial records This section applies if the Authority has reasonable grounds to 25 believe that any money entrusted to an agent has been stolen— by the agent or the agent’s employee or agent; or (a) in the case of a company that is an agent, by an ofﬁcer, (b) employee, or agent of the company.
The Authority may inspect all ﬁnancial records or other 30 records that relate to any money received by any of the per­ sons speciﬁed in subsection (3), whether or not the money has been paid into a private account or a trust account at a bank.

The persons are as follows: 35 30 (1) (2) (3) 24 (1) (2) Real Estate Agents Bill Part 2 cl 31 (a) (b) the agent or the agent’s employee or agent: in the case of a company that is an agent, an ofﬁcer, employee, or agent of the company.
This section applies if the Authority has reasonable grounds to believe that any money entrusted to an agent or to any person 5 acting on behalf of the agent has been stolen by any of the following persons: (a) by the agent or by a person who is, or has been, em­ ployed or engaged by the agent: in the case of a company that is an agent, by a person 10 who is, or has been, employed or engaged by the com­ pany.
(b) The Authority may, by notice, require any person (including, without limitation, any banker) who has possession or control of ﬁnancial records or other records that relate to any money 15 received by any person speciﬁed in subsection (1) to produce those records to a person authorised by the Authority and to permit that person to inspect and copy those records.
Compare: 1976 No 9 s 89(1) 31 Authority to give receipt for documents taken into possession District Court Judge may order Authority to return documents 20 (1) Upon taking possession of any document under section 30 29A, the Authority must, without delay, serve on the agent concerned a notice giving particulars of the document and the 25 date on which it was taken into the Authority’s possession.
If any such document is the property of a ﬁrm of agents in which the agent is a partner, a copy of the notice must be served on each partner in the ﬁrm.

(2) (3) Within 14 days after the notice has been served, the agent, or 30 any of his or her partners, may apply to a District Court Judge for an order directing the Authority to return any document speciﬁed in the order to the person from whom it was received, or for any other order that the District Court Judge thinks ﬁt.
Compare: 1976 No 9 s 90 35 25 Part 2 cl 31AA Real Estate Agents Bill 31AA High Court Judge may give directions to administrator (1) of trust account or cancel appointment If the Authority makes an order, under section 29B or 29C, appointing an administrator or interim administrator, the Au­ thority must, without delay, serve a copy of the order on— (a) (b) the agent concerned; and if the agent carries out agency work in partnership, any partner in the partnership; and any person who, to the knowledge of the Authority, is or may be entitled to any money held in the trust account 10 administered by the administrator.
(c) 5 (3) (2) A person on whom a copy of the order is served may, within 14 days after service of the order, apply to the High Court for an order under subsection (4).
The following persons may, at any time while an order under 15 section 29B or 29C is in force, apply for an order under subsection (4): (a) (b) (c) the administrator or interim administrator: the banker with whom the trust account is kept: a person who claims to be entitled to any money held 20 in the trust account, but who has not been served under subsection (1)(c).
(4) On an application under this section, a High Court Judge may, by order— (a) direct the administrator, interim administrator, or the 25 banker on the action to be taken in relation to the admin­ istration of the trust account (including the winding­up of that account): rescind or vary the order of the Authority by which the administrator or interim administrator was appointed.
30 (b) 31A Authority to appoint Registrar Registrar The Authority must appoint one of its employees as Registrar of the register of licensees.
Functions of Registrar The functions of the Registrar are to— 35 32 26 Real Estate Agents Bill Part 2 cl 33 (a) establish, keep, and maintain the register under section 62; and (c) (b) make decisions about whether persons meet the require­ ments for licensing or continued licensing; and issue, cancel, and suspend licences, and to perform the 5 other functions relating to licensing under Part 3; and provide administrative support for the board of the Au­ thority sufﬁcient to enable the board to perform its func­ tions efﬁciently and effectively; and perform any other function conferred on the Registrar 10 by this Act or any other enactment.
(d) (e) 33 (1) Power of Registrar to delegate Except as provided in subsection (1A), the The Registrar may delegate to any person (whether an employee of the State services or not), either generally or particularly, any of the 15 Registrar’s functions, duties, and powers except the power of delegation.
(1A) The Registrar must not delegate its general power of delega­ tion and must not, without the prior approval of the Authority, delegate any of its functions, duties, and powers set out in sub­ 20 section 32(b) or (c).
(2) A delegation— (a) must be in writing; and (b) may be made subject to any restrictions and conditions (c) (d) that the Registrar thinks ﬁt; and is revocable at any time, in writing; and does not prevent the performance or exercise of a func­ tion or duty or exercise of any power by the Registrar.
(3) A person to whom any functions, duties, or powers are dele­ 25 gated may perform those functions and duties and exercise 30 those powers in the same manner and with the same effect as if they had been conferred directly by this Act and not by dele­ gation.

(4) A person who appears to act under a delegation is presumed to be acting in accordance with its terms in the absence of 35 evidence to the contrary.
27 Part 3 cl 34 Real Estate Agents Bill Part 3 Licensing How to become licensed Entitlement to licence 34 (1) An individual may be licensed as an agent or branch manager 5 if the individual satisﬁes the Registrar that he or she— (a) (b) has attained the age of 18 years; and is not prohibited from holding a licence under section 35; and is a ﬁt and proper person to hold a licence; and has the prescribed qualiﬁcations; and has obtained 2 years’ experience in the real estate sector real estate agency work within the 10 years preceding the application to be licensed as an agent or branch man­ ager under this Act.
(c) (d) (e) (2) An individual may be licensed as a salesperson if the indi­ vidual satisﬁes the Registrar that he or she— (a) (b) has attained the age of 18 years; and is not prohibited from holding a licence under section 35; and is a ﬁt and proper person to hold a licence; and has the prescribed qualiﬁcations.
(c) (d) 10 15 20 (3) A company or a body corporate may be licensed as an agent if at least 1 director or member, as the case may be, ofﬁcer of the governing body of the body corporate company satisﬁes 25 the Registrar of the matters set out in subsection (1).
Compare: 1976 No 9 s 17(1),(3) Persons prohibited from being licensed The following persons are not eligible to hold a licence: (a) a person who has been convicted, whether in New 30 Zealand or another country, of a crime involving dis­ honesty within the 10 years preceding the application for a licence: a person who has been convicted of an offence under sections 14, 17 to 22, or 24 to 26 of the Fair Trading 35 Act 1986, within the 5 years preceding the application for a licence: (b) 35 (1) 28 (c) (d) (e) (f) (g) (h) (i) Real Estate Agents Bill Part 3 cl 36 a person whose licence or certiﬁcate of approval has been cancelled within the preceding 5 years or whose licence is suspended at the time of application under the Real Estate Agents Act 1976: a person whose licence has been cancelled within the 5 last 5 years or whose licence is suspended at the time of application under this Act: a person subject to an order made, or a notice given, under the law of a prescribed country, State, or territory outside New Zealand, within the preceding 5 years who 10 is prohibited from acting as an agent, branch manager, or salesperson (or equivalent) in that country, State, or territory, unless the person satisﬁes the Authority that he or she is a ﬁt and proper person to hold a licence: a person who is an ofﬁcer of a licensee company, a chief 15 executive ofﬁcer of a licensee company, or a branch manager and who has been disqualiﬁed from holding a licence or whose licence has been suspended under the Real Estate Agents Act
 1976: a person who is prohibited from being a director or pro­ 20 moter of, or being concerned or taking part in the man­ agement of, an incorporated body under the Compan­ ies Act 1993, the Securities Markets Act 1988, or the Takeovers Act 1993: a company, or other corporate entity or partnership, 25 where a person concerned in its management is dis­ qualiﬁed from being licensed in his or her own right under paragraph (a): a person described in section 7(1) (which relates to the exemption of lawyers and conveyancers from this 30 Act) who is subject to the provisions of the Lawyers and Conveyancers Act 2006.
(2) A person is not eligible to hold an agent’s licence if he or she is an undischarged bankrupt or is subject to Subpart 4 of Part 5 of the Insolvency Act 2006.
Compare: 1976 No 9 s 17(2) 35 36 Application for licence An application for a licence under this Part must— 29 Part 3 cl 37 Real Estate Agents Bill be made to the Registrar in the prescribed form; and (a) (ab) be accompanied by a declaration made in the form pre­ scribed in the Oaths and Declarations Act 1957 that the person is eligible to obtain a licence by virtue of sec­ tion 34 and is not prohibited from being licensed under 5 section 35; and be accompanied by the prescribed fee (if any).
(b) Compare: 1976 No 9 s18 37 Applicant must advertise application The applicant must advertise the application for a licence in 10 the prescribed manner.

Compare: 1976 No 9 s 20(1) Objections to issue of licence 38 (1) A person may, within the prescribed time and in the prescribed manner, give the Registrar written notice of his or her desire 15 to object to the issue of a licence to the applicant.
(2) No objection may be made under subsection (1) except on 1 or more of the following grounds: (a) (b) (c) (d) 20 that the applicant is not eligible to obtain a licence by virtue of section 34 or 35: if the applicant is an individual, that the applicant is not, by reason of his or her personal character or ﬁnancial position, a proper person to be the holder of a licence: if the applicant is a company, that it is not, by reason of its ﬁnancial position, or of the nature of any other 25 business carried on or to be carried on by it, a proper person to be the holder of a licence: if the applicant is a company, that any person who will be an ofﬁcer of the company if the application is granted is not, by reason of his or her personal character or ﬁ­ 30 nancial position, a proper person to be an ofﬁcer of a licensee company.
The notice of objection must include a statement of the grounds relied on and any prescribed matters.

The Registrar must send a copy of the notice to the applicant.

35 Compare: 1976 No 9 s 20(2)–(5) (3) (4) 30 Real Estate Agents Bill Part 3 cl 41 39 Written submission in response by applicant (1) An applicant to whom a notice of objection has been sent may, within the prescribed time, send to the Registrar a written sub­ mission in response to the notice of objection.
If an applicant sends a written response to the Registrar, the 5 Registrar must send a copy of it to every person who gave notice of an objection.
(2) 40 41 (1) (2) Registrar to hold hearing if notice of objection made If notice of an objection to an application is made the Registrar must,— (a) as soon as practicable, appoint a time and place for hear­ ing the application and objection; and give at least 14 days’ notice of the hearing to the ap­ plicant and to any person objecting to the issue of the licence; and hear the applicant and any person objecting to the issue of the licence, if required to do so; and consider the evidence put before him or her, including any written submission in response that is provided by the applicant under section 39.
(b) (c) (d) 10 15 20 Registrar to license applicant or decline application The Registrar must grant a licence to the applicant if, after hearing any objection to the issue of a licence, the Registrar is satisﬁed that the applicant— (a) is entitled to be licensed as an agent, branch manager, 25 or salesperson under section 34; and is not prohibited from being licensed as an agent, branch manager, or salesperson under section 35.
(b) The Registrar, on granting the licence, must— (a) an agent’s licence; or a branch manager’s licence; or a salesperson’s licence; and issue to the applicant 1 of the following classes of li­ 30 cence: (i) (ii) (iii) send to the applicant evidence of the issue of that li­ 35 cence, in the prescribed form; and enter the applicant’s name in the register; and (b) (c) 31 Part 3 cl 42 Real Estate Agents Bill (3) (d) issue a registration number to the applicant and notify the applicant as to what the registration number is.
If the Registrar is not satisﬁed that the applicant is entitled to be licensed as an agent, branch manager, or salesperson, the Registrar must— (a) (b) decline the application; and notify the applicant of the Registrar’s decision and the reasons for it; and notify the applicant of his or her right of appealreview by the Tribunal against the decision.
(c) 5 10 Compare: 1976 No 9 s 23 Provisions relating to licences 42 Special provisions in respect of partnerships and companies (1A) (1) A person must not, after the issue to him or her of a real es­ 15 tatean agent’s licence, enter into partnership with any person in respect of his or her business as an agent without the prior approval of the Authority; and the Authority must refuse to grant its approval unless it is satisﬁed that the proposed part­ ner holds an agent’s licence.
If a company is the holder of an agent’s licence, at least 1 ofﬁcer of the company must, at any given time, hold an agent’s licence.

If a company or body corporate is the holder of an agent li­ cence, a person who was not, at the date of the issue of the 25 licence, an ofﬁcer of the company may not act in that capacity in respect of that company without the prior approval of the Authority on an application made in that behalf.
(2) 20 (3) Under subsection (2), the Authority must refuse to grant its approval unless it is satisﬁed that— (a) (b) the person is eligible to apply for or obtain an agent licence; or if the person is not eligible to apply for or obtain a li­ cence, the real estate agency business of the company is disproportionately small in relation to any other busi­ 35 ness of the company.
30 Compare: 1976 No 9 s 30 32 Real Estate Agents Bill Part 3 cl 47 43 Duty to produce evidence of issue of licence A licensee must, if asked by any person, produce for inspection by that person either— (a) the evidence of the issue of a licence sent to that person under section 41; or a copy of that evidence.
(b) Term of licence 44 (1) A licence continues in force for a period of 12 months com­ mencing on the date that the Registrar enters the applicant’s name in the register, unless— (a) (b) (c) the licence is cancelled under section 53; or the licensee is suspended under section 56 or 57; the licence is surrendered under section 60.

(2) A licence may be renewed for further 1­year periods of 12 months in accordance with section 51.
45 Licence may not be transferred A licence may not be transferred and may not vest by operation of law in any person other than the person to whom the licence was granted.

5 10 15 Effect of licences and status of licensees 20 Agent’s licence 46 (1) A licence as an agentAn agent’s licence authorises the licensee to carry out real estate agency work on his or her own account, whether in partnership or otherwise.
The licence also authorises the licensee to sell or to offer to 25 sell any land by auction without having to be licensed under the Auctioneers Act 1928.

(2) Branch manager’s or salesperson’s licence 47 (1) A licence as a branch manager or salespersonA branch man­ ager’s licence or a salesperson’s licence authorises the licensee 30 to carry out real estate agency work for or on behalf of an agent.
33 Part 3 cl 48 Real Estate Agents Bill (2) The licence also authorises the licensee to sell or to offer to sell, on behalf of the agent, any land by auction without having to be licensed under the Auctioneers Act 1928.

Salespersons must be supervised 48 (1) A salesperson must, in carrying out any agency work, be prop­ 5 (2) erly supervised and managed by an agent or a branch manager.
In this section properly supervised and managed means that the agency work is carried out under such direction and con­ trol of either a branch manager or an agent as is sufﬁcient to ensure— (a) (b) that the work is performed competently; and that the work complies with the requirements of this Act.

10 Employment status of salesperson 49 (1) A salesperson may be employed by an agent as an employee 15 or may be engaged by an agent as an independent contractor.
(2) Any written agreement between an agent and a salesperson is conclusive so far as it expressly states that the relationship between the agent and the salesperson is that of employer and independent contractor.

20 (3) An agent who engages a salesperson as an independent con­ tractor is liable for the acts and omissions of the salesperson in the same manner, and to the same extent, as if the agent had employed the salesperson as an employee.
Review of section 49 The chief executive of the Ministry of Justice must, not later than the date that is 5 years after the commencement of this Act section, report to the Minister as to whether— section 49 continues to be appropriate; and (a) in particular, whether the employment status of sales­ 30 (b) persons should be determined by the Employment Re­ lations Act 2000.
25 50 34 Real Estate Agents Bill Part 3 cl 53 Renewal of licence Renewal of licence 51 (1) An application for renewal of a licence must, before the date on which the licence expires,— be made to the Registrar in the prescribed form; and (a) (b) be accompanied by the prescribed fee (if any).

Subject to subsection (2A), sections 34, 35, and 41 ap­ ply, with any necessary modiﬁcations, to an application for renewal of a licence.
5 (2) (3) (2A) The Registrar must, in addition to the matters speciﬁed in sec­ 10 tion 41(1), be satisﬁed that the applicant for renewal of a licence has completed any continuing education required by practice rules made by the Authority pursuant to section 19.

If an application for renewal of a licence has been made but not determined before the date on which the licence is due to 15 expire, the licence continues in force until the application is determined.
The grant of a renewal of a licence takes effect from the date of expiry of the previous licence.

Compare: 1976 No 9 s 29 (4) 20 52 53 Expiry of licence If no application for the renewal of a licence is made on or be­ fore the date on which the licence would otherwise expire, the Registrar must record the expiry of the licence in the register as soon as practicable after that date.
Cancellation, suspension, surrender of licence, etc Cancellation of licence The Registrar must cancel a person’s licence and remove that person’s name from the register,— (a) (b) in the case of an individual, if the person dies; or if the person gives written notice to the Registrar re­ questing that the Registrar cancel his or her licence; or if the person has failed to maintain the prescribed quali­ ﬁcations; or (c) 25 30 35 35 Part 3 cl 54 Real Estate Agents Bill (ca) (d) (e) (f) (g) if the person has failed to complete any continuing edu­ cation required by practice rules made by the Authority pursuant to section 19; or in accordance with section 96; or in accordance with section 107(2)(b); or if the licence was granted on the basis of any false or fraudulent representation or declaration made orally or in writing; or if the person has failed to pay any prescribed fees or levies, or payment of the fee or levy has subsequently 10 been dishonoured.
5 Process for cancellation The process for cancellation of a licence, other than by deter­ mination of the Tribunal under section 107 or at the request of the licensee under section 53(b), is as follows: (a) the Registrar must give the licensee written notice of the Registrar’s intention to cancel the licence; and the notice must— (i) contain or be accompanied by a statement of the Registrar’s reasons for the cancellation; and state that the licensee has 10 working days within which to make written representations to the Registrar as to why the licence should not be cancelled; and (ii) 15 20 if any written representations are made by the licensee 25 in accordance with paragraph (b)(ii), the Registrar must take those representations into account when de­ ciding whether to cancel the licence; and the Registrar must then decide whether to cancel the li­ cence and notify the licensee of the Registrar’s decision 30 as soon as practicable.
(b) (c) (d) If the Registrar decides to cancel the licence, the Registrar must— (a) include in the notice referred to in subsection (1)(d) the grounds for the decision and the date on which the 35 cancellation takes effect; and specify in the notice that the licensee has a right of ap­ peal to the Tribunal under section 109; and (b) 54 (1) (2) 36 Real Estate Agents Bill Part 3 cl 58 (c) record the cancellation on the register as soon as prac­ ticable.
55 Effective date of cancellation The cancellation takes effect on the date speciﬁed by the Registrar in the notice given to the licensee under section 5 54(1)(d), which must be a date after the date of that notice.

Suspension of licence 56 Mandatory suspension of licence The Registrar must, on receiving notice from the Tribunal that the licence of a licensee has been suspended under section 10 107(2)(c) or 112, record that suspension on the register for the period speciﬁed in the notice.
Voluntary suspension of licence 57 (1) A licensee may, by written notice to the Registrar, request that (2) the Registrar suspend his or her or its licence for a period spe­ 15 ciﬁed in the notice.

The Registrar must suspend the person’s licence and record the suspension in the register for that speciﬁed period.

(3) A person whose licence is suspended under this section may, (4) by written notice to the Registrar, request that the Registrar 20 revive that person’s licence.
The Registrar must then revive that person’s licence unless there is some other ground for cancellation or suspension of that person’s licence under section 53 or 56.

Effect of suspension of licence 58 (1) A person is not a licensed agent, branch manager, or salesper­ son for the purposes of this Act for the period during which his or her licence is suspended.
25 (2) At the end of the period of suspension the person’s licence is immediately revived unless there is some other ground for can­ 30 cellation or suspension of that person’s licence under section 53 or 56.

37 Part 3 cl 59 Real Estate Agents Bill 59 (1) (2) Effective date of suspension The suspension of a licence under section 56 takes effect on the date notiﬁed in the Tribunal’s decision communicated under section 110 or 112.
The suspension of a licence under section 57 takes effect on 5 the date the suspension is recorded in the register.

Surrender of licence Voluntary surrender of licence 60 (1) A licensee may, by written notice to the Registrar, surrender his or her licence.

10 (2) A written notice under subsection (1) must be accompanied (3) (4) (5) by the licence.

The Registrar must cancel the person’s licence and record the cancellation in the register.
The cancellation takes effect on the date the cancellation is 15 recorded in the register.
The surrender of a licence under this section does not affect the licensee’s liability— (a) to pay any fees or other money payable or to be payable in accordance with this Act on or before the date on 20 which the licence would, but for its surrender, expire: to perform any obligation required to be performed by him or her by or under this Act on or before that date: for any act done or default made before the date on which the licence ceased to have effect.
(b) (c) 25 Temporary licence Temporary licence 61 (1) A reference in this section to a licensee is a reference to a licensee who is an agent.
(2) Any of the following persons may apply to the Author­ 30 ityRegistrar in the prescribed form for permission to carry on or appoint some other person to carry on the licensee’s business as an agent for a period speciﬁed by the Author­ ityRegistrar: 38 Real Estate Agents Bill Part 3 cl 61 (a) (b) (c) (d) (e) (f) (g) in the case of a licensee who is a person subject to a property order under the Protection of Personal and Property Rights Act 1988, the manager of his or her es­ tate; or in the case of a licensee in respect of whom a property 5 order is in force under the Protection of Personal and Property Rights Act 1988, the manager of his or her estate; or in the case of a licensee who is deceased, his or her personal representative; or in the case of a licensee who has been adjudicated bankrupt, his or her assignee in bankruptcy; or in the case of a licensee company that is in liquidation or receivership, the liquidator or receiver of that company, as the case may be; or in the case of a licensee who is sick, absent, or is other­ wise temporarily prevented from carrying on business as a real estate agent, his or her nominated representa­ tive; or in the case of a licensee building society that is being 20 dissolved, the liquidator or other person conducting its dissolution, or a trustee appointed under an instrument of dissolution of the building society.
15 10 (3) If, under subsection (2), a person mentioned in that sub­ section has applied to the Authority for permission to carry 25 on or to appoint some other person to carry on a licensee’s business, then, until the application has been determined, the Registrar may, in writing, authorise the applicant to carry on the licensee’s business, either personally or by an agent, for any period not exceeding 2 months.
30 (4) Despite subsection (3), an authority given under that subsec­ tion in any event ceases to have effect when the application for the Authority’s permission under subsection (2) is deter­ mined.

Compare: 1976 No 9 s 32 35 39 Part 3 cl 62 Real Estate Agents Bill Register of licensees Register of licensees The Registrar must establish, keep, and maintain, in accord­ ance with this Act, a register of licensees.
The Registrar must enter in the register— (a) (b) the name of every licensee; and the information about that licensee that is speciﬁed in section 65, to the extent that the information is rele­ vant to that person.

5 The Registrar must make any other entries in the register that 10 may be required, permitted, or directed to be entered by or under this Act or the regulations.
Compare: 1976 No 9 s 36 Purpose of register The purpose of the register is— to enable the public to— (a) (i) determine whether a person is a licensed agent, branch manager, or salesperson and, if so, the status and history of that person’s licence; and choose a suitable agent or salesperson from a list 20 of agents and salespersons; and know how to contact the agent or salesperson; and know which licensees have been disciplined within the last 3 years; and 25 (ii) (iii) (iv) (b) to facilitate the administrative, disciplinary, and other functions of the Authority, Registrar, and Disciplinary Tribunal under this Act.
Form of register The register may be kept— (a) as an electronic register (for example, on the Authority’s website); or (b) in any other manner that the Registrar thinks ﬁt.

The register must be operated at all times, unless the Registrar suspends the operation of the register, in whole or in part, in 35 accordance with subsection (3).
15 30 62 (1) (2) (3) 63 64 (1) (2) 40 Real Estate Agents Bill Part 3 cl 65 (3) The Registrar may refuse access to the register or otherwise suspend the operation of the register, in whole or in part, if the Registrar considers that it is not practicable to provide access to the register.
65 Matters to be contained in register (1) The register must contain all of the following information for each licensee whose name is entered in the register: (a) 5 (b) (c) (d) (e) (f) 10 the full name and business address or, in the case of a company, registered ofﬁce address: any aliases: the registration number issued by the Registrar: the address for communications under this Act: the name of any company, body corporate, or other agent that is associated with the licensee: any information about the status and history of the per­ 15 son’s licence, particularly— (i) (ii) the class of licence held by the person; and the date on which the person’s name was entered in the register; and the date of expiry of the person’s licence, or as the 20 case may be, the date of renewal of the licence; and the date on which the term of renewal of the li­ cence expires; and any action taken on a disciplinary matter in re­ 25 spect of the person in the last 3 years: (iii) (iv) (v) (g) any other information that the Registrar considers ne­ cessary for the purposes of the register.
(2) The register must also show— (a) (b) whether a licence was suspended in the last 3 years; and 30 if paragraph (a) applies,— (i) the ground under this Act for the suspension (for example, whether for non­payment of a fee or levy set by the Authority that was required from the licensee); and the period of the suspension; and any conditions for termination of the suspension.
35 (ii) (iii) 41 Part 3 cl 66 Real Estate Agents Bill 66 (1) (2) 67 Obligation to notify Registrar Each applicant for a licence, and each licensee, must give writ­ ten notice to the Registrar of any change in circumstances within 10 working days after the change.
In this section, change of circumstances means— (a) any change in the information recorded in the register; and any change in the real estate business for which the agent, branch manager, or salesperson works (if any); and any change that may be prescribed.
(b) (c) 5 10 Alterations to register The Registrar may at any time make any amendments to the register that are necessary to— (a) reﬂect any changes in the name of the licensee or the 15 information speciﬁed in section 65; or correct a mistake caused by any error or omission on the part of the Registrar or any person to whom the Registrar has delegated his or her functions, duties, or powers.
Compare: 1976 No 9 s 38 (b) 20 Search of register 68 (1) A person may search the register, on payment of the prescribed fee, for a purpose set out in section 63.

The Registrar must make the register available for public in­ 25 spection— (a) during the hours when the ofﬁce of the Registrar is open to the public for the transaction of business on a working day; and at any other time that the Registrar allows.
(b) The Registrar must supply copies of all or part of the regis­ ter on request and on payment of a reasonable charge for the production of the copy if the provision of those copies is con­ sistent with the register’s purposes.
30 (2) (3) 42 Real Estate Agents Bill Part 4 cl 72 69 When search constitutes interference with privacy of individual A person who searches the register for a purpose that is not a purpose set out in section 63 must be treated, for the purposes of Part 8 of the Privacy Act 1993, as if that person has breached 5 an information privacy principle under section 66(1)(a)(i) of that Act.
Part 4 Complaints and discipline Interpretation 10 70 Meaning of licensee in this Part In this Part, unless the context otherwise requires, licensee has the meaning given to it by section 4 and includes— (a) (b) a former licensee; and a person who is or has been an ofﬁcer of a company that 15 is, or has been, a licensee.
Unsatisfactory conduct and misconduct 71 Unsatisfactory conduct For the purposes of this Act, a licensee is guilty of unsatisfac­ tory conduct if the licensee carries out real estate agency work 20 that— (a) falls short of the standard that a reasonable member of the public is entitled to expect from a reasonably com­ petent licensee; or contravenes a provision of this Act or of any regulations 25 made under this Act; or is incompetent or negligent; or would reasonably be regarded by agents of good stand­ ing as being unacceptable.
(ab) (b) (c) 72 Misconduct 30 For the purposes of this Act, a licensee is guilty of misconduct if the licensee’s conduct— 43 Part 4 cl 73 Real Estate Agents Bill (a) (b) (c) (c) (d) would reasonably be regarded by licensees of good standing, or reasonable members of the public, as disgraceful; or constitutes seriously incompetent or seriously negligent real estate agency work; or consists of wilful or reckless contravention of this Act, other Acts that apply to the conduct of licensees (such as the Fair Trading Act 1986) or of regulations or rules made under the Act; or consists of a wilful or reckless contravention of— (i) (ii) this Act; or other Acts that apply to the conduct of licensees; or regulations or rules made under this Act; or (iii) constitutes an offence for which the licensee has been 15 convicted, being an offence (such as a crime involving dishonesty) that reﬂects adversely on the licensee’s ﬁt­ ness to be a licensee.
5 10 Complaints about licensees 73 (1) Any person may, in accordance with regulations made under 20 this Act, complain in writing to the Authority about the con­ duct of a licensee.

(2) When the Authority receives a complaint under this section, the Authority must refer the complaint to the Committee and notify the person complained about of the reference.
25 Complaints Assessment Committees 74 (1) Authority to establish and maintain Complaints Assessment Committee The Authority must appoint 3 members of the board to be members of the Complaints Assessment Committee.

(2) One of the members of the Committee must be a lawyer.

(3) The Authority must appoint 1 of the members of the Commit­ tee to preside at the meetings of the Committee.
If the member appointed to preside is, for any reason, absent from duty, the other members of the Committee must appoint 35 1 of their number to preside at the meeting.

30 (4) 44 (5) (6) 74 (1) (2) (3) (4) Real Estate Agents Bill Part 4 cl 74A The member appointed under subsection (3) or (4) may de­ termine whether, for the purposes of investigating, hearing, and determining any complaint under this Act, the Committee is to be constituted by 2 or 3 members.
The Authority must ensure that the membership of the Com­ 5 mittee is maintained at all times.

Authority to appoint Complaints Assessment Committees The Authority must appoint as many Complaints Assessment Committees as, in its opinion, are required to deal effectively with complaints and allegations about licensees.

Each Committee consists of 3 members.

(2) (3) One of the members of each Committee must be a member of (4) the Authority.
Two members of each Committee must be appointed from the panel maintained under section 74A.

10 15 (5) One of the members of each Committee (whether a member of the Authority or appointed from the panel) must be a lawyer of not less than 7 years’ legal experience.

The Authority must designate one of the members as the chair­ person of the Committee, and another member as the Deputy 20 Chairperson.
(6) 74A Panel (1) 25 The Authority must maintain a panel of up to 20 persons who are suitable to serve as members of Complaints Assessment Committees.

In considering the suitability of any person for inclusion on the panel, the Authority must have regard not only to the person’s personal attributes but also to the person’s knowledge and ex­ perience of matters likely to come before a Committee.
The knowledge and experience referred to in subsection (2) 30 includes, without limitation, experience and knowledge of— (a) (b) (c) The name of a person must be removed from the panel when 5 35 years have elapsed since the Authority approved the inclusion law: the real estate industry: consumer affairs.

45 Part 4 cl 74B Real Estate Agents Bill (5) of the person’s name on the panel or if the person resigns from the panel.
If subsection (4) applies, the name of the person must not be removed from the panel until any current matters that the person is considering as a member of a Committee have been 5 disposed of by the Committee.
74B Constitution of Committees for consideration of matters before it For the purposes of considering any matter before it, each Committee consists of— (a) the chairperson of the Committee or, if the chairperson is absent from duty for any reason, the deputy chairper­ son of the Committee; and 1 other member or, if the chairperson or deputy chair­ person so directs, 2 members.
(b) 10 15 75 Functions of Committees The functions of the each Committee are— (a) to inquire into and investigate complaints made under section 73: (ab) on its own initiative, to inquire into and investigate al­ 20 (b) (c) (d) (e) (f) (g) (h) 25 legations about any licensee: to promote, in appropriate cases, the resolution of com­ plaints by negotiation, conciliation, or mediation: to make ﬁnal determinations in relation to complaints, inquiries, or investigations: to lay, and prosecute, charges before the Disciplinary Tribunal: in appropriate cases, to refer the complaint to another agency: to inform the complainant and the person complained 30 about of its decision, reasons for the decision, and ap­ peal rights: to publish its decisions: to oversee the Authority’s role of providing information to the public about the complaints and discipline sys­ 35 tem.
46 Real Estate Agents Bill Part 4 cl 78 Procedure on receipt of complaint 76 (1) As soon as practicable after receiving a complaint concerning a licensee, the a Committee must consider the complaint and determine whether to proceed with it.
The Committee may— (a) (2) determine that the complaint alleges neither unsatisfac­ tory conduct nor misconduct and dismiss it accordingly: determine that the complaint discloses only a trivial or an inconsequential matter, and for this reason need not be pursued: determine that the complaint is frivolous or vexatious and not made in good faith, and for this reason need not be pursued: determine that the complaint should be referred to an­ other agency, and refer it accordingly: determine to proceed with the complaint.
(b) (c) (d) (e) 77 (1) Decision to take no action on complaint The A Committee may, in its discretion, decide to take no ac­ tion or, as the case may require, no further action on any com­ plaint if, in the opinion of the Committee,— (a) the length of time that has elapsed between the date when the subject matter of the complaint arose and the date when the complaint was made is such that an in­ vestigation of the complaint is no longer practicable or desirable; or the subject matter of the complaint is trivial inconse­ quential.
(b) (2) Despite anything in subsection (1), the Committee may, in its discretion, decide not to take any further action on a complaint if, in the course of the investigation of the complaint, it appears 30 to the Committee that, having regard to all the circumstances of the case, any further action is unnecessary or inappropriate.
Compare: 2006 No 1 s 138 78 (1) Notice of decision In any case where the a Committee decides to take no action on 35 a complaint, the Committee must promptly give written notice of that decision to— 47 Part 4 cl 79 Real Estate Agents Bill the complainant; and the person complained about.

(a) (b) The notice must— (a) (b) Compare: 2006 No 1 s 139 state the decision and the reasons for it; and describe the right of appeal conferred by section 108.
5 Inquiry by Committee If the a Committee decides to inquire into a complaint or into matters raised by allegations about a licensee, it must inquire into it the complaint or those matters as soon as practicable.

The Committee may authorise any person to assist it with its inquiry.
Compare: 2006 No 1 s 140 Notice to person complained about licensee The A Committee— (a) must send particulars to the person complained about licensee, and invite that person the licensee to make a written explanation in relation to the complaint (if any): (b) may require the person complained about licensee to 10 15 appear before it to make an explanation in relation to 20 the complaint inquiry: (c) may, by written notice served on the person complained about licensee, request that speciﬁed information be supplied to the Committee in writing.
Compare: 2006 No 1 s 141 25 Procedure of Committee The A Committee must exercise its powers and perform its duties and functions in a way that is consistent with the rules of natural justice.

The Committee may, subject to subsection (1), direct such 30 publication of its decisions under sections 77, 86, and 90 as it considers necessary or desirable in the public interest.
(2) 79 (1) (2) 80 81 (1) (2) 48 (3) 82 (1) (2) Real Estate Agents Bill Part 4 cl 83 The Committee may regulate its procedure in any manner that it thinks ﬁt as long as it is consistent with this Act and any regulations made under it.

Compare: 2006 No 1 s 142 Powers to call for information or documents If the conditions stated in subsection (2) are satisﬁed, the a Committee may, by notice in writing, require any person to produce to the Committee any papers, documents, records, or things.
The conditions referred to in subsection (1) are that— (a) 5 10 the members of the Committee believe, on reasonable grounds, that the exercise of the powers conferred by that subsection is necessary to enable the Committee to carry out its inquiry; and the person to whom a notice under that subsection is to 15 be given has failed to comply with a previous request to produce to the Committee, within a reasonable time, the papers, documents, records, or things required by the notice; and the members of the Committee believe, on reasonable 20 grounds, that— (i) it is not reasonably practicable to obtain the infor­ mation required by the Committee from another source; or for the purposes of the investigation, it is neces­ 25 sary to obtain the papers, documents, records, or things to verify or refute information obtained from another source.
(ii) (b) (c) Compare: 2003 No 48 s 77 83 Compliance with requirement to provide information or document 30 (1) A person who receives a notice under section 82 must, with­ out charge, comply with the requirement stated in the notice in the manner and within the period (being not less than 10 working days after the notice is given to the person) speciﬁed 35 in the notice.
49 Part 4 cl 84 Real Estate Agents Bill (2) Subsection (1) does not require a person to provide any in­ formation or produce any document that would be privileged in a court of law.

(3) No person is required to produce to the Committee any papers, records, documents, or things if compliance with that 5 requirement would be in breach of an obligation of secrecy or non­disclosure imposed on the person by an enactment (other than this Act, the Ofﬁcial Information Act 1982, or the Privacy Act 1993).
Compare: 2003 No 48 s 78 10 84 (1) (2) (3) Negotiation, conciliation, and mediation The A Committee may give, in relation to any complaint re­ ceived by it, a direction that, within a time or before a date ﬁxed by the Committee, the parties both— (a) explore the possibility of resolving, by negotiation, con­ 15 ciliation, or mediation,— (i) (ii) the complaint; or any issues relating to the complaint as the Com­ mittee speciﬁes; and report to the Committee.
(b) The Committee must not give a direction under subsection (1) if it considers that such a direction— (a) would not contribute constructively to resolving the complaint; or 20 (b) would not, in all the circumstances, be in the public 25 interest; or would undermine the urgent nature of the complaint.
(c) If the parties reach an agreed settlement in relation to the com­ plaint or any issue involved in the complaint, the Committee— (a) may record the terms of the settlement; and (b) may, by consent of the parties, declare all or some of the terms of the settlement to be all or part of a ﬁnal determination of the complaint by the Committee.
30 (4) No evidence is admissible in any court or before any person acting judicially or before the Committee or before the Discip­ 35 linary Tribunal of any information, statement, or admission disclosed or made to any person in the course of any nego­ tiation, conciliation, or mediation conducted, in accordance 50 Real Estate Agents Bill Part 4 cl 86 with a direction given under subsection (1), for the purpose of resolving a complaint or any issue involved in a complaint.
(5) Nothing in this section prevents the discovery or affects the admissibility of any evidence (being evidence which is other­ wise discoverable or admissible and which existed independ­ 5 ently of any negotiation, conciliation, or mediation conducted under a direction given under subsection (1) for the purpose of resolving a complaint or any issue involved in a complaint) merely because the evidence was presented in the course of the negotiation, conciliation, or mediation.
Compare: 2006 No 1 s 143 10 85 (1) (2) (3) (4) (5) 86 (1) (2) Evidence The A Committee may receive in evidence any statement, document, information, or matter that may in its opinion as­ sist it to deal effectively with the matters before it, whether or 15 not the statement, document, information, or matter would be admissible in a court of law.

The Committee may take evidence on oath, and for that pur­ pose, any member or ofﬁcer of the Committee may administer an oath.
The Committee may permit a person appearing as a witness before it to give evidence by tendering a written statement and, if the Committee thinks ﬁt, verifying that statement by oath.

The Evidence Act 2006 applies (subject to subsections (1) to (3)) to the Committee in the same manner as if it were a 25 court within the meaning of that Act.

This section is subject to sections 81(1) and 84(4).
Compare: 2006 No 1 s 151 20 Power of Committee to determine complaint or allegation The A Committee may make 1 or more of the determinations 30 described in subsection (2) after both inquiring into a com­ plaint or allegation and conducting a hearing with regard to that complaint or allegation.
The determinations that the Committee may make are as fol­ lows: 35 51 Part 4 cl 87 Real Estate Agents Bill (a) (b) (c) a determination that the complaint or allegation be con­ sidered by the Disciplinary Tribunal: a determination that there has been the licensee has en­ gaged in unsatisfactory conduct on the part of the li­ censee: a determination that the Committee take no further ac­ tion with regard to the complaint or matter allegation or any issue involved in the complaint or allegation.
5 (3) Nothing in this section limits the power of the Committee to make, at any time, a decision under section 77 with regard to 10 a complaint.

Compare: 2006 No 1 s 152(1)–(3) Hearings on papers 87 (1) A hearing conducted under section 86(1) by the a Committee is to be a hearing on the papers, unless the Committee other­ 15 wise directs.

If the Committee conducts the hearing on the papers, the Com­ mittee must make its determination on the basis of the written material before it.
Consideration of the written material may be undertaken in 20 whatever manner the Committee thinks ﬁt.
Compare: 2006 No 1 s 153(1), (7), (8) Reference of complaint to Disciplinary Tribunal If the a Committee makes a determination that the complaint or allegation be determined by the Disciplinary Tribunal, the 25 Committee must— (a) frame an appropriate charge and lay it before the Dis­ ciplinary Tribunal by submitting it in writing to the Tri­ bunal; and give written notice of that determination and a copy of 30 the charge to the person to whom the charge relates and to the complainant.
(b) Compare: 2006 No 1 s 154 (2) (3) 88 52 Real Estate Agents Bill Part 4 cl 90 89 90 (1) Application for suspension of licence If, under section 88(a), the a Committee lays before the Dis­ ciplinary Tribunal a charge against a licensee, the Committee may apply to the Tribunal for an order that, pending the de­ termination of the charge, the licence of the licensee be sus­ 5 pended.
Compare: 2006 No 1 s 155 Power of Committee to make orders If the a Committee makes a determination under section 86(2)(b), the Committee may— do 1 or more of the follow­ 10 ing: (a) make an order censuring or reprimanding the person (b) (c) (d) (e) (f) (g) (h) complained about licensee: order that all or some of the terms of an agreed settle­ ment between the person complained about licensee and 15 the complainant are to have effect, by consent, as all or part of a ﬁnal determination of the complaint: order that the person complained about licensee apolo­ gise to the complainant: order undergo training or education: order the person complained about licensee to reduce, cancel, or refund fees charged for work where that work is the subject of the complaint: order the person complained about licensee— (i) to rectify, at his or her or its own expense, any error or omission; or the person complained about licensee 20 that 25 (ii) where it is not practicable to rectify the error or omission, to take steps to provide, at his or her or its own expense, relief, in whole or in part, from 30 the consequences of the error or omission: order the person complained about licensee to pay to the Authority a ﬁne not exceeding $10,000 in the case of an individual or $20,000 in the case of a company: order the person complained about licensee, or the agent 35 for whom the person complained about works, to make his or her business available for inspection or take ad­ 53 Part 4 cl 91 Real Estate Agents Bill (i) vice in relation to management from persons speciﬁed in the order: order the person complained about licensee to pay the complainant any costs or expenses incurred in respect of the inquiry, investigation, or hearing by the Committee.
5 (2) An order under this section may be made on and subject to any terms and conditions that the Committee thinks ﬁt.

Compare: 2006 No 1 s 156(1) Notice of determination 91 (1) When the a Committee makes a determination under sec­ 10 tion 86, the Committee must promptly give written notice of that determination to the complainant and to the person com­ plained about licensee.
The notice must— (a) (b) state the determination and the reasons for it; and specify any orders made under section 90 and be ac­ companied by copies of those orders; and describe the right of appeal conferred by section 108.
(2) 15 (c) Compare: 2006 No 1 s 158 20 92 Members of Committee not personally liable (1) A person who is a member of the a Committee or any person authorised by the a Committee to assist it with any investiga­ tion or proceeding is not under any civil or criminal liability in respect of— (a) (b) any act done or omitted to be done in the course of 25 performing or exercising any of that person’s functions, duties, or powers under this Act or done or omitted to be done to assist in that performance or exercise; or any words spoken or written at, or for the purpose of, the hearing of any proceedings under this Act; or (c) anything contained in any notice given under this Act.
Subsection (1) does not apply if the person acts in bad faith.

Compare: 2006 No 1 s 185 30 (2) 54 93 94 95 96 Real Estate Agents Bill Part 4 cl 97 Protection and privileges of witnesses Every person has the same privileges and immunities as a wit­ ness has in a court of law in relation to— (a) (b) the giving of information to the a Committee; and the giving of evidence to, or the answering of questions 5 put by, the Committee; and the production of papers, documents, records, or things to the Committee.
Compare: 2006 No 1 s186(1) (c) Privileges and immunities of counsel Every counsel appearing before the a Committee has the same privileges and immunities as counsel in a court of law.

Compare: 2006 No 1 s 187 10 Enforcement of orders An order for the payment of money made by the a Committee 15 may be enforced in all respects as if it were an order of the District Court on the ﬁling of a sealed copy in that court.
Non­payment of ﬁnes or costs If money payable by a person under an order by the a Com­ mittee or by the Disciplinary Tribunal remains unpaid for 60 20 days or longer after the date of the order, the Committee may suspend the person’s licence until the person pays the money and, if he or she does not do so within 12 months, cancel his or her licence and direct the Registrar to remove the person’s name from the register.
25 Real Estate Agents Disciplinary Tribunal 97 (1) (2) Real Estate Agents Disciplinary Tribunal established This section establishes a body to be known as the Real Estate Agents Disciplinary Tribunal.

The Tribunal consists of— (a) a person to act as chair of the Tribunal, who must be a barrister or solicitor with not less than 7 years’ legal experience; and 30 55 Part 4 cl 98 Real Estate Agents Bill (3) (4) 98 99 (b) up to 4 other members, at least one of whom must be a licensee.
The members of the Tribunal are appointed by the Minister.

The Minister must designate one of the members referred to in subsection (2)(b) as the deputy chairperson of the Tribunal.

5 Constitution of Tribunal for hearings For the purposes of each hearing, the Tribunal consists of— (a) the chairperson of the Tribunal or, if the chairperson is absent from duty for any reason, a member designated by the Minister to be the deputy chairperson; and 2 other members.
(b) 10 Functions of Tribunal The functions of the Tribunal are— (a) to hear and determine any application made by the a Complaints Assessment Committee for the suspension 15 of the licence of a licensee pending the determination of a charge that the Committee has laid against the li­ censee: to hear and determine any charge against a licensee brought by the Committee: to hear any appeal under section 108 against a deter­ mination by the Committee (including a determination to take no action): to conduct any review, under section 109, of a decision of the Registrar.
20 25 (b) (c) (d) 100 Services for Tribunal The Ministry of Justice must furnish such secretarial, record­ ing, and clerical services as may be necessary to enable the Tribunal to discharge its functions.

101 Further provisions in relation to Tribunal and its 30 proceedings The provisions of Schedule 1 have effect in relation to the Tribunal and its proceedings.

56 Real Estate Agents Bill Part 4 cl 105 102 Proceeding before Tribunal (1) (2) The Tribunal may regulate its procedures as it thinks ﬁt.
Subsection (1) is subject to the rules of natural justice and to this Act and any regulations made under this Act.

103 Representation before Disciplinary Tribunal (1) Every person whose rights may be affected by a proceeding of the Disciplinary Tribunal (other than a review under section 109) is entitled to appear and be heard at the hearing of that proceeding and to be represented by counsel or otherwise.
(2) A charge made by the Committee against a licensee is, at the 10 hearing, to be prosecuted by the Committee, which, for that purpose, may be represented by counsel or otherwise.

5 104 Hearings to be in public (1) (2) (3) (4) Every hearing of the Disciplinary Tribunal must be held in public.

Subsection (1)— (a) (b) does not apply to reviews under section 109; and is subject to subsections (3) and (4) and to section 105.
15 If the Disciplinary Tribunal is of the opinion that it is proper 20 to do so, having regard to the interest of any person (including (without limitation) the privacy of the complainant (if any)) and to the public interest, it may hold a hearing or part of a hearing in private.

The Disciplinary Tribunal may, in any case, deliberate in pri­ 25 vate on its decision or on any question arising in the course of a hearing.
Compare: 2006 No 1 s 238 105 Restrictions on publication (1) If the Disciplinary Tribunal is of the opinion that it is proper 30 to do so, having regard to the interest of any person (including (without limitation) the privacy of the complainant (if any)) and to the public interest, it may make 1 or more of the fol­ lowing orders: 57 Part 4 cl 106 Real Estate Agents Bill (a) (b) (c) an order prohibiting the publication of any report or ac­ count of any part of any proceedings before it, whether held in public or in private: an order prohibiting the publication of the whole or any part of any books, papers, or documents produced at any 5 hearing: an order prohibiting the publication of the name or any particulars of the affairs of the person charged or any other person.
(2) Unless it is reversed or modiﬁed in respect of its currency by 10 the High Court on appeal under section 113, an order made under subsection (1) continues in force as speciﬁed in the order, or, if no time is speciﬁed, until the Disciplinary Tri­ bunal, in its discretion, revokes it on the application of any party to the proceedings in which the order was made or of 15 any other person.

Subsection (1)(c) does not apply to any communications be­ tween the Disciplinary Tribunal and the Authority.
Compare: 2006 No 1 s 240 (3) 106 Evidence (1) 20 Subject to section 102, the Disciplinary Tribunal may receive as evidence any statement, document, information, or matter that may, in its opinion, assist it to deal effectively with the matters before it, whether or not that statement, document, information, or matter would be admissible in a court of law.

The Disciplinary Tribunal may take evidence on oath and, for that purpose, any member of the Disciplinary Tribunal may administer an oath.
The Disciplinary Tribunal may permit a person appearing as a witness before it to give evidence by tendering a written state­ 30 ment and verifying that statement by oath.

Subject to subsections (1) to (3), the Evidence Act 2006 applies to the Disciplinary Tribunal in the same manner as if the Disciplinary Tribunal were a court within the meaning of that Act.
35 25 (2) (3) (4) 58 Real Estate Agents Bill Part 4 cl 107 (5) A hearing before the Disciplinary Tribunal is a judicial pro­ ceeding within the meaning of section 108 of the Crimes Act 1961 (which relates to perjury).
Compare: 2006 No 1 s 239 107 Determination of charges and orders that may be made 5 (1) (2) if charge proved If the Disciplinary Tribunal, after hearing any charge against a person who is a licensee, is satisﬁed that it has been proved on the balance of probabilities that the person has been guilty of misconduct, it may, if it thinks ﬁt, make 1 or more of the 10 orders speciﬁed in subsection (2).
The orders are as follows: (a) (b) (c) (d) (e) (f) 1 or more of the orders that can be made by the a Com­ mittee under section 90: an order cancelling the licence of the licensee and, in 15 the case of a licensee that is a company, also cancelling the licence of any ofﬁcer of the company: an order suspending the licence of the licensee for a period not exceeding 24 months and, in the case of a licensee that is a company, also suspending the licence 20 of any ofﬁcer of the company for a period not exceeding 24 months: an order that a licensee not perform any supervisory functions until authorised by the Board to do so: an order, in the case of a licensee who is an employee or 25 independent contractor, or former employee or former independent contractor, that any current employment or engagement of that person by a licensee be terminated and that no agent employ or engage that person in con­ nection with real estate agency work: an order that a licensee who is an individual pay a ﬁne not exceeding $15,000 and order a licensee that is a company pay a ﬁne not exceeding $30,000: 30 (g) where it appears to the Tribunal that any person has suf­ fered loss by reason of any act or omission of a licensee, 35 an order that the licensee pay to that person a sum by way of compensation as is speciﬁed in the order, being 59 Part 4 cl 108 Real Estate Agents Bill (3) (4) a sum not exceeding the amount that is from time to time prescribed in the regulations $100,000.
The making of an order under this section for the payment of compensation to any person does not affect the right (if any) of that person to recover damages in respect of the same loss, 5 but any sum ordered to be paid under this section, and the effect of any order made under this section for the reduction, cancellation, or refund of fees, must be taken into account in assessing any such damages.
If the Disciplinary Tribunal, after hearing any charge against 10 a licensee, is satisﬁed that the licensee, although not guilty of misconduct, has engaged in unsatisfactory conduct, the Tri­ bunal may do either of the following: (a) make any of the orders that a Complaints Assessment (b) Committee may make under section 90: remit the matter to the Committee that laid the charge against the person.
(5) Where a matter is remitted to a Committee under subsection (4)(b), the Committee is taken to have made a determination under section 86(2)(b).

(2) 108 Appeal to Tribunal against determination by Committee (1) A person affected by a determination of the a Committee may appeal to the Tribunal against a determination of the Commit­ tee within 20 working days after the date of the notice given under section 91.
The appeal is by way of written notice to the Tribunal of the complainant’s appellant’s intention to appeal, accompanied by— (a) a copy of the notice given to the person under section 91; and any other information that the complainant appellant wishes the Tribunal to consider in relation to the appeal.

(b) The appeal is by way of rehearing.

(3) (4) After considering the appeal, the Tribunal may conﬁrm, re­ verse, or modify the determination of the Committee.
60 15 20 25 30 35 Real Estate Agents Bill Part 4 cl 111 (5) If the Tribunal reverses or modiﬁes a determination of the Committee, it may exercise any of the powers that the Com­ mittee could have exercised.

109 Application to Tribunal to review determination by Registrar 5 (2) (1) An applicant may apply to the Tribunal against a determination of the Registrar that adversely affects the applicant within 20 working days after the date the applicant is notiﬁed of the de­ termination.
The application must be made by way of written notice to the 10 Tribunal of the applicant’s intention to apply, accompanied by— (a) (b) a copy of the notiﬁcation; and any other information that the applicant wishes the Tri­ bunal to consider in relation to the appeal.

15 (3) The review must be conducted on the papers unless the appli­ cant requests to be heard in his or her application.

(4) After conducting the review, the Tribunal may conﬁrm, re­ (5) verse, or modify the decision of the Registrar.
If the Tribunal reverses or modiﬁes a determination of the 20 Registrar, it may exercise any of the powers that the Regis­ trar could have exercised.

110 Notiﬁcation by Tribunal When the Tribunal determines a matter in a proceeding, the Tribunal must notify every person involved in the proceeding, 25 the Authority, and the Registrar of the determination in writ­ ing, setting out the reasons for the decision and the right of appeal to the High Court.
111 Enforcement of order Any order made by the Tribunal under section 107 for the 30 payment of any money may be enforced in all respects as if it were an order of the District Court on the ﬁling of a sealed copy in that court.
61 Part 4 cl 112 Real Estate Agents Bill Suspension of licence pending outcome of hearing The Tribunal may suspend the licence of a licensee where— (a) (b) a licensee has been charged under section 88; and the Tribunal considers that it is necessary or desirable to suspend the licence having regard to the interests of 5 the public.
The process for suspending a licence under this section is as follows: (a) 10 (ii) the Tribunal must give a licensee written notice of its intention to suspend the licence; and the notice must— (i) contain the Tribunal’s reasons for the intended suspension; and state that the licensee has 10 working days within which to make written representations to the Tri­ 15 bunal as to why the licence should not be sus­ pended; and state the proposed period, or otherwise describe the proposed duration, of the suspension; and if any written representations are made by the licensee 20 within the period referred to in paragraph (b)(ii), the Tribunal must take those representations into account in deciding whether to suspend the licence and the period or duration of any suspension; and the Tribunal must then decide whether to suspend the 25 licence, and notify the licensee accordingly, as soon as practicable.
(iii) (b) (c) (d) If the Tribunal decides to suspend the licence, the Tribunal must give the licensee and the Registrar written notice of its decision and— (a) include in the notice the grounds for the decision, the date on which the suspension takes effect, and the period or duration of the suspension; and specify in the notice the right of the licensee to appeal to the High Court under section 113.
(b) 30 35 112 (1) (2) (3) 62 Real Estate Agents Bill Part 4 cl 117 Appeals against decisions of Tribunal 113 Right of appeal A person who is affected by a decision of the Tribunal may appeal to the High Court against the decision.
114 High Court may make interim order (1) At any time before the ﬁnal determination of an appeal, the High Court may make an interim order allowing the appellant an appellant who is a licensee to carry out real estate agency work until the close of the day on which the High Court ﬁnally determines the appeal.

5 10 (2) An interim order may be subject to any conditions that the High Court thinks ﬁt.
115 Duties of Registrar if interim order made (1) If an interim order is made allowing the appellant a licensee to engage in agency work,— (a) that person is to be treated for the purposes of this Act as if he or she were licensed; and the Registrar must, as appropriate, enter, retain, or re­ store the person’s name on the register.
(b) 15 (2) To enable the Registrar to fulﬁl the duties imposed by this 20 section, the Registrar of the court in which the interim order is made must send a copy of the order to the Registrar as soon as practicable.

Compare: 2007 No 15 s 83 116 Determination of appeal (1) (2) The High Court’s decision in the determination of an appeal is ﬁnal.

This section is subject to the right of a party to appeal to the Court of Appeal on a question of law under section 117.
Compare: 2007 No 15 s 84 25 30 117 Appeal to Court of Appeal on question of law (1) If dissatisﬁed with a decision of the High Court on the ground that it is erroneous in law, a party to an appeal under this Part may appeal to the Court of Appeal on a question of law only.

63 Part 5 cl 117A Real Estate Agents Bill (2) (3) The appeal must be heard and determined in accordance with the rules of court.

The decision of the Court of Appeal or any appeal under this section is ﬁnal.
Compare: 2007 No 15 s 85 Part 5 Duties relating to real estate agency work Business to be identiﬁed 117A Agent to display required name information (1) In this section,— business, in relation to an agent, means the agent’s business as a real estate agent required name information, in relation to an agent, means— the name of the agent and the fact that the agent is li­ (a) censed under this Act; and if the agent’s business as a real estate agent is not carried on in the agent’s name, the name or style under which that business is carried on.
(b) (2) Every agent must ensure that the required name information is displayed in a prominent place— (a) 5 10 15 20 (b) (c) (d) at each ofﬁce or shop maintained by the agent for the purposes of the business; and on every website maintained by the agent for the pur­ poses of the business; and on all notices, advertisements, and other material pub­ 25 lished by or on behalf of the agent in the course of the business; and on all letters, accounts, contractual documents, agree­ ments, and other documents sent or handed out, entered into, or published by or on behalf of the agent in the 30 course of the business.
(3) Any required name information displayed at an ofﬁce or shop must be capable of being easily read from outside the ofﬁce or shop.
Compare: 1976 No 9 s 53 35 64 Real Estate Agents Bill Part 5 cl 119 Receipt of money and audit of accounts 118 Duty of agent with respect to money received in course of business (1) All money received by an agent in respect of any transaction in his or her capacity as an agent must be paid to the person 5 lawfully entitled to that money or in accordance with that per­ son’s directions.
(2) Despite subsection (1), if an agent is in doubt on reasonable grounds as to the person who is lawfully entitled to the money, he or she must take all reasonable steps to ascertain as soon 10 as practicable the person who is entitled and may retain the money in his or her trust account until that person has been ascertained.
Pending the payment of any such money, the money must be paid by the agent into a general or separate trust account at any 15 bank carrying on business in New Zealand under the authority of any Act and may not be drawn upon except for the purpose of paying it to the person entitled or as that person may in writing direct.
(3) (4) No money to which this section applies is available for pay­ 20 ment of the agent’s debts, nor may it be attached or taken in execution under the order or process of any court at the in­ stance of any of the agent’s creditors.

(5) Nothing in this section takes away or affects any just lien or claim that an agent who holds money to which this section 25 applies has against the money.
Compare: 1976 No 9 s 56 119 Money to be held by agent for 10 working days (1) When an agent receives any money in respect of any transac­ tion in his or her capacity as an agent, he or she must not pay 30 that money to any person for a period of 10 working days after the date on which he or she received it.
(2) Despite subsection (1), a court order or an authority signed by all the parties to the transaction may require the agent to pay the money before the expiry of the period speciﬁed in that 35 subsection.
65 Part 5 cl 120 Real Estate Agents Bill (3) If at any time while holding any money on behalf of any party to the transaction, the agent receives written notice of any requisitions or objections in respect of the title to any land af­ fected by the transaction, the agent must not at any time pay that money to any person except in accordance with a court 5 order or an authority signed by all the parties to the transac­ tion.
Compare: 1976 No 9 s 57 120 Agent to furnish account to client (1) As soon as an agent is asked by his or her client to do so, and 10 in any case not later than 28 days after the agent receives any money in respect of the transaction in his or her capacity as an agent, the agent must render to the person lawfully entitled to the money an account in writing, setting out particulars of all such money, and its application.
If an agent is in doubt on reasonable grounds as to the person who is lawfully entitled to any money, the agent must take all reasonable steps to ascertain as soon as practicable the person who is entitled and is not required to render an account under this section until the person lawfully entitled has been ascer­ 20 tained.
Compare: 1976 No 9 s 58 (2) 15 121 Agents’ trust accounts to be audited (1) Every general or particular trust account of an agent must be audited at the times and in the manner prescribed by regula­ 25 tions made under this Act.

(2) All information obtained by an auditor in the course of the audit of any trust account under this Act must be treated as conﬁdential.

Subsection (2) is subject to any rights of disclosure that may 30 be prescribed for the purposes of the audit.
Compare: 1976 No 9 s 60 (3) 122 Administration of trust account in certain cases (1) This section applies in any case where the Authority is satisﬁed that any money entrusted to an agent is held by a banker in any 35 66 Real Estate Agents Bill Part 5 cl 123 trust account of the agent and the Authority is satisﬁed that the agent— (a) 5 is, owing to physical or mental disability, unable to ad­ minister his or her trust account properly; or has died; or has been adjudicated a bankrupt or has been admitted to the no asset procedure under the Insolvency Act 2006, or has been placed in receivership or liquidation under the Companies Act 1993; or has had his or her licence revoked; or has been suspended from carrying on the business of an agent; or has ceased to carry on the business of an agent and has neglected to wind up his or her trust account after rea­ sonable notice has been given to him or her by the Au­ 15 thority requiring him or her to do so; or has not administered the trust account in accordance with the Act and regulations; or operates a trust account that has been administered reck­ lessly.
20 10 (b) (c) (d) (e) (f) (g) (h) (2) In any case to which this section applies the Authority may, if it is satisﬁed that it is appropriate, make an order appointing a suitable person to administer the trust account for a period speciﬁed by the Authority.

(3) A copy of every order made by the Authority under this sec­ 25 tion must be served on the banker, and on receipt of that copy the banker must allow the person appointed by the order to ad­ minister the trust account.
Compare: 1976 No 9 s 33 123 Appointment of interim administrator in certain cases (1) The Authority may make an order appointing an appropriate person as an interim administrator of an agent’s trust account if the Authority reasonably suspects that— (a) (b) any money entrusted to the agent may be at risk; and 1 or more of the grounds speciﬁed in section 122(1) 35 apply to that agent.
30 (2) The function of the interim administrator is to preserve the assets until the termination of the order under subsection (1).

67 Part 5 cl 124 Real Estate Agents Bill (3) An order under subsection (1) is terminated when— (a) the Authority notiﬁes the agent concerned that the Au­ thority no longer considers that money entrusted to the agent is at risk; or an order is made under section 122(2).

(b) Section 122(3) applies to an order made under this section.
5 (4) Agency agreements 124 No entitlement to commission or expenses without agency agreement (1) An agent is not entitled to any commission or expenses from 10 a client for or in connection with any real estate agency work carried out by the agent for the client unless— (a) the work is performed under a written agency agreement signed by or on behalf of— the client; and (i) (ii) the agent; and the agency agreement complies with any applicable requirements of any regulations made under section 155; and a copy of the agency agreement signed by or on behalf 20 of the agent was given by or on behalf of the agent to the client within 48 hours after the agreement was signed by or on behalf of the person client.
15 (b) (c) (2) A court before which proceedings are taken by an agent for the recovery of any commission or expenses from a person 25 client may order that the commission or expenses concerned are wholly or partly recoverable despite a failure by the agent to give a copy of the relevant agency agreement to the person client within 48 hours after it was signed by or on behalf of the person client.
30 (3) A court may not make an order described in subsection (2) unless satisﬁed that— (a) the failure to give a copy of the agreement within the required time was occasioned by inadvertence or other cause beyond the control of the agent; and 35 68 Real Estate Agents Bill Part 5 cl 126 (b) the commission or expenses that will be recoverable if the order is made are fair and reasonable in all the circumstances; and failure to make the order would be unjust.
(c) This section overrides the Illegal Contracts Act 1970.
Compare: Property, Stock and Business Agents Act 2002 s 55(1), (4), (5) (NSW) 5 (4) 125 Approved guide to be provided before agency agreement for residential property signed (1) An agent must not enter into an agency agreement with a per­ 10 son for the sale of residential property unless the agent or a licensee on the agent’s behalf— (a) has provided the person with a copy of the approved guide before the agreement is signed by or on behalf of the person; and has received a signed acknowledgment from the person that the person has been given the approved guide.
(b) (2) In this section— approved guide means a guide that— (a) (b) is about the sale of residential property: has been approved by the Authority for the purposes of this section residential property does not include any property that— (a) has been developed with other properties in a continu­ ous area; and is proposed to be sold or otherwise disposed of by a vendor who also proposes to sell or otherwise dispose of, or who has sold or otherwise disposed of, some or all of those other properties.
(b) (3) A contravention of this section does not affect the validity of 30 the agency agreement.
Compare: Property, Stock and Business Agents Act 2002 s 56 (NSW) 126 Agency agreement must disclose rebates, discounts, and commissions (1) An agent is not entitled to any expenses from a client for or in 35 connection with any real estate agency work carried out by the agent for the client in connection with a transaction unless the 69 15 20 25 Part 5 cl 127 Real Estate Agents Bill agency agreement under which the agent performs that work contains a statement that— (a) identiﬁes the source of all rebates, discounts, or com­ missions that the agent will or may is eligible to receive in respect of those expenses; and speciﬁes the estimated amount of those rebates, dis­ counts, or commissions (to the extent that the amount can reasonably be estimated).
(b) 5 (2) This section does not limit the liability of any person under the Secret Commissions Act 1910.
Compare: Property, Stock and Business Agents Act 2002 s 57(1) (NSW) 10 127 Regulations may make provisions in respect of agency agreements Regulations under section 155 may provide for any 1 or more of the following: (a) (b) the form of agency agreements: the terms, conditions, and other provisions that an agency agreement must or must not contain: 1 or more standard forms of agency agreement: the manner and form in which disclosure is to be made 20 under section 126.
(c) (d) 15 Compare: Property, Stock and Business Agents Act 2002 s 55(2) (NSW) 128 Client may cancel sole agency agreement by 5 pm next working day (1) A client who is party to a sole agency agreement with an agent 25 may, by 5 pm on the ﬁrst working day after the day on which a copy of the agreement is given to the client under section 124(1)(c), cancel the agreement by written notice to the agent.

(2) A notice under subsection (1) may be served by fax or email.
(3) Subsection (1) has effect despite any provision to the con­ 30 trary in any agreement.

Even though a sole agency agreement has been cancelled, an agent may rely on that agreement if, before that cancella­ tion,— (a) the agent carries out any agency work in accordance 35 with the agreement; and (4) 70 Real Estate Agents Bill Part 5 cl 130 (b) that agency work enables the conclusion of a contract that effects a transaction to which the agreement relates.
129 Parties may cancel sole agency agreements in respect of residential property 90 days after agreement is signed (1) Any party to a sole agency agreement that relates to residential 5 property and is for a term longer than 90 days may, at any time after the expiry of the period of 90 days after the agreement is signed, cancel the agreement by written notice to the other party or parties.
If the parties to a sole agency agreement to which subsection 10 (1) relates agree in writing to renew the sole agency agree­ ment, the signing of the renewal agreement is, for the purposes of that subsection, taken to be the signing of a new sole agency agreement.

For the purposes of subsection (1), a sole agency agreement 15 is signed when it is signed by or on behalf of the client or, if there is more than 1 client, when the agreement is signed by the last client.
(1A) (2) (3) A notice under subsection (1) may be served by fax or email.

(4) This section has effect despite any provision to the contrary in 20 any agreement.

In this section, residential property does not include any property that— (a) (4A) (b) has been developed with other properties in a continu­ ous area; and is proposed to be sold or otherwise disposed of by a vendor who also proposes to sell or otherwise dispose of, or who has sold or otherwise disposed of, some or all of those other properties.
Disclosure of information as to transaction and conﬂicts of interest 130 Licensee to give copy of contract contractual document As soon as practicable after a person signs a contractual docu­ ment speciﬁed in subsection (2) and gives that document to a licensee carrying out real estate agency work in connection 35 71 25 30 Part 5 cl 131 Real Estate Agents Bill (2) with the document, the licensee must give the person an ac­ curate copy of the document.
The documents are as follows: an offer to purchase or lease any land: (a) an agreement for the sale and purchase of any land: (b) an agreement to lease: (c) (d) a lease.
Compare: 1976 No 9 s 65 131 Approved guide to be provided when offer or sale and purchase agreement contractual document provided (1) An agent who carries out real estate agency work in respect of the sale of residential property must ensure that subsection (2) is complied with before the agent, or a licensee on the agent’s behalf, gives a person— (a) (b) a copy of an offer to buy or sell the property: a copy of a proposed agreement for the sale and pur­ chase of the property.
(1) An agent must ensure that subsection (2) is complied with before a person signs a contractual document if the contractual document— (a) relates to the proposed sale of a residential property in respect of which the agent is carrying out real estate work; and (b) was provided to the person by the agent or by a licensee on behalf of the agent.
(2) (3) The agent or a licensee on the agent’s behalf must have— (a) have provided the person with a copy of the approved guide; and received a signed acknowledgment from the person that the client has been given the approved guide.

(b) In this section— approved guide means a guide that— (a) (b) is about the sale of residential property: has been approved by the Authority for the purposes of this section.

(4) A contravention of this section does not affect the validity of any contract.
72 Real Estate Agents Bill Part 5 cl 133 132 Contracts for acquisition by licensee or related person may be cancelled (1) No licensee may, without the consent of the client for whom he or she carries out real estate agency work in respect of a transaction, directly or indirectly, whether by himself or her­ 5 self or through any partner, sub­agent, or nominee, acquire the land or business to which the transaction relates or any legal or beneﬁcial interest in that land or business.
(2) No licensee may, without the consent of the client, carry out or continue to carry out any agency work in respect of a transac­ 10 tion if the licensee knows or should know that the transaction will, or is likely to, result in a person related to the licensee acquiring the land or business to which the transaction relates or any legal or beneﬁcial interest in that land or business.
The client’s consent is effective only if— (a) (b) given in the prescribed form; and the client is provided with a valuation in accordance with section 133.

15 The client may cancel any contract— (a) made in contravention of subsection (1); or (b) brought about by agency work carried out in contraven­ tion of subsection (2).

20 (3) (4) (6) (5) No commission is payable in respect of any contract of the kind described in subsection (4), regardless of whether the client cancels the contract.
The client may recover any commission paid in respect of any contract of the kind described in subsection (4) as a debt.

For the purposes of this section, a person who is the client of an agent in respect of a transaction is also the client of any branch manager or salesperson whose work enables the agent 30 to carry out real estate agency work for that client.

This section and section 133 have effect despite any provi­ sion to the contrary in any agreement.
(7) (8) 25 133 Client to be provided with valuation (1) For the purposes of section 132(3), the licensee must give the 35 client a valuation made at the licensee’s expense, by an inde­ pendent registered valuer of the land or business in question.

73 Part 5 cl 134 Real Estate Agents Bill (1A) The valuation must have been made by— an independent registered valuer; or in the case of a business, by an independent chartered accountant.
(a) (b) (2) (3) The licensee must give the client the valuation either— (a) before seeking the consent of the client; or (b) with the agreement of the client, within 14 days after 5 obtaining that consent.

Every consent given under section 132 without the valuation being supplied to the client in accordance with subsection (2) 10 is ineffective.
(4) Any contract to which the client is a party and to which the consent relates is voidable at the option of the client if— (a) the client gives his or her consent in accordance with subsection (2)(b); and the valuation, when supplied, is greater than the valu­ ation speciﬁed in the prescribed form of consent as the provisional valuation.
(b) 15 Compare: 1976 No 9 s 64 134 Disclosure of other beneﬁts that licensee stands to gain 20 from transaction (1) A licensee who carries out real estate agency work in respect of a transaction must disclose in writing to every prospective party to the transaction whether or not the licensee, or any person related to the licensee, may beneﬁt ﬁnancially from the 25 transaction.

(1A) Subsection (1) does not apply to any matter disclosed under section 126 or 132.
The licensee must make the disclosure required by subsec­ tion (1) before or at the time that the licensee provides the 30 prospective party with any of the following contractual docu­ ments that relate to the transaction.

(a) (b) (c) a copy of an offer: a copy of a proposed sale and purchase agreement: a copy of a proposed agreement to lease or a copy of a 35 lease.
(2) 74 Real Estate Agents Bill Part 5 cl 136 (3) For the purposes of this section, an agent does not beneﬁt ﬁ­ nancially from a transaction merely because of any commis­ sion payable to the agent under an agency agreement in respect of the transaction.

(4) A contract entered into in contravention of this section may 5 not be cancelled merely because of that contravention.
135 Meaning of licensee and person related to licensee in (1) (2) 15 sections 132 to 134 In sections 132 to 134, licensee includes, in the case of an agent that is a company, every ofﬁcer and shareholder of the 10 company.
For the purposes of sections 132 to 134, a person is related to a licensee if the person is— (a) (b) (c) a partner of the licensee under a partnership agreement: an employee of the licensee: a branch manager or salesperson engaged by the li­ censee: the licensee’s spouse or civil union partner: the licensee’s de facto partner: a child, grandchild, brother, sister, nephew, or niece of 20 the licensee or of any person referred to in paragraphs (d) or (e): any other child who is being, or is to be, cared for on a continuous basis by the licensee or any person referred to in paragraph (d) or (e): any parent of the licensee or of any person referred to in paragraph (d) or (e): an entity that has an interest in the licensee or an entity (not being an entity listed on the New Zealand Stock Exchange) in which the licensee has an interest.
(d) (e) (f) (g) (h) (i) 25 30 Requirements where land sold by auction 136 Application of sections 137 to 141 Sections 137 to 141 apply to any auction for the sale of land or any interest in land, whether or not the person conducting the auction is a licensee or a registered licensed auctioneer 35 under the Auctioneers Act 1928.
75 Part 5 cl 137 Real Estate Agents Bill 137 Bidders Record (1) Before an auction is held any bids are taken at an auction, a record (the Bidders Record) must be made of the persons who will be entitled to bid at the auction.

The Bidders Record must show, in respect of each bidder,— 5 (a) (b) the relevant details of the person; and the identifying number allocated to the person for the purpose of identifying the person at the auction; and any other information required by regulations made under this Act.
(c) For the purposes of subsection (2)(a), the relevant details of a person are— (a) the person’s name and address and the reference to 1 or more documents by which the identity of that person is proved; and in the case of a person bidding on behalf of another per­ son, the name and address of that other person and the reference to 1 or more documents by which the identity of that person is proved.
(b) 10 15 The person engaged to conduct the auction must compile the 20 Bidders Record required by this section for the auction unless some other person engaged to act in respect of the sale or act­ ing on behalf of the person has made the Bidders Record for the auction.

The person engaged to conduct the auction must keep the Bid­ 25 ders Record for at least 3 years and must keep all the Bidders Records made by the person together in the form of a register of Bidders Records.
Regulations made under this Act may make provision for, or with respect to,— (a) 30 conferring an entitlement on a seller of land to inspect the Bidders Record for the sale of the land; and the manner and form in which a Bidders Record is to be made and kept; and the information that a seller may obtain from the auc­ 35 tioneer about the details in the Bidders Record for the purpose of enabling the seller to bring about or effect the transaction or proposed transaction to which the auction relates; and (b) (ba) (2) (3) (4) (5) (6) 76 Real Estate Agents Bill Part 5 cl 139 (c) requiring other information to be included in the Bid­ ders Record.
Compare: Property, Stock and Business Agents Act 2002 s 68 (NSW) 138 Details to be established by proof of identity (1) No person may enter a bidder’s name and address in a Bidders 5 Record unless both the bidder’s name and address details are recorded and the bidder’s identity is established by the produc­ tion to the person of— (a) 1 or more documents proving the identity of the bidder; and in the case of the details of a person on whose behalf a bidder is to bid, a letter of authority to bid on the per­ son’s behalf specifying the person’s name and address and the reference to 1 or more documents by which the identity of that person is proved.
(b) (2) The only documents that may be used to prove the identity of a person for the purposes of this section are— (a) a driver licence that is issued or has effect under the Land Transport Act 1998; or a New Zealand passport; or an overseas passport; or any other proof of identity that may be prescribed by regulations.
(b) (c) (d) 10 15 20 (3) No person may enter the relevant details of a bidder in a Bid­ ders Record if the person knows, or has reasonable cause to 25 suspect, that the details are false in a material particular.
Compare: Property, Stock and Business Agents Act 2002 s 69 (NSW) 139 Conﬁdentiality of Bidders Record (1) A person who compiles a Bidders Record, and any licensee or auctioneer to whom the contents of a Bidders Record are 30 disclosed under this Act, must not— (a) divulge any information that the Bidders Record con­ tains except as authorised or required by this Act; and use the Bidders Record or the information that it con­ tains for any purpose not authorised by this Act.
(b) 35 77 Part 5 cl 140 Real Estate Agents Bill (2) This section does not prevent the divulging of information in accordance with a requirement imposed by or under this Act.
Compare: Property, Stock and Business Agents Act 2002 s 70 (NSW) 140 Bids may only be taken from registered bidders (1) A person (person A) who conducts an auction must not take 5 a bid from a person (person B) unless— (a) the relevant details of person B have been entered before the bid is taken in a Bidders Record made in respect of the auction in accordance with section 137, and person A is in possession of that record when the bid is taken; 10 and person B identiﬁes himself or herself at the auction by displaying an identifying number allocated to person B for the purposes of the auction and recorded in the Bidders Record as the identifying number allocated to 15 person B.
(b) (2) If person A refuses to take a bid from person B because of this section, person A is not liable for that refusal.
Compare: Property, Stock and Business Agents Act 2002 s 67(1), (2) (NSW) 141 Vendor’s bids to be identiﬁed The person who conducts the auction must either,— (a) before the commencement of the auction, provide all bidders with sufﬁcient information to enable each bid­ der to identify any bid that is made by or on behalf of the vendor as a vendor’s bid; or identify any bid made by or on behalf of the vendor as a vendor’s bid as soon as the bid is made.
(b) Part 6 Miscellaneous provisions Subpart 1—Offences and penalties 142 General offences Every person commits an offence who knowingly contravenes any provisions of this Act or any regulations made under this Act.
78 20 25 30 Real Estate Agents Bill Part 6 cl 146 143 General penalty Every person who commits an offence against this Act or against any regulations made under this Act for which no penalty is provided elsewhere than in this section is liable,— (a) in the case of an individual, to a ﬁne not exceeding 5 $40,000; or in the case of a company or body corporate, to a ﬁne not exceeding $100,000.
(b) 144 Forfeiture for certain offences (1) In addition to any ﬁne that may be imposed, a person who com­ 10 mits an offence under section 146 or 147 is liable to forfeit to the Crown all money received by him or her by way of com­ mission, proﬁt, or remuneration for any services or work per­ formed by him or her as an unlicensed agent, branch manager, or salesperson.
15 (2) All money forfeited to the Crown under subsection (1) is re­ coverable at the suit of the Crown in any court of competent jurisdiction, or may be assessed by the court by which the de­ fendant is convicted, and be recoverable as a ﬁne.

Compare: 1976 No 9 s 16(2), (3) 20 145 Offences to be punishable on summary conviction Every offence against this Act or regulations made under this Act is punishable on summary conviction.
Offences relating to requirement to be licensed 146 Offence to carry on business of agent, branch manager, or 25 salesperson unless licensed or exempt A person commits an offence if the person carries out any real estate agency work without being licensed to do so under this Act or exempt from the requirement to be licensed.

(a) (b) being licensed to do so under this Act; or being exempt from the requirement to be licensed.
30 79 Part 6 cl 147 Real Estate Agents Bill 147 Offence of holding out as agent, branch manager, or salesperson unless licensed or exempt A person commits an offence who holds out that any person (including the person himself or herself) who is neither li­ censed under this Act or exempt from the requirement to be 5 licensed, is an agent, branch manager, or salesperson.
148 Offence of employing or contracting unlicensed or non­exempt person as agent, branch manager, or salesperson A person commits an offence who employs or contracts, or 10 continues to employ or contract, as an agent, branch manager, or salesperson a person— (a) who is not licensed or exempt from the requirement to be licensed under this Act; or (b) whose licence has been suspended under this Act; or (c) whose licence has been cancelled under this Act; or (d) who is prohibited from working for an agent in a real estate business in accordance with an order made under section 107.
15 Offences relating to application for licence 20 149 Offence to provide false or misleading information (1) A person commits an offence who, for the purposes of any application for a licence or for renewal of a licence under this Act,— (a) supplies to the Registrar any false or misleading infor­ 25 mation, knowing it to be false or misleading; or supplies to the Registrar any false or misleading infor­ mation.
(b) It is a defence to a charge under subsection (1)(b) that the person to whom the charge relates did not know that he or 30 she was providing false or misleading information and had exercised all reasonable care and due diligence to ensure that the information provided was not false or misleading.
(2) 80 Real Estate Agents Bill Part 6 cl 150C 150 Offence to fail to notify change in circumstances (1) A licensee or applicant for a licence commits an offence who, without reasonable excuse, fails to notify the Registrar of any change in circumstances as required by section 66.

Every person who commits an offence against this section is 5 liable,— (a) (2) in the case of an individual, to a ﬁne not exceeding $10,000; or in the case of a company, to a ﬁne not exceeding $50,000.
(b) 10 Offences relating to Authority’s powers of possession and inspection of documents 150A Offence to fail to comply with requirement to give possession of documents A person commits an offence who, without reasonable excuse, 15 fails to comply with a requirement to give the Authority pos­ session of documents in accordance with a notice given under section 29A.
150B Offence to fail to comply with a requirement to produce ﬁnancial records A person commits an offence who, without reasonable excuse, fails to comply with a requirement stated in a notice given under section 30(2) to produce ﬁnancial records and to per­ mit a person authorised by the Authority to inspect and copy those records.
20 25 Offences relating to requirements for real estate transactions 150C Offence to fail to provide information or document (1) A person commits an offence who, without reasonable excuse, fails to comply with a requirement to produce any papers, 30 documents, records, or things in accordance with a notice given under section 82.
Every person who commits an offence against this section is liable,— (2) 81 Part 6 cl 151AB Real Estate Agents Bill (a) (b) in the case of an individual, to a ﬁne not exceeding $10,000; or in the case of a company, to a ﬁne not exceeding $50,000.
151AB Offence to fail to pay person lawfully entitled to money 5 received An agent commits an offence if that agent fails to pay a person lawfully entitled to money received in respect of any transac­ tion in accordance with section 118 or otherwise contravenes that section.

10 151AAB Offence to fail to hold money An agent commits an offence who fails to hold money required to be held by section119 for the period required by that sec­ tion.
151 Offence to fail to disclose conﬂict of interest 15 A person commits an offence who fails to disclose information in accordance with section 134.

152 Offence to render false accounts (1) A person commits an offence who renders an account purport­ ing to be an account for any money received by him or her in 20 his or her capacity as a licensee, knowing the account to be false in a material particular.
Every person who commits an offence against this section is liable,— (a) in the case of an individual, to imprisonment for a term 25 not exceeding 2 years or a ﬁne not exceeding $40,000, or both; or in the case of a company or body corporate, to a ﬁne not exceeding $100,000.
(b) (2) 82 Real Estate Agents Bill Part 6 cl 154 Offences relating to auction of land 152A Offence to breach conﬁdentiality of Bidders Record A person commits an offence if that person divulges any in­ formation contained in the Bidders Record or uses the record of that information in contravention of section 139.

5 152B Offence to take a bid from unregistered bidder A person conducting an auction commits an offence if that person takes a bid otherwise than in accordance with section 140.
Offences relating to investigation 10 153 Offence to resist, obstruct investigation, etc A person commits an offence who, without reasonable ex­ cuse,— (a) resists, obstructs, deceives, or attempts to deceive any person who is exercising or attempting to exercise any 15 power or perform any function under this Act; or fails to comply with any requirement under this Act; or gives to any person who is exercising or attempting to exercise any power or perform any function under this Act any particulars knowing those particulars are false 20 or misleading in any material respect.
(b) (c) Subpart 2—Service 154 Service of notice and documents (1) Any notice or other document required or authorised by this Act to be given to or served on any person, is sufﬁciently given 25 or served if— (a) (b) it is delivered to that person; or it is left at that person’s usual or last known place of abode or business or at an address speciﬁed for that pur­ pose in any document received from that person; or it is posted in a letter addressed to that person by name at that place of abode or business or address; or.
it is sent in the prescribed manner (if any).

(c) (d) 30 83 Part 6 cl 154A Real Estate Agents Bill (2) Any notice or other document required or authorised by this Act to be given to or served on the Authority is sufﬁciently given or served if— (a) (b) (c) it is delivered to the Registrar; or it is left at the ofﬁce of the Authority; or it is posted in a letter addressed to the Authority at the ofﬁce of the Authority; or it is sent in the prescribed manner (if any).
(2A) Any notice or other document required or authorised by this (d) 5 Act to be given or served on a business partnership is taken 10 to be given or served on the partnership if, in accordance with subsection (1), it is given or served on any one of the part­ ners.
If any notice or other document is sent by post, it is, unless the contrary is shown, treated to have been given or served 15 on the addressee at the time when the letter would have been delivered in the ordinary course of the post, and, in proving service of the notice, it is sufﬁcient to prove that the letter was properly addressed and posted.

This section does not apply to notices or other documents 20 served or given in any proceedings in any court.
(3) (4) Subpart 2A—Civil remedies 154A Civil remedies not affected (1) Nothing in this Act affects any civil remedy that a person may have against an agent, branch manager, or salesperson.

Subsection (1) is subject to section 107(3).
Compare: 1976 No 9 s 120 (2) 25 Subpart 3—Regulations 155 Regulations The Governor­General may, by Order in Council, make regu­ 30 lations for all or any of the following purposes: (aa) exempting any person or class of persons from the re­ quirement to be licensed under this Act and prescribing any terms and conditions of such an exemption: 84 Real Estate Agents Bill Part 6 cl 155 (f) (c) (a) (e) (d) (b) (fa) prescribing the qualiﬁcations necessary before a person is entitled to be licensed as an agent, branch manager, or salesperson: prescribing countries, States, or territories whose laws prohibiting any person from acting as an agent, branch 5 manager, or salesperson are recognised: prescribing the form, manner, or content of applica­ tions, notices, or any other documentation or informa­ tion required under this Act: prescribing search criteria for the register: the particu­ 10 lars to be entered in the register: prescribing changes of circumstance that must be noti­ ﬁed to the Registrar: prescribing the manner and form in which complaints may be made to the Authority about licensees or former 15 licensees: prescribing any act or thing necessary to supplement or render more effectual the provisions of this Act as to the conduct of proceedings before the Disciplinary Tribunal: providing for an audit from time to time of the trust accounts of all agents, and the manner in which and the persons or class of persons by whom that audit must be conducted, and for a report of the result of the audit: (ga)
 prescribing for the appointment of auditors, auditing re­ 25 quirements, and conferring such powers, including the power of inspection of documents and records, as may be necessary or desirable for the purposes of carrying out an audit; and prescribing the form in which a client’s consent must be 30 given for the purposes of section 132: prescribing any form of proof of identity that is accept­ able for the purposes of section 138: prescribing requirements relating to the conduct of any auctions for the sale of
 land: prescribing offences against any regulations made under this Act:prescribing offences in respect of the contravention of or non­compliance with any regula­ (g) (k) (h) 35 20 (j) (i) 85 Part 6 cl 156 Real Estate Agents Bill tions made under this Act, and setting the maximum penalty for each offence, which– (i) in the case of an individual, may not exceed $25,000; or in the case of a company, may not exceed 5 $50,000: (ii) (l) (m) (n) (o) (p) providing for exemptions under section 11: prescribing the maximum amount of compensation payable under section 107(2)(g): prescribing periods of time for the purposes of giving 10 notice, making submissions, and other matters: prescribing the manner for giving notice or service under this Act: providing for any other matters contemplated by this Act, necessary for its administration, or necessary for 15 giving it full effect.
(2) Any regulations made under subsection (1)(aa) exempting any person or class of persons from the requirement to be li­ censed under this Act may be made only on the recommenda­ tion of the Minister given in accordance with subsection (3).
20 The Minister must not make a recommendation under sub­ section (2) unless the Minister— (a) (3) is satisﬁed that— (i) there is no material consumer beneﬁt to be gained by requiring the person or class of persons con­ 25 cerned to be licensed; and there are sufﬁcient processes in place to ensure competent and ethical conduct on the part of that person or those persons; and (ii) (b) has consulted with representatives of organisations that, 30 in the opinion of the Minister, have an interest in the proposed exemption.
Subpart 4—Provisions relating to repeal of Real Estate Agents Act 1976 Repeal of Real Estate Agents Act 1976 35 156 Repeal of Real Estate Agents Act 1976 The Real Estate Agents Act 1976 (1976 No 9) is repealed.
86 Real Estate Agents Bill Part 6 cl 159 157 Transfer of assets and liabilities On the commencement of this Act, the assets and liabilities of the Real Estate Agents Licensing Board constituted under section 4 of the Real Estate Agents Act 1976 vest in the Real Estate Institute of New Zealand Incorporated (REINZ).
5 157A Membership of REINZ A person who immediately before the commencement of sec­ tion 156 is a member of REINZ continues to be a member of REINZ in accordance with the rules of REINZ until the per­ son’s membership is terminated in accordance with those rules 10 or until the person resigns his or her membership.
Winding up of Fidelity Guarantee Fund 158 Continuation of certain provisions of Real Estate Agents Act 1976 Despite the repeal of the Real Estate Agents Act 1976 by sec­ 15 tion 156, the following provisions of that Act continue to be in force until the date on which the Real Estate Agents Fidelity Guarantee Fund is wound up: (a) (b) (c) Compare: 2006 No 1 s 363 sections 71 to 75(1): sections 79 to 87: the Schedule.
20 159 Claims in relation to Real Estate Agents Fidelity Guarantee Fund (1) No person has any claim against the Real Estate Agents Fi­ 25 delity Guarantee Fund in relation to any theft committed on or after the date on which the repeal of the Real Estate Agents Act 1976 takes effect.
(2) No person has any claim against the Real Estate Agents Fi­ delity Guarantee Fund in respect of any theft committed be­ 30 fore the date on which the repeal of the Real Estate Agents Act 1976 takes effect unless that person has, on or before the last date for submitting claims, given notice of the claim in writing to the Council of REINZ or to the committee of management 87 Part 6 cl 160 Real Estate Agents Bill (3) appointed under section 74(1) of the Real Estate Agents Act 1976.
The last date for submitting a claim is the last day of the period of 12 months beginning with the date on which a report under section 161(1) is submitted by the Council of REINZ to the 5 Minister.
Compare: 2006 No 1 s 365 160 Public notice of last day for making claims (1) The Council of REINZ must give public notice of the last date for submitting any claim against the Real Estate Agents Fi­ 10 delity Guarantee Fund in respect of any theft committed be­ fore the date on which the repeal of the Real Estate Agents Act 1976 takes effect.
The public notice under subsection (1) must be given at least twice before that last date, the ﬁrst such notice being given not 15 less than 3 months before that date and the second being given not more than 1 month and not less than 14 days before that date.
Compare: 2006 No 1 s 366 (2) 161 Winding up of Real Estate Agents Fidelity Guarantee 20 (1) (2) Fund If the Council of REINZ forms the opinion that all claims against the Real Estate Agents Fidelity Guarantee Fund that it is aware of have been received and fully dealt with, it must submit a report to the Minister stating that opinion and outlin­ 25 ing the reasons for that opinion.
If, in the period of 12 months beginning with the date on which the Council of REINZ submits a report under subsection (1), further claims against the Real Estate Agents Fidelity Guaran­ tee Fund are submitted to the Council, it must receive, and deal 30 with, those claims.

(3) After the expiry of the period of 12 months referred to in sub­ section (2), the Council of REINZ must decline to receive any further claims against the Real Estate Agents Fidelity Guaran­ tee Fund.
Subsection (5) applies if— (4) 35 88 Real Estate Agents Bill Part 6 cl 163 (a) (b) no further claims against the Real Estate Agents Fidelity Guarantee Fund are received in the period referred to in subsection (2); or the Council of REINZ has fully dealt with any further claims against the Real Estate Agents Fidelity Guaran­ 5 tee Fund that were received in the period referred to in subsection (2).
The Council of REINZ must report to the Minister on the ap­ plication of this subsection and submit to the Minister its ﬁnal report and ﬁnal audited accounts in respect of the Real Estate 10 Agents Fidelity Guarantee Fund.

The Minister may, on receiving that report and those accounts, recommend to the Governor­General the making of an Order in Council under subsection (7).
The Governor­General may, by Order in Council, declare that 15 the Real Estate Agents Fidelity Guarantee Fund is wound up on a date speciﬁed in the order.
Compare: 2006 No 1 s 367 (5) (6) (7) 162 Application of Real Estate Agents Fidelity Guarantee Fund on winding up On the date speciﬁed in the Order in Council made under sec­ tion 161(7) on which the Real Estate Agents Fidelity Guar­ antee Fund is wound up, any remaining assets of the fund con­ tinue to be the property of REINZ but cease to be held in trust for the purposes stated in section 81 of the Real Estate Agents 25 Act 1976.
20 Transitional provisions 163 Continuation in ofﬁce for purposes of transitional (1) provisions For the purposes of sections 164 to 169, the Real Estate 30 Agents Licensing Board constituted under section 4 of the Real Estate Agents Act 1976, the Registrar of Real Estate Agents appointed under section 35 of that Act, and every Regional Disciplinary Committee established pursuant to the rules of the Real Estate Institute under section 70 of that 35 89 Part 6 cl 164 Real Estate Agents Bill (2) Act continue in ofﬁce and continue to have all the powers necessary to fulﬁl those purposes.
If there is a vacancy in any of the bodies or in the ofﬁce of Registrar referred to in subsection (1), the Minister may ap­ point any person the Minister considers appropriate to ﬁll the 5 vacancy.

164 Agents licensed under Real Estate Agents Act 1976 (1) 15 Every person is deemed to hold a licence as an agent under this Act who, immediately before the commencement of this Act, holds a current agent’s licence under the Real Estate Agents 10 Act 1976.
The licence that the person is deemed to hold under subsec­ tion (1) continues in force, until the expiration of the year in respect of which the licence was issued under the Real Estate Agents Act 1976 and may be renewed under this Act.
Every person is deemed to hold a licence as an agent under this Act if, immediately before the commencement of this Act, the person is entitled to apply for a renewal of his or her or its agent’s licence under the Real Estate Agents Act 1976 and, on the commencement of this Act, the person’s application for 20 that renewal is pending before the Real Estate Agents Licens­ ing Board.
The licence that the person is deemed to hold under subsec­ tion (3) continues in force until the Authority has been noti­ ﬁed by the Real Estate Agents Licensing Board under section 25 167(2) of the Board’s determination and has taken any appro­ priate action on that advice.

This section does not limit the provisions of this Act that au­ thorise the cancellation of a licence or the suspension of a li­ censee.
30 (2) (3) (4) (5) 165 Salespersons and branch managers approved under Real Estate Agents Act 1976 Every person is deemed to hold a licence as a salesperson or as a branch manager under this Act who, on the commencement of this Act, holds a current certiﬁcate of approval as a sales­ 35 (1) 90 Real Estate Agents Bill Part 6 cl 166 (2) (3) (4) (5) person or as a branch manager under the Real Estate Agents Act 1976.
The licence that the person is deemed to hold under subsec­ tion (1) continues in force until the expiry of the year in re­ spect of which the licence was issued under the Real Estate 5 Agents Act 1976 and may be renewed under this Act.
Every person is deemed to hold a licence as a salesperson or as branch manager under this Act if, immediately before the commencement of this Act, the person is entitled to apply for a renewal of his or her certiﬁcate of approval under the Real 10 Estate Agents Act 1976 and, on the commencement of this Act, the person’s application for that renewal is pending before the Real Estate Agents Licensing Board.
The licence that the person is deemed to hold under subsec­ tion (3) continues in force until the Authority has been noti­ 15 ﬁed by the Real Estate Agents Licensing Board under section 167(2) of the Board’s determination and has taken any appro­ priate action on that advice.

This section does not limit the provisions of this Act that au­ thorise the cancellation of a licence or the suspension of a li­ 20 censee.
(6) A person who, by this section, is deemed to hold a licence and who continues to be employed or engaged by the same agent retains the status that the person had before the commence­ ment of this Act, whether as employee or as independent con­ 25 tractor, until that status is altered by agreement of the parties.
166 Continuing effect of permits issued under Real Estate (1) (2) Agents Act 1976 Every permit issued under section 34 of the Real Estate Agents Act 1976 that is in effect immediately before the commence­ 30 ment of this Act continues in effect according to its tenor de­ spite any provision of this Act (other than this section).

The Authority has, and may exercise, the power conferred on the Real Estate Licensing Board by section 34(5) of the Real Estate Agents Act 1976.
35 91 Part 6 cl 167 Real Estate Agents Bill (3) Every permit referred to in subsection (1), unless sooner ex­ pired or revoked, expires on the date that is 2 years after the commencement of this Act.
167 Applications pending at commencement of this section to (1) be dealt with under Real Estate Agents Act 1976 Every application for a licence or a certiﬁcate of approval, or for a renewal of a licence or a certiﬁcate of approval, made under the Real Estate Agents Act 1976 that is, immediately be­ fore the commencement of this Act, pending before the Real Estate Agents Licensing Board must be considered and deter­ 10 mined as if this Act (other than this section) had not been en­ acted.
5 15 (3) (4) (2) After determining an application of the kind referred to in sub­ section (1), the Real Estate Agents Licensing Board must promptly advise the Authority of the determination.

If the Authority receives advice under subsection (2) that the Real Estate Agents Licensing Board has issued an agent’s licence to a person or granted an application for the renewal of such a licence, the Authority must issue a licence as an agent to the person under this Act.
If the Authority receives advice under subsection (2) that the Real Estate Agents Licensing Board has issued a certiﬁcate of approval as a salesperson or branch manager to a person or granted an application for the renewal of such a certiﬁcate, the Authority must issue a licence as a salesperson or as branch 25 manager to the person under this Act.
The Real Estate Agents Licensing Board and any person hold­ ing ofﬁce as Registrar under the Real Estate Agents Act 1976 continue to have all the powers under that Act that are neces­ sary for performing their duties under this section.
(5) 20 30 (1) 167A Continuing effect of agency agreements entered into before repeal of Real Estate Agents Act 1976 The repeal by section 156 of the Real Estate Agents Act 1976 does not affect the continuation of any subsisting contracts of the kind described in section 62(b) of that Act, and any such 35 contract continues to be governed by that Act.
92 Real Estate Agents Bill Part 6 cl 169 (2) A contract of the kind described in subsection (1) may be renewed only by an agency agreement to which section 124 applies.

Section 62 of the Real Estate Agents Act 1976 continues to ap­ ply to any service or work performed, before the commence­ 5 ment of section 156, by any person as a real estate agent under that Act.
(3) 168 Continuation of pending disciplinary proceedings (1) All applications under any of sections 94, 95, and 99 of the Real Estate Agents Act 1976, every inquiry under section 97 10 of that Act, and every complaint laid under section 102 of that Act with a Regional Disciplinary Committee, and every matter referred to a sub­committee of a Regional Disciplinary Com­ mittee in accordance with rules made under section 70 of that Act that have been commenced before the commencement of 15 this section and that have not been completed before that com­ mencement are to be continued and completed as if that Act had not been repealed.
If the Real Estate Agents Licensing Board, in completing any application referred to in subsection (1), determines that the 20 licence of a licensee is to be cancelled or that a licensee is to be suspended, the Board must promptly notify the Authority of that determination and the Authority must give effect to the determination by taking the appropriate action under this Act.

Subsection (1) is subject to subsection (2).
25 (2) (3) 169 Allegations about conduct before commencement of this (1) section The Complaints Assessment Committee may consider a com­ plaint, and the Tribunal may hear a charge, against a licensee or a former licensee in respect of conduct alleged to have oc­ 30 curred before the commencement of this section but only if the Committee or the Tribunal is satisﬁed that,— (a) at the time of the occurrence of the conduct, the licensee or former licensee was licensed or approved under the Real Estate Agents Act 1976 and could have been com­ 35 plained about or charged under that Act in respect of that conduct; and 93 Part 6 cl 170 Real Estate Agents Bill (2) (b) the licensee or former licensee has not been dealt with under the Real Estate Agents Act 1976 in respect of that conduct.
If, after investigating a complaint or hearing a charge of the kind referred to in subsection (1), the Committee or Tribunal 5 ﬁnds the licensee or former licensee guilty of unacceptable conduct or of misconduct in respect of conduct that occurred before the commencement of this section, the Committee or the Tribunal may not make, in respect of that person and in respect of that conduct, any order in the nature of a penalty 10 that could not have been made against that person at the time when the conduct occurred.
170 Amendments to other enactments The enactments listed in Schedule 2 are amended in the man­ ner set out in that schedule.

15 94 Real Estate Agents Bill Schedule 1 Schedule 1 Provisions relating to Tribunal s 101 1 Oath of ofﬁce Each member of the Tribunal must, before entering on the per­ 5 formance of his or her functions as a member of the Tribunal, swear or afﬁrm before a Judge of the High Court that he or she will faithfully and impartially perform his or her duties as a member of the Tribunal.
2 (1) Term of ofﬁce Every member of the Tribunal is to be appointed for a term not exceeding 3 years.

10 (2) A member of the Tribunal is eligible for reappointment from time to time.
(3) Where the term of ofﬁce of a member of the Tribunal has ex­ 15 pired, that member, unless he or she sooner dies or vacates ofﬁce under clause 3, continues to hold ofﬁce, by virtue of the appointment for the term that has expired, until— (a) (b) (c) that member is reappointed; or a successor to that member is appointed; or that member is informed in writing by the Minister that he or she is not to be reappointed and is not to hold ofﬁce until a successor is appointed.
20 Vacation of ofﬁce 3 (1) A member of the Tribunal may at any time be removed from 25 ofﬁce by the Governor­General for incapacity affecting per­ formance of duty, neglect of duty, or misconduct, proved to the satisfaction of the Governor­General.

(2) A member of the Tribunal is deemed to have vacated his or her ofﬁce if he or she is adjudged bankrupt under the Insolvency 30 Act 2006.

(3) A member of the Tribunal may at any time resign his or her ofﬁce by giving notice in writing to the Minister.
4 Remuneration The chair and other members of the Tribunal are to be paid, 35 out of public money, remuneration by way of fees, salary, or 95 Schedule 1 Real Estate Agents Bill allowances and travelling allowances in accordance with the Fees and Travelling Allowances Act 1951, and the provisions of that Act apply accordingly as if the chair or any other mem­ ber were a member of a statutory board within the meaning of that Act.
5 Members of Tribunal No person holding ofﬁce as a member of the Tribunal is deemed by reason of his or her holding of that ofﬁce to be employed in the Government service for the purposes of the Government Superannuation Fund Act 1956 or in the State 10 services for the purposes of the State Sector Act 1988.
Witness summons For the purposes of any matter before the Tribunal, the Tri­ bunal may, of its own initiative, issue a summons to any per­ son requiring that person to attend before the Tribunal and give 15 evidence.

The summons must be in the prescribed form, and may require the person to produce before the Tribunal any books, papers, documents, records, or things in that person’s possession or under that person’s control in any way relating to the matter.
The power to issue a summons under this clause may be exer­ cised by the Tribunal or by any ofﬁcer of the Tribunal purport­ ing to act by the direction or with the authority of the Tribunal.
20 Witnesses’ expenses Every person attending the Tribunal on a summons, and every 25 other person giving evidence before the Tribunal, is entitled, subject to subclause (2), to be paid, by the party calling that person, witnesses’ fees, allowances, and travelling expenses according to the scales for the time being prescribed by regu­ lations made under the Summary Proceedings Act 1957, and 30 those regulations apply accordingly.
The Tribunal may disallow the whole or any part of any sum payable under subclause (1).

5 6 (1) (2) (3) 7 (1) (2) 96 Real Estate Agents Bill Schedule 1 8 (1) Power to take evidence on oath The Tribunal may take evidence on oath and, for that purpose, the Tribunal or any other person acting under the express or implied direction of the Tribunal may administer the oath.

(2) On any indictment for perjury it is sufﬁcient to prove that the 5 oath was administered in accordance with subclause (1).
9 Protection and privileges of witnesses Every person has the same privileges and immunities as wit­ nesses have in a court of law in relation to— (a) (b) the giving of information to the Tribunal; and the giving of evidence to, or the answering of questions put by, the Tribunal; and the production of papers, documents, records, or things to the Tribunal.
(c) 10 10 Privileges and immunities of counsel Every counsel appearing before the Tribunal has the same privileges and immunities as counsel in a court of law.
15 Tribunal and members, etc, not personally liable 11 (1) Neither the Tribunal, nor any member, ofﬁcer, or agent of the (b) Tribunal, is under any criminal or civil liability in respect of— 20 any act done or omitted to be done in the course of per­ (a) forming any of their functions or duties, or exercising any powers under this Act; any words spoken or written at, for the purposes of, the hearing or any inquiry or other proceedings under this 25 Act; or anything contained in any notice given under this Act.
(c) Subclause (1) does not apply if the Tribunal or the person concerned has acted in bad faith.

Tribunal to have seal The Tribunal must have a seal, which must be judicially no­ ticed in all courts and for all purposes.

30 (2) 12 97 Schedule 2 Real Estate Agents Bill Schedule 2 Amendments to other enactments s 170 Auctioneers Act 1928 (1928 No 29) Section 13: repeal.

5 Crown Entities Act 2004 (2004 No 115) Part 1 of Schedule 1: “Real Estate Agents Authority”.
insert in its appropriate alphabetical order: Employment Relations Act 2000 (2000 No 24) Section 6(4): omit “Real Estate Agents Act 1976” and substitute 10 “Real Estate Agents Act 2007”.
Financial Transactions Reporting Act 1996 (1996 No 9) The deﬁnition of real estate agent in section 2(1): repeal and sub­ stitute: “real estate agent has the same meaning as the deﬁnition of 15 agent in section 4 of the Real Estate Agents Act 2007.” Paragraph (b) of the deﬁnition of real estate transaction in section 2(1): omit “Real Estate Agents Act 1976” and substitute “Real Estate Agents Act 2007”.
20 Lawyers and Conveyancers Act 2006 (2006 No 1) Section 36(2): omit “real estate agent who holds a licence in force under the Real Estate Agents Act 1976” and substitute “person who holds a current licence under the Real Estate Agents Act 2007”.
Section 36: insert the following subsection after subsection (2): “(2A) However, subsection (2) does not apply to a person who, 25 under the Real Estate Agents Act 2007, holds a licence as a salesperson unless the person has had at least 6 months experi­ ence as such as a licensee.” Maori Trustee Act 1953 (1953 No 95) Section 45A(1): omit “as a real estate agent under the Real Estate 30 Agents Act 1976” and substitute “as an agent under the Real Estate Agents Act 2007”.
98 Real Estate Agents Bill Maori Trustee Act 1953 (1953 No 95)—continued Section 45A(7): omit “the Real Estate Agents Act 1976” and substi­ tute “the Real Estate Agents Act 2007”.

Privacy Act 1993 (1993 No 28) Part 1 of Schedule 2: insert the following item in its appropriate al­ phabetical order: 5 “Real Estate Agents Act 2007 sections 62 to 69”.

Summary Proceedings Act 1957 (1957 No 87) Part 2 of Schedule 1: omit the item relating to the Real Estate Agents Act 1976.
Unclaimed Money Act 1971 (1971 No 28) Section 5(1)(h): omit “any real estate agent within the meaning of 10 the Real Estate Agents Act 1976” and substitute “any agent within the meaning of the Real Estate Agents Act 2007”.

Legislative history Introduction (Bill 185–1) First reading and referral to Justice and Electoral Committee 3 December 2007 11 December 2007 12 Published under the authority of the House of Representatives—2008 Wellington, New Zealand: 99