Home buyers and sellers will be better protected from dubious real estate agents under a new code of conduct which comes into effect today.
The new Professional Conduct and Client Care Practice Rules (Code of Conduct), which have been developed by the Real Estate Agents Authority (REAA), set the minimum standards required of New Zealand’s 12,500 real estate agents.
REAA Chief Executive, Kevin Lampen-Smith, said the previous code of conduct was working well, however, after three years it need updating to continue to protect buyers and sellers and improve standards in the real estate industry.
“The new Code of Conduct, along with continuing education, helps ensure a professional industry and informed buyers and sellers,” said Mr Lampen-Smith.
Changes include:
- having to explain to clients when an agency agreement ends
- recommending to all parties that they get legal advice before signing agency or sale and purchase agreements
- having to explain to a prospective client how they chose to sell their property
“There is also a new rule that is designed to help protect sellers from the risk of paying two commissions and new rules for buyers’ agents,” added Mr Lampen-Smith.
