Buyer's guide and information
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Buyer's guide
and information
Contents
Acknowledgements by buyers 1
Anti-money laundering information 3
REA guide – sale and purchase agreements 11
REA guide – professional conduct and client care rules 19
Barfoot & Thompson complaints process 27
Barfoot & Thompson privacy policy for buyers and sellers 29
Taxation (land information) legislation for buyers and sellers 33
Overseas Investment Office approval information for buyers and sellers 35
Unit Title information for buyers and sellers 47
Tenancy Services Regulations – insulation requirements information for buyers 59
End of this section.
Consents and disclosure
- buyer acknowledgement
(prior to signing an agreement for sale and purchase of real estate offer)
Method of sale
Auction Tender Fixed price Negotiation
Property address ..................................................................................................................................................................................................................
Listing ID number �����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Buyer name �����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Buyer address ������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Buyer contact details ����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Buyer’s solicitor ����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Contact details �����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Selling salesperson ��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Branch ����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
and/or
Selling salesperson ��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Branch ����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
The buyer acknowledges that prior to signing an agreement for sale and purchase of real estate offer for the above
property they have been:
Advised (Delete if not applicable) Initial
– At the date of acceptance of the offer by the vendor that they will
be required to pay a deposit of 10% of the purchase price to the
Barfoot & Thompson Trust Account. ������������������������������������������������������
– Of any work that the vendor of the property has declared which
may have required permits/local body consents. ������������������������������������������������������
– Of any pending works that the vendor has declared or agreed to
on adjoining properties or in the immediate area. ������������������������������������������������������
– That it was recommended to them that they seek legal, technical,
or other advice. ������������������������������������������������������
RES00016-2006
Page 1 of 60 | Acknowledgements by buyers barfoot.co.nz
Initial
– Of any occupational health and safety issues that the vendor has disclosed. ������������������������������������������������������
– That the property type is a 'unit title' and that they have been made aware of the
aspects that relate to that property type. ������������������������������������������������������
– The vendor of the property is a licensee/employee of Barfoot & Thompson and
that the appropriate clause has been included in the agreement for sale and
purchase of real estate offer. ������������������������������������������������������
– The property is of a cladding type that may be at risk of weathertightness
problems and that it was recommended that they seek the expert advice
of a suitably qualified person. ������������������������������������������������������
– The vendor of the property is GST registered for the purposes of the sale and that
it was recommended that they seek their own expert advice. ������������������������������������������������������
– Of the chattels (if any) that are included in the sale of this property. ������������������������������������������������������
Provided with the (Delete if not applicable) Initial
– Real Estate Authority New Zealand residential property sale and purchase
agreement guide. ������������������������������������������������������
– Barfoot & Thompson in-house complaints procedure and advised that they
may access the Real Estate Authority complaints process without first using the
Barfoot & Thompson in-house procedures and that any use of the Barfoot &
Thompson in-house procedures does not preclude the making of a complaint to
the Real Estate Authority. ������������������������������������������������������
– A copy of the Barfoot & Thompson Privacy Policy ������������������������������������������������������
– Taxation (land information) legislation guidelines relating to the requirement for a
New Zealand Inland Revenue taxation number. ������������������������������������������������������
– Overseas Investment Office information guidelines relating to the purchase of
residential land in New Zealand. ������������������������������������������������������
– Anti-money laundering information guidelines. ������������������������������������������������������
– Land Information Memorandum for the property. ������������������������������������������������������
– Certificate of Title for the property and that it was recommended to them that
they seek their own expert advice in regard to that document. ������������������������������������������������������
– Provided with a copy of a Form 18 pre-contract disclosure
(Unit Title properties only). ������������������������������������������������������
– The buyer acknowledges that prior to signing an agreement for the sale and
purchase of the real estate offer for the above property they have been provided
with a copy of the Tenancy Services Insulation Regulations including information
on the minimum level of insulation that is required. ������������������������������������������������������
Buyer signature......................................................................................................... Date ����������������������������������������������������������������������������������������������
I confirm that I was to advised to seek my own expert opinion in relation to any of the advice or information
provided above.
Salesperson signature........................................................................................... Date ����������������������������������������������������������������������������������������������
Salesperson signature........................................................................................... Date ����������������������������������������������������������������������������������������������
RES00016-2006
Page 2 of 60 | Acknowledgements by buyers barfoot.co.nz
Anti-money
laundering information
Under Phase 2 of the Anti-Money Laundering and Countering
Financing of Terrorism Act 2009 real estate agents are required to
conduct anti-money laundering and countering financing of terrorism
customer due diligence on all clients (vendor/seller) before the real
estate agent enters into an Agency Agreement with the client
(vendor/seller).
To meet those obligations the licensee is required 3 ‘Beneficial owner/real person’
at the time of appraisal/listing a property to obtain
verification of documentation
information and documentation from the vendor/
seller that identifies the legal name(s) of the ‘beneficial When the vendor/seller has provided the formal
owner(s)/real person(s), who are selling the property. documentation that identifies the ‘beneficial
owner(s)/real person(s)’ they must provide proof
These guidelines have been developed to assist the that the documentation that has been provided
licensee and vendor/seller through a five-step process. belongs to the person that has provided it.
1 Customer due diligence (CDD) 4 Nature and purpose
The licensee must establish the full legal name(s) The licensee must obtain property details and
of the ‘beneficial owner(s)/real person(s)’ who are assess the sale.
selling the property.
5 Document recording
2 ‘Beneficial owner/real person’ proof The licensee must then give all of that information
of identity to the licensee's branch administrator/branch
When the licensee has established who the manager for it to be recorded.
‘beneficial owner(s)/real person(s)’ are they must
obtain formal documentation to prove the identity
of those persons.
RES00016-2006
Page 3 of 60 | Anti-money laundering information barfoot.co.nz
1 Customer due diligence (CDD)
A property will be owned by: individual(s) – trust(s) – For individual registered proprietors who have a
company(ies) – other entities family trust involved in the property:
Client due diligence is where the licensee is required to – Ask the individual owners to provide a copy of
identify who the 'beneficial owner(s)/real person(s)' are. the family trust deed or if there is no trust deed
The 'beneficial owner(s)/real person(s)' are not just the available ask for the contact details of the other
registered proprietors shown on the Certificate of Title. trustees
For AML purposes they are the entities who have an – Commence the personal identification/verification
interest in the property. process on each 'beneficial owner/real person'
When the licensee is initially contacted by the For registered proprietors in the name of a Trust:
prospective vendor they should: Ask the owners to provide a copy of the trust deed and
– Obtain a Certificate of Title for the property to establish the names of the trustees
establish who the registered proprietors are on – Commence the personal identification/verification
the title document. process on each of those persons
For registered proprietors in the name of a company:
If the registered proprietors are individuals – Ask the owners to provide a copy of the company
in their own right the licensee must establish registration certificate and establish who is entitled
from the vendor if there is also a family to sign the documents and who has a 25% or
trust involved in the property. The family greater ownership in the company
trust might not be shown as a registered – Commence the personal identification/verification
proprietor on the title but they are an entity process on each of those persons
that has an interest in the property. For registered proprietors in the name of a club
or society; a co-operative; a sole trader and/or
partnership:
– Ask the owners to provide a copy of the deed/
For individual registered proprietors: registration certificate and establish who has the
authority to sign the documents
– Commence the personal identification/verification
process on each individual registered proprietor – Commence the personal identification/verification
process on each of those persons
RES00016-2006
Page 4 of 60 | Anti-money laundering information barfoot.co.nz
2 ‘Beneficial owner/real person’ proof of identity
Once the full legal name(s) of the ‘beneficial owner(s)/ Overseas passport: Must contain the name, date of
real person(s)’ have been established, documentation birth, a photograph and the signature of the person
that can prove the identity of those persons must be named
obtained.
National identity card: Must contain the name, date of
birth, a photograph and the signature of the person
named
This documentation must be obtained
for EACH AND EVERY ‘beneficial Option 2: Non-photographic identification
owner(s)/real person(s)’ One of the following:
NZ birth certificate: With - NZ driver licence or
The licensee is to ask each of the beneficial owners to International Driving Permit or 18+ card
provide identity documents. Certificate of NZ citizenship: With - NZ driver licence or
There are three identification options that can be used: International Driving Permit or 18+ card
Citizenship certificate issued by a foreign government:
Option 1: Photographic identification With - NZ driver licence or International Driving Permit
One of the following: or 18+ card
NZ passport: Must contain the name, date of birth, a
Birth certificate issued by a foreign government: With -
photograph and the signature of the person named
NZ driver licence or International Driving Permit or 18+
NZ refugee travel document: Must contain the name, card
date of birth, a photograph and the signature of the
person named Option 3: NZ driver licence identification
NZ driver licence: With - bank card or SuperGold card
NZ certificate of identity: Must contain the name, date
or IRD letter
of birth, a photograph and the signature of the person
named
NZ firearms licence: Must contain the name, date of
birth, a photograph and the signature of the person
named
Note:
Other supporting documentation may be used on a case-by-case basis.
RES00016-2006
Page 5 of 60 | Anti-money laundering information barfoot.co.nz
3 ‘Beneficial owner/real person’ verification of documentation
When the licensee has been provided with document provided must be accompanied by a
identification documentation they are required certificate signed by a trusted referee (a list detailing
to verify that it belongs to the ‘beneficial owner(s)/real who can be a trusted referee is attached).
person(s)’ that provided it.
The Trusted Referee Certificate must state that the
That can be by: trusted referee has sighted the original documents and
that the documents are a true copy and represent the
Face-to-face: identity of the named individual.
If the licensee has been dealing directly with the
‘beneficial owner(s)/real person(s)’ on a face-to-face Statutory declarations (Overseas based
basis they are to complete a licensee/‘beneficial ‘beneficial owner(s)/real person(s)’):
owner(s)/real person(s)’ certification form. When certification occurs overseas, copies of
international document identification provided by the
Trusted Referee (NZ based ‘beneficial
‘beneficial owner(s)/real person(s)’ must be certified
owner(s)/real person(s)’): by a person authorised by law in that country to take
If the licensee has not met the ‘beneficial owner(s)/real statutory declarations or equivalent in the ‘beneficial
person(s)’ on a face-to-face basis the identification owner(s)/real person(s)’ country.
4 Nature and purpose
The licensee must record details of the property – type, structure and make an assessment as to the nature of
the sale. They must also ‘assess’ the nature of the listing and if there is anything unusual or unexpected they must
record that.
5 Document recording
The ‘Beneficial owner/real person’ – proof of identity documentation and the ‘Beneficial owner/real person’
verification of documentation is then to be recorded.
RES00016-2006
Page 6 of 60 | Anti-money laundering information barfoot.co.nz
Trusted referee list
– Commonwealth representative as defined in the Oaths and Declarations Act 1957
– Member of the Police
– Justice of the Peace
– Registered medical doctor
– Kaumātua (as verified through a reputable source)
– Registered teacher
– Minister of Religion
– Lawyer (as defined in the Lawyers and Conveyancers Act 2006)
– Notary public
– New Zealand Honorary Consul
– Member of Parliament
– Chartered accountant (within the meaning of section 19 of the NZ Institute of Chartered Accountants Act 1996)
– A person who has the legal authority to take statutory declarations or the equivalent in New Zealand
RES00016-2006
Page 7 of 60 | Anti-money laundering information barfoot.co.nz
End of this section.
! ATTENTION PROVING YOUR IDENTITY
From 1 July 2018, lawyers and conveyancers are required to verify the identity1 of their
clients in accordance with anti-money laundering legislation. If your lawyer cannot verify
your identity in line with the legislation, they will not be able to act for you. If your lawyer
cannot act for you, you may not be able to satisfy the conditions of your property purchase
and will not be able to settle your property purchase or sale.
As identity verification can take days and sometimes weeks if a trust or company is
involved, we strongly recommend that you contact your lawyer as soon as possible to
have your identity verification completed.
The below gives an indication of some the documents your lawyer may ask you to present
in person or as a certified document as part of this process:
Individuals:
Passport, NZ Firearms Licence or NZ Driver Licence with another
document such as a bank statement or statement issued by a
Government agency. You will also need to provide a document with
your residential address (for example, a utility bill).
Trusts:
The Trust Deed and, for all trustees and settlors, the information
required for individuals as noted above, together with information
regarding the Trust’s source of funds or wealth. Additional information
may also be required for beneficiaries and appointers.
Companies:
Details of the company, together with the information for individuals
noted above for every individual with more than a 25% shareholding,
all individuals with effective control of the company and all individuals
acting on behalf of the company. Information regarding source of
funds or wealth may also be required.
Note: The above list is not exhaustive and is indicative only. Your lawyer will assist you with the
specific requirements in relation to your situation.
DISCLAIMER: The material and information contained herein is for general information purposes only and is not
intended to form professional legal advice. REINZ does not accept liability for any claim or other action that may arise
directly or indirectly from the use of or reliance on the material and information provided herein. REINZ recommends
you seek independent legal advice if you are unsure of your legal position.
1 Lawyers are required to complete a “Customer Due Diligence” process in accordance
with the Anti-Money Laundering and Countering Financing of Terrorism Act 2009
RES00016-2006
Page 9 of 60 | Anti-money laundering informationEnd of this section.
Buying
or selling
your
property?
New Zealand Residential
Property Sale and Purchase
Agreement Guide
Brought to you by the
Real Estate Authority
RES00016-1907
Page 11 of 60 | REA guide - sale and purchase agreementsThis guide
tells you...
what a sale and purchase agreement is
what’s in a sale and purchase agreement
what happens after you sign the
sale and purchase agreement
what happens if you have a problem
where to go for more information
RES00016-1907
Page 12 of 60 | REA guide - sale and purchase agreementsAbout settled.govt.nz
and the Real Estate
Authority
Settled.govt.nz guides kiwis through home buying and selling.
Buying or selling your home is a big move and one of the biggest financial decisions Kiwis
make. It’s a complex and sometimes stressful process with potentially significant emotional
and financial impacts if things go wrong.
Settled.govt.nz provides comprehensive independent information and guidance for home
buyers and sellers. It’ll help you feel more in control and help to get you settled. You can find
information about the risks, how they can impact you, and get useful tips on how to avoid
some of the major potential problems.
You’ll learn your tender from your BBO, your price by negotiation from your auction.
You’ll find valuable information, checklists, quizzes, videos and tools. From understanding
LIMs, to sale and purchase agreements, to when to contact a lawyer, settled.govt.nz explains
what you need to know.
Settled.govt.nz is brought to you by the Real Estate Authority (REA). REA is the independent
government agency that regulates the New Zealand real estate industry. Our aim is to
promote and protect the interests of consumers involved in real estate transactions, and to
promote a high standard of professionalism and service in the industry.
i
For more information on home buying
and selling, visit settled.govt.nz or
email info@settled.govt.nz
To find out more about REA visit
rea.govt.nz, call us on 0800 367 7322
or email us at info@rea.govt.nz RES00016-1907
Page 13 of 60 | REA guide - sale and purchase agreementsKey things to
know about
sale and purchase
agreements
• A sale and purchase agreement is a legally binding contract between you
and the other party involved in buying or selling a property.
• You must sign a written sale and purchase agreement to buy or sell a
property.
• You need to read and understand the sale and purchase agreement before
you sign it.
• You should always get legal advice before you sign the agreement and
throughout the buying and selling process.
• You can negotiate the conditions in a sale and purchase agreement.
• A sale and purchase agreement becomes unconditional once all the
conditions are met.
• The real estate agent is working for the seller of the property but must
treat the buyer fairly.
• If your agent or anyone related to them wants to buy your property, they
must get your written consent to do this. They must also give you an
independent registered valuation of your property.
RES00016-1907
Page 14 of 60 | REA guide - sale and purchase agreementsWhat a sale What’s in a sale
and purchase and purchase
agreement is agreement
A sale and purchase agreement is a legally Your sale and purchase agreement should
binding contract between you and the other include the following things.
party involved in buying or selling a property.
It sets out all the details, terms and conditions Basic details of the sale
of the sale. This includes things such as • The names of the people buying and selling
the price, any chattels being sold with the the property.
property, whether the buyer needs to sell • The address of the property.
another property first and the settlement date. • The type of title (for example, freehold or
A sale and purchase agreement provides leasehold).
certainty to both the buyer and the seller • The price.
about what will happen when. • Any deposit the buyer must pay.
• Any chattels being sold with the property
(for example, whiteware or curtains).
• Any specific conditions you or the other
party want fulfilled.
Always check your sale and purchase • How many working days you have to fulfil
agreement with a lawyer before signing. your conditions (if there are conditions).
• The settlement date (the date the buyer
pays the rest of the amount for the property,
which is usually also the day they can
move in).
• The rate of interest the buyer must pay on
any overdue payments.
Before you sign a sale and purchase agreement, whether you’re the buyer or the
seller, the agent must give you a copy of this guide. They must also ask you to
confirm in writing that you’ve received it.
RES00016-1907
Page 15 of 60 | REA guide - sale and purchase agreementsGeneral obligations and conditions
you have to comply with
The sale and purchase agreement includes
general obligations and conditions that you
will need to comply with. For example, these
may include:
• access rights – what access the buyer The agent helps the buyer and the
can have to inspect the property before seller to include the conditions they
settlement each want. Even though the agent
works for the seller, they also have
• insurance – to make sure the property
to deal fairly and honestly with
remains insured until the settlement date
the buyer. They can’t withhold any
and outline what will happen if any
information, and they must tell the
damage occurs
buyer about any known defects with
• default by the buyer – the buyer may have to
the property.
compensate the seller if they don’t settle on
time, for example, with interest payments Your agent will probably use the
• default by the seller – the seller may have agreement for sale and purchase
to compensate the buyer if they don’t approved by the Auckland District
settle on time, for example, by paying Law Society and the Real Estate
accommodation costs. Institute of New Zealand.
Your lawyer will explain these clauses to you.
Specific conditions a buyer
may include
Some buyers will present an unconditional • Land Information Memorandum (LIM) –
offer, which means there are no specific provided by the local council, this report
conditions to be fulfilled. Some buyers will provides information about the property
include one or more conditions (that must such as rates, building permits and
be fulfilled by a specified date) in their offer consents, drainage, planning and other
such as: important information
• title search – this is done by the buyer’s • builder’s report – to determine the condition
lawyer to check who the legal owner of the of the building
property is and to see if there are any other • engineer’s or surveyor’s report – similar to
interests over the property such as caveats the above but more focused on the entire
or easements section and the structure of the property
• finance – this refers to the buyer arranging • sale of another home – the buyer may
payment, often requiring a mortgage need to sell their own home in order to
or loan buy another.
• valuation report – a bank may require the
buyer to obtain a valuation of the property
(an estimate of the property’s worth on the
current market) before they agree to a loan
RES00016-1907
Page 16 of 60 | REA guide - sale and purchase agreementsWhat happens
after you sign the
sale and purchase agreement
Signing the sale and purchase agreement is not the end
of the sale or purchase.
Both parties work through the deposit is enough to cover the commission.
conditions until the agreement is The agent cannot ask the buyer to pay for
unconditional their services if they have been hired by the
A conditional agreement means the sale seller.
and purchase agreement has one or
The buyer pays the rest
more conditions that must be met by
a specified date. The buyer pays the remainder of the amount
for the property on the day of settlement,
The buyer pays the deposit. Depending on usually through their lawyer.
what the agreement says, the buyer may pay
the deposit when they sign the agreement Buying a tenanted property
or when the agreement becomes The agreement for sale and purchase may
unconditional. Usually the deposit is held contain a specific date for possession that
in the agency’s trust account for 10 working may differ from the settlement date, for
days before it is released to the seller. instance, where the property is tenanted.
If the property is tenanted, the agreement
An agreement for sale and purchase
for sale and purchase should specify this.
commits you to buy or sell
Once you’ve signed the sale and purchase If the buyer requires the property to be sold
agreement and any conditions set out in it with ‘vacant possession’, it is the seller’s
have been met, you must complete the sale responsibility to give the tenant notice to
or purchase of the property. vacate, in accordance with the tenant’s
legal rights.
Payment of a commission It is recommended that you seek legal advice
Once the sale is complete, the seller pays the if you are buying a property that is currently
agent for their services. The agent or agency tenanted.
usually takes the commission from the
deposit they’re holding in their trust account.
The seller should make sure the
RES00016-1907
Page 17 of 60 | REA guide - sale and purchase agreementsWhat happens if you have a problem
If you’re worried about the behaviour of your
agent, discuss it with them or their manager.
All agencies must have in-house procedures Call us on
for resolving complaints.
0800 367 7322,
If you can’t resolve the issue with the agency email us at
or you don’t feel comfortable discussing it
with them, you can contact the Real Estate
info@rea.govt.nz
Authority (REA).* We can help in a number of or visit us
ways if your complaint is about the behaviour online at
of a real estate agent. For example, we can
rea.govt.nz
help you and the agent or agency to resolve
the issue and remind the agent of their
obligations under the Real Estate Agents Act
2008. When you contact us, we’ll work with
you to help you decide the best thing to do.
* Settled.govt.nz is brought to you by REA.
Where to go for more information
You can get more help and information from various places.
Read more about buying
and selling a property at
settled.govt.nz Your lawyer
Settled.govt.nz provides
Community Law Centres
comprehensive independent communitylaw.org.nz
information and guidance for
home buyers and sellers. Citizens Advice Bureau
cab.org.nz
The New Zealand Residential
Property Agency Agreement Guide Consumer Protection
is also available on settled.govt.nz. (Ministry of Business, Innovation and Employment)
The guide tells you more about consumerprotection.govt.nz
the agreement you sign with the
agent or agency helping to sell
your property.
We welcome any feedback you have on this publication.
The information in this guide was accurate when published.
However, the requirements this information is based on can change
at any time. Up-to-date information is available at rea.govt.nz.
RES00016-1907
Page 18 of 60 | REA guide - sale and purchase agreementsReal Estate Agents Act
(Professional Conduct and
Client Care) Rules 2012
RES00016-1907Contents
1 Title 1
2 Commencement 1
3 Scope and objectives 1
4 Interpretation 1
5 Standards of professional competence 1
6 Standards of professional conduct 1
7 Duty to report misconduct or unsatisfactory conduct 1
8 Duties and obligations of agents 2
9 Client and customer care 2
10 Client and customer care for sellers’ agents 3
11 Client and customer care for buyers’ agents 4
12 Information about complaints 5
13 Revocation 5
Important note
The Real Estate Authority (REA) is the operating name of the Real Estate Agents
Authority (REAA).
Please note that this publication uses the legal name ‘Real Estate Agents Authority
(REAA)’ due to a requirement to maintain consistency with legislation.
Rules
These Rules make up the Real Estate Agents Authority code of professional conduct and client
care. The Rules were made by the Authority and notified in the New Zealand Gazette.1 The rules set
minimum standards of conduct and client care that licensees are required to meet when carrying out
real estate agency work and dealing with clients.
1 Pursuant to section 14 of the Real Estate Agents Act 2008, the Real Estate Agents Authority, with the approval of the Minister of
Justice given in accordance with section 17 of that Act, and after consultation in accordance with section 16 of that Act, makes the
following rules.
RES00016-1907
Page 20 of 60 | REA guide - professional conduct and client care rules1
- prospective client means a person who is
1 Title
considering or intending to enter into an
These rules are the Real Estate Agents Act agency agreement with an agent to carry
(Professional Conduct and Client Care) out real estate agency work.
Rules 2012. - regulations means regulations made
pursuant to the Act.
2 Commencement 4.2 Unless the context otherwise requires,
terms used in these rules have the same
These rules come into force on 8 April 2013. meaning as in the Act.
3 Scope and objectives
5
Standards of professional
competence
3.1 These practice rules setting out a code of
5.1 A licensee must exercise skill, care,
professional conduct and client care have
competence, and diligence at all times when
been prepared by the Real Estate Agents
carrying out real estate agency work.
Authority (the Authority). They constitute
the Professional Conduct and Client Care 5.2 A licensee must have a sound knowledge
Rules required by section 14 of the Real of the Act, regulations, rules issued by the
Estate Agents Act 2008. Authority (including these rules), and other
legislation relevant to real estate agency
3.2 These practice rules set out the standard of
work.
conduct and client care that agents, branch
managers, and salespersons (collectively
referred to as licensees) are required to
meet when carrying out real estate agency
6 Standards of professional conduct
work and dealing with clients. 6.1 A licensee must comply with fiduciary
obligations to the licensee’s client.
3.3 These practice rules are not an exhaustive
statement of the conduct expected of 6.2 A licensee must act in good faith and
licensees. They set minimum standards that deal fairly with all parties engaged in a
licensees must observe and are a reference transaction.
point for discipline. A charge of misconduct
6.3 A licensee must not engage in any conduct
or unsatisfactory conduct may be brought
likely to bring the industry into disrepute.
and dealt with despite the charge not being
based on a breach of any specific rule. 6.4 A licensee must not mislead a customer or
client, nor provide false information, nor
3.4 These practice rules must be read in
withhold information that should by law
conjunction with the Act and regulations,
or in fairness be provided to a customer or
and do not repeat duties and obligations
client.
that are included in the Act or regulations.
Duty to report misconduct
4 Interpretation 7 or unsatisfactory conduct
4.1 In these rules,— 7.1 A licensee who has reasonable grounds
to suspect that another licensee has been
- Act means the Real Estate Agents Act 2008. guilty of unsatisfactory conduct1 may make
- customer means a person who is a party a report to the Authority.
or potential party to a transaction and 7.2 A licensee who has reasonable grounds
excludes a prospective client and a client. to suspect that another licensee has been
1 Unsatisfactory conduct is defined in the Act: see section 72.
RES00016-1907
Page 21 of 60 | REA guide - professional conduct and client care rules2
guilty of misconduct2 must make a report to
the Authority. 9 Client and customer care
7.3 A licensee must not use, or threaten to use, General
the complaints or disciplinary process for 9.1 A licensee must act in the best interests
an improper purpose. of a client and act in accordance with the
7.4 If a licensee learns that a person is client’s instructions unless to do so would
committing an offence by undertaking be contrary to law.
real estate agency work without a licence, 9.2 A licensee must not engage in any conduct
the licensee must immediately report the that would put a prospective client, client,
matter to the Authority. or customer under undue or unfair pressure.
9.3 A licensee must communicate regularly and
Duties and obligations
8 of agents
in a timely manner and keep the client well
informed of matters relevant to the client’s
Promoting awareness of rules interest, unless otherwise instructed by the
client.
8.1 An agent who is operating as a business
must display these rules prominently in 9.4 A licensee must not mislead customers as to
the public area of each office or branch, and the price expectations of the client.
provide access to them on every website
9.5 A licensee must take due care to—
maintained by the agent for the purposes of
the business. (a) ensure the security of land and every
business in respect of which the licensee is
8.2 A licensee must make these rules available
carrying out real estate agency work; and
to any person on request.
(b) avoid risks of damage that may arise from
Supervision and management customers, or clients that are not the owner
of salespersons
of the land or business, accessing the land
8.3 An agent who is operating as a business or business.
must ensure that all salespersons employed
or engaged by the agent are properly 9.6 Unless authorised by a client, through an
supervised and managed.3 agency agreement, a licensee must not offer
or market any land or business, including by
Ensuring knowledge of regulatory putting details on any website or by placing
framework and promoting continuing a sign on the property.
education
8.4 An agent who is operating as a business Agency agreements and
must ensure that all licensees employed contractual documents
or engaged by the agent have a sound 9.7 Before a prospective client, client, or
knowledge of the Act, regulations, rules customer signs an agency agreement, a
issued by the Authority (including these sale and purchase agreement, or other
rules), and other legislation relevant to real contractual document, a licensee must—
estate agency work. (a) recommend that the person seek legal
8.5 An agent who is operating as a business advice; and
must ensure that licensees employed or (b) ensure that the person is aware that he or
engaged by the agent are aware of and she can, and may need to, seek technical or
have the opportunity to undertake any other advice and information; and
continuing education required by the
Authority. (c) allow that person a reasonable opportunity
to obtain the advice referred to in
paragraphs (a) and (b).
2 Misconduct is defined in the Act: see section 73.
3 The Act defines what is meant by a salesperson being properly supervised and managed by an agent or a branch manager for the
purposes of section 50 of the Act: see section 50(2).
RES00016-1907
Page 22 of 60 | REA guide - professional conduct and client care rules3
9.8 A licensee must not take advantage of a 9.17 A licensee must not disclose confidential
prospective client’s, client’s, or customer’s personal information relating to a client
inability to understand relevant documents unless—
where such inability is reasonably apparent.
(a) the client consents in writing; or
9.9 A licensee must not submit an agency
(b) disclosure is necessary to answer or
agreement or a sale and purchase agreement
defend any complaint, claim, allegation,
or other contractual document to any
or proceedings against the licensee by the
person for signature unless all material
client; or
particulars have been inserted into or
attached to the document. (c) the licensee is required by law to disclose
the information; or
9.10 A licensee must explain to a prospective
client that if he or she enters into or (d) the disclosure is consistent with the
has already entered into other agency information privacy principles in section 6
agreements, he or she could be liable to pay of the Privacy Act 1993.
full commission to more than 1 agent in the
9.18 Where a licensee discloses information
event that a transaction is concluded.
under rule 9.17(b), (c) or (d), it may be only
9.11 On notice of cancellation of an agency to the appropriate person or entity and only
agreement being given or received by the to the extent necessary for the permitted
agent under the agreement, the agent must purpose.
advise the client, in writing, of the name of
each customer (if any) in respect of whom
Client and customer care
the agent would claim a commission, were 10 for sellers’ agents
the customer to conclude a transaction with
10.1 This rule applies to an agent (and any
the client.
licensee employed or engaged by the agent)
9.12 An agent must not impose conditions on who is entering, or has entered, into an
a client through an agency agreement that agency agreement with a client for the
are not reasonably necessary to protect the grant, sale, or other disposal of land or a
interests of the agent. business.
9.13 When authorised by a client to incur
Appraisals and pricing
expenses, a licensee must seek to obtain the
10.2 An appraisal of land or a business must—
best value for the client.
(a) be provided in writing to a client by a
Conflicts of interest licensee; and
9.14 A licensee must not act in a capacity that
would attract more than 1 commission in (b) realistically reflect current market
the same transaction. conditions; and
9.15 A licensee must not engage in business or
(c) be supported by comparable information on
professional activity other than real estate sales of similar land in similar locations or
agency work where the business or activity businesses.
would, or could reasonably be expected to, 10.3 Where no directly comparable or semi-
compromise the discharge of the licensee’s comparable sales data exists, a licensee
obligations. must explain this, in writing, to a client.
Confidentiality 10.4 An advertised price must clearly reflect the
9.16 A licensee must not use information that is pricing expectations agreed with the client.
confidential to a client for the benefit of any
other person or of the licensee.
RES00016-1907
Page 23 of 60 | REA guide - professional conduct and client care rules4
Relationship between prospective client’s (b) ensure that a customer is informed of
choices about how to sell and licensee’s any significant potential risk so that the
benefits customer can seek expert advice if the
10.5 Before a prospective client signs an agency customer so chooses.
agreement, the licensee must explain to 10.8 A licensee must not continue to act for a
the prospective client how choices that the client who directs that information of the
prospective client may make about how to type referred to in rule 10.7 be withheld.
sell or otherwise dispose of his or her land
or business could impact on the individual Advertising and marketing
benefits that the licensee may receive. 10.9 A licensee must not advertise any land or
business on terms that are different from
Agency agreements
those authorised by the client.
10.6 Before a prospective client signs an agency
agreement, a licensee must explain to the Contractual documentation and
prospective client and set out in writing— record keeping
10.10 A licensee must submit to the client all
(a) the conditions under which commission
offers concerning the grant, sale, or other
must be paid and how commission is
disposal of any land or business, provided
calculated, including an estimated cost
that such offers are in writing.
(actual $ amount) of commission payable by
the client, based on the appraisal provided 10.11 If a licensee is employed or engaged by an
under rule 10.2: agent, the licensee must provide the agent
with a copy of every written offer that the
(b) when the agency agreement ends;
licensee submits.
(c) how the land or business will be marketed
10.12 An agent must retain, for a period of 12
and advertised, including any additional
months, a copy of every written offer
expenses that such advertising and
submitted. This rule applies regardless of
marketing will incur:
whether the offer was submitted by the
(d) that the client is not obliged to agree to agent or by a licensee employed or engaged
the additional expenses referred to in rule by the agent and regardless of whether the
10.6(c): offer resulted in a transaction.
(e) that further information on agency
agreements and contractual documents is Client and customer care for
available from the Authority and how to 11 buyers’ agents
access this information. 11.1 This rule applies where an agency
agreement authorising an agent to
Disclosure of defects
undertake real estate agency work for a
10.7 A licensee is not required to discover
client in respect of the purchase or other
hidden or underlying defects in land but
acquisition of land or a business on the
must disclose known defects to a customer.
client’s behalf (a buyer’s agency agreement)
Where it would appear likely to a reasonably
is being entered into, or has been entered
competent licensee that land may be subject
into.
to hidden or underlying defects4, a licensee
must either— 11.2 Before a prospective client signs a buyer’s
agency agreement, a licensee must explain
(a) obtain confirmation from the client,
to the prospective client and set out in
supported by evidence or expert advice, that
writing —
the land in question is not subject to defect;
or
4 For example, houses built within a particular period of time, and of particular materials, are or may be at risk of weathertightness
problems. A licensee could reasonably be expected to know of this risk (whether or not a seller directly discloses any
weathertightness problems). While a customer is expected to inquire into risks regarding a property and to undertake the necessary
inspections and seek advice, the licensee must not simply rely on caveat emptor. This example is provided by way of guidance only
and does not limit the range of issues to be taken into account under rule 10.7.
RES00016-1907
Page 24 of 60 | REA guide - professional conduct and client care rules5
(a) the conditions under which commission
must be paid and how commission is 12 Information about complaints
calculated, including an estimated cost 12.1 An agent must develop and maintain
(actual $ amount) of commission payable written in-house procedures for dealing
by the client, based on the average of with complaints and dispute resolution.
the estimated price range of the land A copy of these procedures must be
or business that the client is seeking to available to clients and consumers.
purchase:
12.2 A licensee must ensure that prospective
(b) when the agency agreement ends: clients and customers are aware of these
(c) any additional services that the licensee will procedures before they enter into any
provide, or arrange for the provision of, on contractual agreements.
the client’s behalf and the expenses relating 12.3 A licensee must also ensure that prospective
to those services payable by the client: clients, clients, and customers are aware
(d) that the client is not obliged to agree to that they may access the Authority’s
the additional expenses referred to in rule complaints process without first using the
11.2(c): in-house procedures; and that any use of the
in-house procedures does not preclude their
(e) that further information on agency
making a complaint to the Authority.
agreements and contractual documents is
available from the Authority and how to 12.4 A licensee employed or engaged by an agent
access this information. must advise the agent within 10 working
days of becoming aware of—
11.3 A licensee must not undertake real estate
agency work with customers, or other (a) any complaint made to the Authority
licensees, on terms that are different from against them, the decision of the
those that are authorised by the client on Complaints Assessment Committee made
whose behalf the licensee is carrying out in respect of that complaint, and any order
real estate agency work. made by the Committee in respect of that
complaint; and
11.4 A licensee must submit all offers that the
licensee is instructed by the client to make (b) if the matter proceeds to the Tribunal, the
concerning the purchase or acquisition of decision of the Tribunal in respect of the
any land or business, provided that such matter, and any order made by the Tribunal
offers are in writing. in respect of the matter.
11.5 If a licensee is employed or engaged by an 12.5 If a licensee was employed or engaged by a
agent, the licensee must provide the agent different agent at the time of the conduct
with a copy of every written offer that the relevant to the complaint referred to in
licensee submits. rule 12.4, the licensee must also provide the
information referred to in rule 12.4(a) and
11.6 An agent must retain, for a period of 12
(b) to that agent within 10 working days of
months, a copy of every written offer
becoming aware of the complaint.
submitted. This rule applies regardless of
whether the offer was submitted by the
agent or by a licensee employed or engaged 13 Revocation
by the agent and regardless of whether the
offer resulted in a transaction. The Real Estate Agents Act (Professional
Conduct and Client Care) Rules 2009 (SR
2009/304) are revoked.
Issued under the authority of the Acts and Regulations Publication Act 1989. Date of notification in
Gazette: 13 December 2012. These rules are administered by the Real Estate Agents Authority.
RES00016-1907
Page 25 of 60 | REA guide - professional conduct and client care rulesPO Box 25 371, Featherston Street,
Wellington 6146, New Zealand
Phone 0800 367 7322 or (04) 471 8930
Email info@rea.govt.nz
rea.govt.nz
The information in this document
is reproduced f rom the Real Estate
Agents Act (Professional Conduct
and Client Care) Rules 2012, and
this document is accurate as at the
time of publication. Subsequent
amendments to these Rules may
not be incorporated in this version
of this document, but can be found
at legislation.govt.nz.
RES00016-1907
Page 26 of 60 | REA guide - professional conduct and client care rulesComplaints
Real Estate Agents Act (Professional Conduct and Client Care)
Rules 2012 - Rule 12
Initial complaint:
Written complaint Acknowledgment Complaint referred to
Received by the complaints Complaints manager to acknowledge receipt branch manager
manager. of written complaint and advise that the Complaint in written form
matter will be addressed in the first instance forwarded to branch manager.
by the branch manager.
Branch manager to respond Branch manager to Branch manager acknowledgment
Branch manager to review investigate Branch manager to acknowledge receipt of
process and send formal Branch manager to obtain complaint and advise that formal response
response with comment and written report from salesperson. will be provided within five working days.
conclusion to complainant.
Branch manager to file
Branch manager to send copy of response and supporting file documentation to Support Centre complaints manager for file.
For complaints responded to by the branch manager but which do not satisfy the complainant:
Escalate complaint Acknowledgment Agency level review
Escalate complaint in writing Complaints manager to acknowledge receipt Complaints manager -
to complaints manager. of complaint and advise that the matter will residential sales to review file
be reviewed from an agency perspective and branch manager’s response
and a response provided within 10 working (seek additional information if
days. required).
Agency level response
Complaints manager to provide formal written response from an agency perspective and advise that the process does not preclude
the matter from being referred to the Real Estate Authority or the Tenancy Advice Helpline (property management issues).
Recording
Issue to be recorded in complaints register; documentation to be held on file.
Note:
This process does not preclude the matter from being referred to the Real Estate Authority. The Authority may be
contacted at: The Real Estate Authority. c/- PO Box 23-063, Wellington 6164, New Zealand. rea.govt.nz
RES00016-2006
Page 27 of 60 | Barfoot & Thompson complaints process barfoot.co.nzEnd of this section.
Privacy Policy
Our Privacy Policy is designed to assist you in understanding how
we collect and use the personal information you provide to us and to
assist you in making informed decisions when using our website, social
media channels and/or application and our products and services.
Barfoot & Thompson Limited (NZCN 75655) of Level What information do we collect?
7, 34 Shortland Street, CBD, Auckland ('Barfoot &
When you visit our website or access, interact with or
Thompson', 'we', 'us', 'our') is committed to protecting
follow our social media channels or use our application
your privacy. Should we ask you to provide certain
you may provide us with different types of information:
information by which you can be identified when
using this website, our social media channels and our – Personally identifiable information you knowingly
application, you can be assured that it will only be choose to disclose that is collected on an individual
used in accordance with the Privacy Act 1993 and this basis.
privacy statement. – Anonymised website and application use
Please read this Privacy Policy before using the information collected on an aggregate basis as you
website, our social media channels or our application and others browse or interact with our website or
and submitting any personal information to us. By our social media channels and use our application.
accessing or using the website, our social media Personally identifiable information you
channels or application, you are accepting the
choose to provide
practices described in this Privacy Policy.
Registration information
You will be asked to provide us with information about
yourself, your firm or company, when you register for
The privacy practices set forth in this Privacy
certain services, such as email newsletters and alerts
Policy are for our website, our social media
or to save properties of interest to you on the website
channels and application only. If you click
or our app. You may also provide additional comments
on links to other websites, please review on how you see Barfoot & Thompson servicing
the privacy policies posted at those sites. In your needs and interests. You can unsubscribe to
addition, your access and use of the social newsletters and alerts at any time.
media platforms that we use (including,
Email information
Facebook, Youtube, LinkedIn, Pinterest
and Twitter) will be subject to the terms If you choose to correspond with us through email,
we may retain the content of your email messages
and conditions and privacy policies of the
together with your email address and our responses.
companies that operate those platforms.
RES00016-2006
Page 29 of 60 | Barfoot & Thompson privacy policy barfoot.co.nzAnonymous website and app use Social media information
information When you follow or like our social media channels or
like, comment on, share or otherwise interact with
We may use cookie and tracking technology depending
any of posts or other content on our social media
on the features offered. Cookie and tracking
channels, you may provide information to us about
technologies are used for gathering information such
yourself, including your name, profile information and
as browser type and operating system, tracking the
profile picture. The information that you make available
number of visitors to the website, and understanding
can often be controlled through the settings for your
how visitors use the website. Cookies also help us to
account on the relevant social media platform.
customise the website for visitors.
Our social media channels are public and everything
We use Google Analytics features that associate
you share on our posts can be seen by everyone else.
anonymous data from the Google accounts of signed-
Please do not share any personal, confidential or
in users who have consented to this association for the
sensitive information when posting on any of our social
purposes of personalised advertising.
media channels.
Aggregate cookie and tracking information may be
shared with third parties. What we do with the information
– Third party vendors, including Google and
we gather
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purposes, to understand your needs and provide you
– Third party vendors, including Google and
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Facebook, may use cookies on our website to serve
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ads on other sites on the internet based on a user’s
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using Facebook’s ad settings (facebook.com/ads/ – We may periodically send promotional email about
settings). new products, special offers or other information
– Google account holders may view and control their which we think you may find interesting using the
activity by visiting their My Activity page. email address which you have provided.
Where you agree to allow the app to access your – From time to time, we may also use your
location on a mobile device, we may use that information to contact you for market research
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give you more relevant search results. Your location or mail.
information is used only by the app in real time and is – We may use the information to customise the
not stored by us. website and/or app according to matters such as
your interests or location.
Personal information cannot be collected via cookies
and other tracking technology, however, if you provide – We may use the information to let you know about
personally identifiable information, cookies and the new products, special offers or other information
data that they and other tracking technology collect which we think you may find interesting.
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RES00016-2006
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