Ministry of Justice

Application to review Registrar’s determination not to pursue complaint as it only disclosed inconsequential matters / complaint alleged licensee who acted for mortgagee sold property in mortgagee sale significantly below market value, failing to conduct open homes or property marketing / complaint licensee did not provide notice of transaction to tenant prior to settlement / Real Estate Agents Act 2008, s743a, s112 / Professional Conduct and Care Rules 2012, r9.1 / HELD / significant discrepancy between valuation and alleged sale price not itself evidence of wrongdoing / no evidence to support allegation there was no open home nor proper marketing / licensee’s client was the mortgagee, not the mortgagor / licensee required to act in the best interests of mortgagee unless that would be contrary to law / no evidence from mortgagee supporting complaint / no credible evidence supporting wrongdoing / no error or fact or law / application dismissed / Registrar’s decision confirmed

Application to review Registrar’s determination / Registrar cancelled licence as licensee failed to complete required continuing education / Real Estate Agents Act 2008, s54d, s55, s112 / Real Estate Agents (Continuing Professional Development Rules) Notice 2018, cl17 / HELD / licensee did not complete CPD by deadline / Registrar correctly followed statutory process / Registrar must cancel licence as required by s54d / no error of fact or law / application dismissed / Registrar’s decision confirmed

Application to review Registrar’s determination not to pursue complaint as it only disclosed inconsequential matters / complaint licensee misled purchaser as to compliance with Healthy Home standards / licensee allegedly failed to disclose known defects and provide relevant Healthy Home documentation / Real Estate Agents Act 2008, s72, s73, s743a, s112 / HELD / no evidence to support allegations of misrepresentation by the licensee / no evidence of licensee making statement concerning property’s compliance with Healthy Homes standards / licensee reviewed information provided by council and visited property prior to passing vendor disclosure document to applicant / report concluded property was in tidy condition with no apparent structural or moisture ingress concerns / no evidence licensee failed to provide all Healthy Homes documentation at time of transaction / no error or fact or law / application dismissed / Registrar’s decision confirmed

Application to review Registrar’s determination / Registrar cancelled licence as licensee failed to pay annual fee for keeping licence suspended / Real Estate Agents Act 2008, s54h, s55, s112 / HELD / licensee was required to pay suspension fee by certain date, received required communications from Registrar, and did not make payment by deadline / Registrar correctly followed statutory process / Registrar must cancel licence as required by s54h / no error of fact or law / application dismissed, Registrar’s decision confirmed

Appeal / commercial lessee later found description of leased area size in advertising and agreement was incorrect / Committee did not inquire into complaint as it was inconsequential / incorrect advertising deemed technical breach with no material impact / Real Estate Agents 2008, s41, s72, s73, s792b, s111 / Professional Rules 2012, r5.1, r6.4 / HELD / allegations relating to property management generally not “real estate agency work” / unsubstantiated complaints could not amount to misconduct / however, licensee’s actions concerning procurement of lease “real estate agency work” / employment status immaterial / acted for “another person” / Committee failed to consider whether capable of misleading lessee and whether conduct lacked skill, care and diligence / delayed formal complaint - overlooked earlier complaint directly to licensee / inappropriately considered unsuccessful civil claim / decision reversed / Committee directed to inquire into complaint about area of premises

Appeal / sale of residential property following breakdown of marriage / appellant alleged that respondent licensees knew about personal circumstances and colluded to effect sale and did not act in best interests by failing to discuss open market advertisement, that no CMA or appraisal was provided / Committee joined director of agency to proceedings per allegation of improper supervision / Real Estate Agents 2008, s89, s111 / Professional Conduct and Client Care Rules 2012, r6.1, r6.2, r.6.4, r9.1, r9.2, r9.16, r10.1, r10.2 / HELD / appellant’s suggestion he was never provided a copy of CMA unsupported by evidence / CMA arrived at using due care, skill, expertise and judgement with reference to comparable sales information / subsequent sale of property at significantly higher price did not indicate deficiency in CMA / no evidence of undue or unfair pressure / joined respondent was not designated supervisor / no error of fact or law / Committee’s decision affirmed / appeal dismissed

Compensation referral / unsatisfactory conduct / Committee found licensee misrepresented extent of utility connections and failed to disclose geotechnical report to complainant purchasers / Real Estate Agents Act 2008, s72a, s93, s110 / Professional Rules 2012, r5.1, r6.4 / Fair Trading Act 1986, s43 / HELD / principles developed for award of loss or damage under FTA relevant to discretion to award compensation / broad and pragmatic approach taken to determine causal connection between losses claimed and contravening conduct / not open for Tribunal to review finding of unsatisfactory conduct in lieu of appeal to challenge determination / agency’s commission, vendor’s legal costs, complainants’ legal costs and LIM report fees attributable losses to unsatisfactory conduct / claim for loss of growth in property market unsubstantiated / compensation sum to achieve justice to parties / licensee acted in good faith though carelessly / licensees ordered to pay $34,437.38

Appeal / licensee sent pre-signed agency agreement for a sale to mentally unwell tenant of property, expecting it to be passed to co-owners / Real Estate Agents Act 2008, s4, s50, s111 / Professional Conduct and Client Care Rules 2012, r5.1, r8.3, r9.9, r10.2, r10.6 / HELD / Committee erred in finding no “real estate work” / licensee sent agency agreement and undertook multiple steps for the purpose of bringing about a sale, seeking involvement of co-owners, through tenant / “other person” taken to be either tenant or co-owners, thus “real estate work” / licensee sent pre-signed agency agreement and appraisal to tenant without undertaking pre-contractual required work  / however, dealings ended early in pre-listing process and occurred in context of persistence by unwell tenant / threshold for disciplinary response not met / similarly, disciplinary response not justified for manager’s lack of supervision / use of pre-signed agreements and appraisals cautioned against / appeal dismissed

Application to strike out compensation referral proceedings / Committee found licensee engaged in unsatisfactory conduct in failing to bring complainant’s attention to altered clause, as well as in failing to disclose in writing that he may financially benefit from transaction and to obtain signed acknowledgement / licensee applied to strike out proceedings as parallel civil proceedings had been decided by District Court / Real Estate Agents Act 2008, s109A, s110, s136 / Professional Rules 2012, r5.1, r6.2, r6.3 / HELD / Tribunal noted distinction between legal rights in parallel civil District Court proceedings and present disciplinary proceedings / claim before Tribunal whether complainant should be awarded for any loss suffered by reason of the licensee’s unsatisfactory conduct, rather than breach of contract / nature and extent of claimed losses unclear / relevance of res judicata and issue estoppel to considered in due course / strike-out application dismissed

Application to review Registrar’s determination not to pursue complaint as it only disclosed inconsequential matters / complaint tender process was unfair and not transparent to complainant & that licensees misled vendor to advantage offer from listing agent’s client / Real Estate Agents Act 2008, s743a, s107A, s112 / HELD / no obligation to disclose (without vendor’s instructions) vendor would not accept, and had previously rejected, vendor finance condition / was vendor’s decision to bring forward tender deadline / no evidence licensees brought forward deadline themselves or acted contrary to vendor’s interests / no evidence vendors not aware of complainant’s interest in property / vendors not obliged to give complainant more time to improve offer / licensees not required to disclose information about previous offers (unless instructed by vendors) / licensees kept complainant informed to extent necessary / application dismissed / Registrar’s decision confirmed 

Costs / first compensation referral decision / Tribunal awarded compensation to complainant in the sum of $35,101.65 / parties invited to file submissions on costs / Real Estate Agents Act 2008, s931ha, s1104, s1105, s1106, s110A / HELD / Tribunal’s approach to costs awards differs from civil court proceedings / under s110A, Tribunal to consider whether and to extent any party has participated in good faith, facilitated or obstructed information gathering, and facilitated the resolution of issues / approach to compensation referral prioritises access to justice and would not wish to deter complainants from seeking compensation due to potential costs exposure / no adverse factors indicating costs should be awarded in favour of either party / licensees generally cooperative throughout / costs to lie where they fall

Application to review Registrar’s determination / Registrar cancelled licence as licensee failed to pay annual fee for keeping licence suspended / Real Estate Agents Act 2008, s54h, s55, s112 / HELD / licensee was required to pay suspension fee by certain date, received required communications from Registrar, and did not make payment by deadline / applicant’s misunderstanding as to second annual fee payment caused by erroneous assumption / Registrar correctly followed statutory process / Registrar must cancel licence as required by s54h / no error of fact or law / application dismissed, Registrar’s decision confirmed

Compensation referral / Committee found licensee one failed to ensure property was sold as a going concern and include vendor’s GST registration in sale and purchase agreement (ASP) and licensee two failed to supervise / Real Estate Agents Act 2008, s110, s1105 / Professional Rules 2012, r5.1, r5.2, r8.3, r8.4, r9.8, r9.9 / KD v Donaldson [2023] NZREADT 12 / HELD / first compensation referral decision / Tribunal may have regard to principles from its compensation jurisdiction under s1102g / must apply, and must not overturn, Committee’s determination of any substantive matter in the case / no jurisdiction to award interest under Interest on Money Claims Act 2016 / satisfied loss caused by licensee’s unsatisfactory conduct / commission repayment by licensee should be taken into account as it offset vendor’s losses / 15 per cent reduction for vendor’s failure to mitigate loss by signing ASP  and not seeking legal advice / licensees ordered to pay $35,1011.65