Ministry of Justice

Appeal / ruling on whether Committee correct not to refer compensation / Committee found licensee guilty of unsatisfactory conduct for completing GST schedules in sale and purchase agreement without complainant’s knowledge / Real Estate Agents Act 2008, s931f, s931ha, s1106 / HELD / Committee made error of law in describing threshold for referral as “more than mid-level” and approaching high level conduct / statutory threshold is “more than minor or technical breach” / Committee found mid-level unsatisfactory conduct, so threshold was met / Committee has no power to assess merits of compensation / complainant not required to establish case for compensation before Committee / “any substantive matter” in s1106b refers to Committee’s findings in determining unsatisfactory conduct that is more than minor or technical / findings on evidence and causation in relation to compensation not binding on Tribunal as they were outside Committee’s jurisdiction / appellant to file compensation claim

Application to review Registrar’s determination / Registrar determined not to pursue complaint as it only disclosed inconsequential matter / parties filed joint memorandum inviting Tribunal to reverse Registrar’s decision by consent, so Registrar may refer matter to Committee / Real Estate Agents Act 2008, s743a / HELD / application granted, Registrar’s decision reversed

Applications to review Registrar’s determination and for leave to adduce new evidence / Registrar determined not to pursue complaint as it only disclosed inconsequential matter / Real Estate Agents Act 2008, s743a, s112, s136 / Professional Rules 2012, r6.4, r10.7 / Kacem v Bashir [2010] NZSC 112 / Wilson v Registrar of the Real Estate Agents Authority [2023] NZREADT 2 / HELD / fresh, credible and cogent test for new evidence appropriate for s112 reviews, but should only be applied in context of limited grounds of review in Kacem / applicant had plenty of opportunity to provide evidence to Registrar / evidence credible but not sufficiently cogent to prove Registrar’s decision was wrong / Registrar has discretion to decide if complaint has sufficient evidence or would justify disciplinary response / Registrar not required to conduct investigation / has considered all the evidence provided by parties / no error of fact or law / applications dismissed, Registrar’s decision confirmed

Application to lift non-publication orders and for permission to publish submissions and evidence / cross application for extension of non-publication orders / Tribunal made non-publication order prohibiting publication of purchaser, auctioneer and any third party’s name / appellant subsequently requested a revocation of that order / appellant also requested permission to publish submissions, evidence, witness statements, transcripts, recordings and correspondence / respondent cross-applied to extend non-publication order to cover all evidence and submissions / Real Estate Agents Act 2008, s108 / HELD / Tribunal expressly empowered to revoke existing non-publication order but not to modify it / once decision is published, request for further orders would involve recall of earlier decisions / no miscarriage of justice or other exceptional circumstance established / Tribunal functus officio in relation to publication / appellant and respondent’s requests declined

Liability and penalty / misconduct / licensee charged under s73a for kissing client without consent / Real Estate Agents Act 2008, s3, s73a, s108, s110, s110A / HELD / licensee pled guilty / first appearance before Tribunal / conduct was at high level of misconduct / fell squarely within the concept of disgraceful conduct / conduct was non-consensual and invasive of client’s personal autonomy / went significantly beyond that in Complaints Assessment Committee 1904 v Bright [2022] NZREADT 23 / caused significant impact on client / licensee wrote apology letters to client and Tribunal / acted dishonestly during Committee investigation by advancing false alibi, but subsequently accepted full responsibility / costs reduced due to financial position / permanent name suppression appropriate given clean record, importance of rehabilitation and potential significant impact of publication on licensee’s health / censured / ordered to pay $7,500 financial penalty / 20 per cent costs ($4,422.40)

Penalty / misconduct / licensee found guilty under s73a (disgraceful conduct) for producing false valuation report four times in respect of property he was seeking to acquire an interest in / Real Estate Agents Act 2008, s3, s73, s110, s110A / HELD / licensee forged report for own benefit to proceed with purchase, but no financial benefit gained / dishonesty at higher end of misconduct / honesty essential to achieving purpose of Act / clean record given little weight due to licensee’s short career / expressed remorse in email to Authority, but false reasons given for wrongdoing and lack of engagement with Tribunal show expression is not sincere / no apology or explanation / no confidence licensee learned from complaint / s1102e order necessary to protect public / five year prohibition period appropriate given the conduct was an isolated incident and there was no financial benefit / censured / prohibited from engagement for five years / 50 per cent costs ($14,496.44)

Costs application by licensee / Committee unsuccessful in pursuing misconduct charges / Real Estate Agents Act 2008, s110A / Complaints Assessment Committee 2106 v Mather [2021] NZREADT 54 / HELD / statutory factors justifying costs award not present / no rule that costs follow the event / requires something more than mere failure of prosecution or successful defence / prosecution’s evidence not inherently unreliable or so lacking in credibility that there was insufficient basis to proceed with charges / Committee pursued charges in response to Tribunal’s direction to consider doing so / no fault in Committee giving weight to Tribunal’s view / costs may have been awarded to Committee if successful, but no principle of reciprocity for costs / factor favouring costs for successful prosecution is performance of public regulatory duty, which does not favour successful licensees / long history of proceedings does not justify costs in licensee’s favour / application dismissed

Appeal / licensee failed to disclose prior burglaries and ownership of property in writing / Committee found unsatisfactory conduct / purchasers claim compensation for expenses incurred in securing property / licensee challenges costs award / Real Estate Agents Act 2008, s931f, s111, s136 / Professional Rules 2012, r6.4 / HELD / new compensation provisions of Act do not apply as conduct occurred prior to new provisions taking effect / Committee cannot award broad compensation under guise of relief from rectification / tortious measure of damages applicable, rather than expectation damages / purchasers’ claim for compensation failed due to lack of valuation evidence and as expense of securing property not causally connected to licensee’s conduct / costs challenge failed as licensee withdrew appeal against penalty, purchasers’ appeals of Committee’s liability and penalty decisions not hopeless, and no legal basis to stay costs award / appeal dismissed, Committee’s decision confirmed

Application to review Registrar’s determination / Registrar declined licensee’s application to defer completion of required continuing education / Real Estate Agents Act 2008, s54, s55, s112 / Real Estate Agents (Continuing Professional Development Rules) Notice 2018 / HELD / licensee failed to comply with CPD obligations / Registrar correctly followed statutory process in sending required communications to licensee / required communications were received by licensee / licensee’s application for deferral to Registrar made no reference to new information submitted before Tribunal / Registrar made no error of fact or law in its decision to decline licensee’s application for deferral / licensee unable to show that exceptional circumstances prevented her from completing required CPD / application dismissed, Registrar’s decision confirmed

Appeal / licensee misrepresented number of bedrooms in property / Committee found unsatisfactory conduct / complainant brought appeal out of time / Real Estate Agents Act 2008, s111 / Catley v Real Estate Agents Authority [2019] NZREADT 57 / Beckett v Real Estate Agents Authority [2019] NZREADT 58 / HELD / complainant sought discussion with lawyer about possible claim in Disputes Tribunal / did not seek advice about appeal to this Tribunal / appeal filed 15 working days late / not a short delay / complainant informed of appeal rights in Committee’s decisions / research about appeal rights could have been done earlier / could have contacted Authority or Tribunal about appeal rights / high threshold for acceptance of late appeal not met / no exceptional circumstances / appeal not accepted

Penalty / unsatisfactory conduct / licensee found guilty under s72a (conduct falling short of expected standard) for miscommunication leaving prospective purchaser to understand he was asked to lie about reason for withdrawing offer / Real Estate Agents Act 2008, s3, s72, s110, s110A / HELD / low level of unsatisfactory conduct / licensee’s communication was garbled / no deceit involved / licensee cannot rely on clean record due to prior finding of unsatisfactory conduct / costs principles in TSM applicable to unsatisfactory conduct cases / orthodox position of 50 per cent costs can be displaced particularly where Committee failed on all charges and unsatisfactory conduct was not advanced by Committee but found by Tribunal / licensee admitted underlying facts early in case and admitted unsatisfactory conduct prior to hearing / no factors in s110A indicate costs should be awarded against licensee / censured / ordered to pay $2,000 financial penalty / no costs order made

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 / HELD / licensee did not file submissions / not disputed that licensee was required to complete CPD by certain date, received required communications from Registrar, and 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

Liability / misconduct / licensee found guilty of unsatisfactory conduct for giving false answer to question about safety of property and area / whether misconduct charges should be brought referred back to Committee / now charged under s73a or s73b / Real Estate Agents Act 2008, s4, s72, s73 / Professional Rules 2012, r6.4 / HELD / vendor licensee arranging and meeting purchasers on site meets definition of real estate agency work as property was marketed by licensee’s agency / carried out work normally performed by agent and not vendor / vendor conducting services on own behalf complies with definition / licensee asked if property and area was good, not if it was safe / purchasers’ evidence not credible / licensee not deliberately untruthful as previous burglaries not at top of her mind in answering question if area was good / negligently withheld information which should have been provided but was not disgraceful or seriously incompetent or negligent / charges dismissed