Address to the launch of the Real Estate Agents Authority
I’m delighted to be here today for the launch of the Real Estate Agents Authority.
Today, the Real Estate Agents Act 2008 comes into force. Today, substantial change is being brought about for the real estate industry and home-buyers alike.
The creation of this authority, this new body, will bring benefits for so many Kiwis.
In New Zealand, home ownership is an aspiration for just about all of us. We place huge value in owning our own patch of bricks and mortar and – if we’re lucky enough, in this day and age – our own quarter-acre section.
Property speculation – who’s buying, who’s selling, who’s subdividing – is one of the main topics of conversation at just about any pot-luck dinner in this country, as I’m sure you’ll all know first-hand! The point is, we’re into property in a big way in this country. Buckets, buying, selling, who’s subdividing, leasing.
But the interesting thing is, buying or selling a home is such a complex and confusing process. Not to mention, it’s riddled with legal jargon the whole way through. The sheer volume of information you have to take in, in order to make a decision, is just mind-boggling.
And a lot of New Zealanders find themselves floundering.
We invest our homes with a lot of hope. When most of us buy a home, we’re thinking of creating a haven. A place to share with husbands, wives, or partners; a place to raise kids. Or we’re thinking of the future – of financial security through a rental property, something to see us into retirement.
At some point during the house-buying process, many Kiwis ask themselves, ‘am I making the right choice?’ ‘What if something goes wrong?’
Until today, it was pretty hard for home-buyers to find a one-stop shop where they could find the answers to those questions.
The vast majority of us don’t have law degrees – so we need plain-language advice, information and reassurance. When we’re making such a big investment, we deserve to be well-informed, and we deserve impartial advice.
That’s what this new authority is about. It’s going to protect home buyers and sellers, while also boosting our confidence in the work of real estate agents.
For example – and I think this is really practical - the authority will provide home buyers with easy-to-understand guides on contractual agreements. The most important aspect of the guides is the fact they must be provided to prospective home-buyers before they actually sign contracts, so when they do put pen to paper, they’ll be armed with the knowledge they need.
The authority will also have a lot of handy information on its website, covering things like auctions and tender processes.
The authority will work with real estate agents to make sure they understand their obligations, too. All licensed real estate agents will have to meet high standards set by the authority’s Code of Professional Conduct and Client Care.
This is about trying to get everyone on the same page. We want to see all home buyers accorded high standards of service and advice. And we want those standards set across the board.
This means if things go pear-shaped, the public has an independent body which can help out and deal with their problem.
The public will also be able to check out a register of licensed real estate agents to see if they person they’re dealing with is properly licensed. They can also find out if a particular agent has gone through any disciplinary action in the previous three years.
Setting up the authority creates a two-way street for the public and real estate agents alike. Agents across the country get a fair and clear idea of what’s expected of them. For too long, I believe, those expectations have been inconsistent.
A streamlined and transparent complaint process for home buyers means problems will be quickly dealt with, letting agents move on with their lives and careers.
In order to achieve the goals of both the Real Estate Agents’ Authority and the Real Estate Agents’ Disciplinary Tribunal, it was vital to get the Ministerial appointments right.
By ‘right’, I mean making sure there’s the right mix of representation. It also means putting together people who’ll create an impartial and credible group.
There was a high level of interest in the appointed positions on the Authority Board. Thirty-five expressions of interest were received for the position of chairperson of the Authority, and an astounding 206 for the member positions.
I reckon this shows there’s a real willingness for people to get actively involved in bringing about reform to the industry and contributing to the general good of the profession.
It’s challenging work to establish a new agency and I commend Kristy and her Board for the volume of work they’ve had to get through over the past four months.
As a group, you have a fine balance of experience across a range of disciplines – I know it gives the authority a solid foundation.
It is exciting to be here on the first day of the authority’s existence. I wish you, madam Chair, and the Chief Executive and staff of the authority, all the best for the future. I am confident this new body will make a real and positive difference to the real estate industry and to ordinary Kiwis who are taking part in that most Kiwi of traditions - buying or selling a house.
Thank you