Summary of Submissions - Real Estate Agents Authority

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the commission depending on the method of sale being conducted (e.g. auction vs tender). 61 Of those submitters that commented on this question, six were opposed, three considered it an appropriate change with one other submitter suggesting that this would only be relevant for salesperson licensees. Rule Eleven: Information about complaints 62 The consultation document included a proposal to modify rule 11.1 (formerly rule 10.1) to ensure that in-house complaints processes are transparent and current. The consultation document also asked questions about whether rule 11 should be amended to require licensees to disclose unresolved complaints to new employers when moving agencies. 63 Submissions on this matter were divided with some submitters considering it beneficial while others opposed changes of this nature. Some of those who supported the proposal gave conditional support contending that it should not include current investigations or that it should not include vexatious or frivolous complaints that have not been investigated. 64 Those against the proposal suggested that agencies should do their own due diligence when hiring or engaging new salespersons. One pointed out that currently, agencies could, with an individual’s consent, obtain this information already. One submitter suggested that this proposal was an employment matter and may not be appropriate for a professional Code of Conduct. 65 One submitter noted that some insurers, as a part of their policy, required immediate notification of complaints against current employees or contractors, and that this rule was important for this reason. Sector specific issues 66 The consultation document included specific questions about whether the Code of Conduct needed to be modified for non-residential real estate sectors such as business brokering, commercial real estate or rural real estate. 67 The consultation document also asked submitters for their views on whether the new rule 10 should only apply to residential sales. Business brokering 68 There were a small number of comments highlighting specific issues for business brokering. These comments were that: • it is difficult to secure an agency agreement • appraising businesses is either unnecessary or difficult • appraisals should not be required when selling a business franchise • it is very difficult to obtain comparative data for business appraisals. Code of Conduct Summary of Submissions June 2012 Page 10 of 12
Commercial real estate 69 A number of submitters commented on commercial real estate issues. One submitter contended that there should be a separate Code of Conduct for commercial real estate. Another was of the opinion that the Code of Conduct, and indeed the Act could benefit from provisions that allow for sophisticated or large scale commercial clients from contracting out of consumer protection provisions. 70 Another suggested that rule 9.3 should only apply to sole agency agreements due to the prevalence of long term general agency agreements in the commercial sector. 71 Many submitters commented on appraisals for commercial real estate stating issues such as a lack of available information due to confidentiality clauses in contracts and that most commercial clients obtain valuations and therefore do not need appraisals. 72 One issue that submitters put forward is that it is difficult for licensees to obtain agency agreements, including general agencies, from sellers/lessors. Linked to this issue were submissions which sought greater clarity about the Authority’s view on what constituted ‘offering’. One submitter requested specific guidance on offering. Rural real estate 73 Submitters commenting on rural real estate commented on difficulties in relation to appraisals. This is primarily due to the possibility of large price variations due to stock or herds being valued only 10 days before settlement. This means that many rural transactions are unconditional and agreed far in advance of a final valuation and price being reached. 74 Another area that rural submitters suggested possible concerns around was rule 10.8. In many rural settings sellers are reluctant to sign a formal agency agreement until the agency has a serious prospective purchaser. 75 Rules relating to all material particulars (rule 9.7) can also be problematic in rural transactions. Material particulars such as DDT testing, soil tests and company share details are typically not available at the point of listing and are instead provided during the marketing and offering process. Rule 10 and residential sales 76 Submitters were overwhelmingly supportive of rule 10 applying to selling in all sectors. 77 One submitter pointed out that it would be rather difficult to differentiate between properties. For example lifestyle blocks are located in rural areas but are typically considered residential properties. Other matters 78 The consultation document also contained questions about vulnerable consumers and whether licensees should be required to recommend that clients and customers obtain legal advice. Code of Conduct Summary of Submissions June 2012 Page 11 of 12
Page 1 and 2: Real Estate Agents Authority Review
Page 3 and 4: • disclosure of defects (rule 6.5
Page 5 and 6: Rule Six: Standards of professional
Page 7 and 8: Rule Nine: Client and customer care
Page 9: through the property. They recommen

Summary of Submissions - Real Estate Agents Authority

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