Summary of Submissions - Real Estate Agents Authority

79 Submitters also requested information and guidelines on:
• what constituted ‘offering’ land or a business
• appropriate processes for multi-offers
80 In additions some submitters provided feedback about the Code of Conduct’s provision in relation
to buyers agents.
Vulnerable consumers
81 Question 21 in the consultation document asked if the Code of Conduct could be modified to
provide increased protection for vulnerable consumers. Industry submitters were not supportive
with questions and concerns about how a vulnerable person would be defined, that this was not
needed in the commercial sector and that whether someone was ‘vulnerable’ would be too
difficult for salespersons to assess and would be open to abuse by lawyers. One submitter
suggested that the Authority could look at the Commerce Commission’s use of the term ‘capacity’
if it were to take this concept further.
82 One submitter considered that in-house and the Authority’s complaints processes sufficiently
protected vulnerable consumers.
Recommending legal advice
83 The consultation document included a question about whether licensees should be required to
recommend, rather than allow a consumer time to obtain, legal advice before signing a
contractual document (e.g. agency agreement or sale and purchase agreement).
84 Some submitters considered that this was an appropriate step and that licensees should be
recommending legal and expert advice throughout the buying process or that licensees should
recommend that people making legally binding agreements get legal advice. Other submitters
considered that the current disclaimers and provisions were adequate, while one suggested that
recommending legal advice should only be required where the licensee is aware of defects (under
rule 6.5).
Buyers agency
85 Some submitters, including one buyers’ agent, contended that there should be an additional rule,
similar in nature and substance to new rule 10, that places specific and appropriate consumer
protection obligations on buyers agents.
Conclusions
86 Submissions were varied and robust with a number of views on both the consultation document
and wider issues.
87 Most notable were the concerns from industry about double commissions and appraisals.
Code of Conduct Summary of Submissions June 2012 Page 12 of 12