Summary of Submissions - Real Estate Agents Authority

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28 One submitter considered that rule 6.5 is adequate as written and another thought that both rule 6.5(a) and 6.5(b) provided for useful and complementary avenues for licensees to confirm with clients and access the information that they have about the property. Rule Eight: Agent’s awareness of duties and obligations 29 The consultation document included suggestions to change the title of the rule, reorder rule eight and new rules relating to an agent’s supervision responsibilities. The proposed changes were to: • modify the title of the rule so that it is “Duties and obligations of agents”. • move rule 8.4 so that it is after 8.2. • create a section header called “supervision” after rule 8.3 and before rule 8.4. • add a new rule to require agents to ensure that licensees they employ or engage are familiar with current issues in the industry. This is designed to reinforce that agents should be ensuring that their staff are aware of recent legal changes, significant tribunal or court decisions and any other relevant developments in the industry that real estate professionals should have an understanding of. • add a new rule requiring agents to provide on-going support and supervision to all licensees employed or engaged by them. 30 The consultation document also asked questions about whether greater emphasis on supervision was warranted. 31 A number of submitters agreed with the proposed changes and viewed them as positive changes which clarified and better defined what an agent’s supervision duties are. Another submitter considered that s50 of the Act was adequate and the proposals around supervision are unnecessary. 32 One submitter contended that the proposals around current issues, such as Tribunal decisions and Authority advice, are unnecessary and they are predominantly already covered by rule 5.2 which requires licensees to have a sound knowledge of the Act and the Rules. 33 One submitter considered that these changes should instead be implemented through the Duties of Licensees regulations to avoid being ultra vires. 34 One submitter suggested that rule 8.5 should be listed before rule 8.4 to create a better flow from high level to more detailed obligations and that rule 8.6 should be reworded to require agent’s to ‘make reasonable opportunities’ to licensees to become aware of recent legal changes. This was suggested so that the rule could reflect the practical difficulties associated with the predominant engagement of salespersons as independent contractors as opposed to direct employment relationships. Code of Conduct Summary of Submissions June 2012 Page 6 of 12
Rule Nine: Client and customer care 35 The consultation document contained a number of proposed amendments and additions to, and questions about, rule nine. These were: • replacing the word “when” with “before” in rule 9.8 • amending rule 9.21 (confidentiality) to better align with the Privacy Act • questions about when licensees should give warnings about double commissions. 36 Double commissions and agency agreements attracted the largest number of comments from submitters. 37 One submitter suggested that rule 9.3 (communication with clients) needs to be clarified as there can be multiple licensees involved in an agency agreement (company agent, supervising agent, listing salesperson and other salespersons). The communication obligations should only be placed on a single licensee. 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. 38 One submitter contended that the proposal to change the requirements of rule 9.8 from “when” to “before” is not a technical or minor amendment as claimed in the consultation document and that this amendment is not required. 39 All of the submitters who commented on the proposed changes to confidential client information were supportive of the proposed changes. One of these submitters suggested that these requirements would be best narrowed to confidential personal information of the clients. Double commissions 40 In general submitters overwhelmingly called for the Authority to intervene in some way to address industry concerns in relation to clients being exposed to double commission claims. Table One: Double commission submissions No of subs Issue 4 Double commissions are a very important issue that the industry is facing that the Authority needs to intervene in. 2 The warning for double commissions should be given when the client has an existing agency agreement in place. 3 Set timing requirement for cancellation of agency procedures 2 Set processes for cancellation of agency procedures 1 The Authority should require licensees to resolve double commission disputes and not allow clients to be subject to double commissions 41 One submitter contended that it is a client’s obligation to read and understand what they are signing. The only obligation for licensees should be to inform their client that an agency agreement and a sale and purchase agreement are legally binding. Code of Conduct Summary of Submissions June 2012 Page 7 of 12
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Summary of Submissions - Real Estate Agents Authority

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