Real estate agents face tougher laws
10:22AM Tuesday May 29, 2007
An independent body with wide investigative powers and the ability to force rogue real estate agents to compensate clients is among Government proposals aimed at cleaning up the industry.
Associate Justice Minister Clayton Cosgrove today unveiled the Government's preferred options for a revamp of the industry.
He said he intended to strip the industry of its ability to regulate itself as the current system was not working well enough.
"Major concerns have been raised by the public and real estate agents themselves about how the industry deals with complaints and disciplinary matters," Mr Cosgrove said.
He said self-regulation had failed to protect customers from rogue agents.
The Government was proposing a new Real Estate Licensing Authority with the ability to investigate and resolve complaints.
It would have wide investigative powers and would be able to order a wide range of penalties including fines, compensation and the delicensing of agents.
The Government was also proposing a register of real estate agents and salespeople that would include any instances where they had breached industry standards alongside their names.
Mr Cosgrove said because the disciplinary function would be removed from the Real Estate Institute of New Zealand (REINZ) it would no longer be compulsory for agents to be members.
He said the changes would benefit consumers and agents.
"Consumers will be better protected by an independent disciplinary process," he said.
"Honest real estate agents will benefit from no longer being tarnished by the last land shark who ripped off a consumer and who brings the entire industry into disrepute."
Mr Cosgrove said he would hold a series of community meetings to consult on the proposed changes.
The public had until July 10 to make submissions on the proposals.
Legislation would be introduced this year with the aim of passing it into law by early next year.
- NZPA
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