REAA Guidelines to selling

The REAA Real Estate Agents Authority came into operation on 17 November 2009. A new code of ethics was prescribed for all acting salespeople who are now known as Real Estate Licensees.

Previously homeowners wanting to sell their property were known as “Vendors”. Under the new REAA legislation, vendors or homeowners are now referred to as “Clients.”

The main changes for “Clients’ under the new regulations are listed below:

Client provided with estimated appraisal price
Listing price agreed with client
Client advised of estimated commission payable based on listing price
Client provided with REA Auth Listing Guide
Client provided with REA Auth Selling Guide
Client provided with in-house complaints process
Client provided with REA Auth Professional Conduct and Client Care Rules
Client provided with written statement identifying rebates/discounts
Client provided with advertising and marketing program
Client advised they have until 5.00 p.m. following working day to provide notice in writing of cancellation of agency
Client advised that they may seek independent advice
Client advised that if they have already entered into another agency agreement they may be liable for payment of two commissions
Client has advised of any water penetration issues
Client has advised of any work completed that requires permits
Client has advised of an pending work on adjoining properties for which they have signed consents.

More information on the Real Estate Agents Authority

REAA Booklet on Selling

The REAA have published a booklet informing you of your rights and responsibilities when selling property in New Zealand. It also explains the range of different options you have. You will be required to acknowledge you have read this before you sign any agency agreement.