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Real estate agents want improved image
Real estate agents have a public image that few except perhaps used car salesmen would envy. They have a reputation for sharp’dealing and slipperiness that has been grafted onto the popular imagination by a series of well-worn jokes. The image, of course, bears little relation to the facts. It is grossly unfair to the vast majority of real estate agents, but it endures.
The Real Estate Institute, aware of the problems this creates, is anxious to improve the public profile of its members.
The profession is more tightly regulated than is commonly supposed. Real estate agents are bound by the Real Estate Agents’ Act, the Rent Appeal Act and by the institute’s code of ethics.
They are expected to regard the code as “an everyday guide” in the practice of their trade and the institute has the “teeth" to ensure that they do. The code consists of two parts: the first governs relations between members; the
second, their dealings with the public. The president of the insti-
tute s Canterbury branch. Mr Peter Cook, says that it is enforced more zealously in Christchurch than in many centres. “The seriousness with which these matters are taken differs from place to place, but’ we have a very active disciplinary organisation which investigates complaints on a fairly regular basis,” he explains. He believes that the code should be widely publicised so that members of the public are aware of their rights. They could then assist the institute in maintaining proper standards of conduct by reporting any breaches. Those articles of particular relevance are:
• An agent must not buy for himself any property listed with him unless he has the written consent of the vendor. • He must not “make a practice” of speculating on the property market, and should discourage his employees from doing so. • If asked by a client to
buy or sell a property in which he is himself interested, he must reveal his interest to all parties in the transaction and, if buying the property on , his own behalf, he must supply an independent valuation. • Before accepting a sole agency for a property, the agent must first ensure that he is able to adequately fulfil his responsibilities to the client. • If asked to appraise a property, to supply a valuation or to give a professional opinion, the agent must give a fully considered answer. • He is not entitled, without the authority of the ven.dor, to offer a property for sale or . to erect a “For Sale” sign. • He must offer the property at a price agreed to by the vendor and, if his client quotes a price that differs “substantially” from the market value, he must advise him ac- • He must not under any
district’s judicial sub-com-mittee.
It will conduct a hearing at which the investigating sub-committee, the complainant. the witnesses, and the agent will give evidence. It has the power to reprimand or fine the member to a limit of $lOO on each charge. If the breach is considered to be serious, it will refer the case to the institute’s national council for further action.
This system is currently being reviewed. The Real Estate Agents Amendments Bill which is now before a Parliamentary select committee, may make changes. The bill provides for the restructuring of the disciplinary procedure, which the Minister of Justice (Mr McLay) says is ineffective, particularly in the country’s smaller districts. Personal friendships in these areas have caused embarrassment to agents -asked to inspect the professional standards of their colleagues. Another shortcoming. Mr McLay said is that the inves-
tigations at the preliminary level are often undertaken by people with no formal training in the preparation of a case for a disciplinary prosecution.
The bill proposes that the districts be amalgamated into regions, each with a disciplinary committee empowered to levy substantially greater fines and penalties than the present act' provides for. But Mr Cook doubts that the amendments would have “a significant effect on the institution." either nationally or locally. He interprets it as an attempt by the Justice ■ Department to ensure that the disciplinary machinery is seen by the public to be independent and impartial.
“At the moment we are a bit like the police force. We discipline our own members. We have been moving away from this over the years.” he says. He believes, however, that ■' there is some room for improvement. The present process is very time-consuming.
The institute would like it streamlined, and made more efficient, he says. The national council, which is the highest authority within the institute, has the power to impose heavier fines. It can take stronger disciplinary action against the member than the investigating committees. It mav also refer the case to the Real, Estate Agents’ Licensing Board (a Govern-
ment-appointed body). The board can prevent the miscreant from trading, either by cancelling his licence or revoking his certificate of
approval. Members of the public may appeal directly to the board if they consider the breach sufficiently serious. Mr Cook says. It should be remembered, however, that unlawful behaviour, civil claims, and claims for damages are dealt with by the courts. The institute has the auth-. ority to discipline its members only for unethical conduct.
In Residence
circumstances allow any property in his care to be used for immoral or illegal purposes. The code also contains a number of provisions to protect would-be tenants. Among them are the following: • If arranging a tenancy, the agent must not demand or accept in advance any registration, advertising or booking fee, deposit, commission or “consideration” unless expressly authorised by the Rent Appeal Act. • He must not accept any instruction from a client which requires him to discriminate against anyone for reasons of race or nationality.
Patricia Herbert
PROPERTY REPORTER
® When arranging a tenancy he should ensure that its terms and conditions are put in writing and signed by both parties unless “expressly re- , quested otherwise.” © He should not imply or state that his services come free of charge. Any complaints against an agent for professional misconduct will not be acted upon by the institute unless they are submitted in writing. They should be sent to the secretary of the local branch (Mr G. H. Kissel). He will refer them to a three-member sub-commit-tee for investigation. If the agent concerned is found to be in breach of the code, the case will be put before the
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