STATE'S NEW ROLE

New Zealand Herald, Volume LXXIII, Issue 22470, 14 July 1936, Page 11

STATE'S NEW ROLE

LAND AGENCY WOER ADVANCES CORPORATION SELLING SUBURBAN SECTION3 CRITICISM OF THE POLICY The State Advances Corporation, which last week took out of the hands of Auckland land agents the reverted house properties which had been on their books since April, now announces a plan by which applicants for housebuilding loans will be put into direct touch with owners desirous of selling suburban sections, thus enabling sales to be made without the assistance of agents or the payment of commission. The corporation has issued an invitation to owners to forward full particulars of properties which they are prepared to sell. The sections will be valued by the corporation free of charge to the owners, and if the reserve prices approximate the valuations so made, the properties will be listed and submitted to applicants for loans who are desirous of purchasing sections. No charge will be made to the owners for this service. It is understood that the corporation will not place on its lists properties which its inspectors consider unsuitable asi building sites on account of location, aspect or nature of soil, or for any other reason. By a selection process of this kind it is expected that the various local offices of the corporation will be able to supply applicants with lists of good sites which are available for purchase at prices which the corporation considers reasonable. Blow to Estate Agents The corporation, of course, is closely concerned with the quality and price of the section on which a mortgagor builds his house, since the mortgage is secured on both land and building. Under the plan, the applicant, not the corporation, will purchase the section, and normally any unpaid portion of the purchase-money will be found out of the State loan. By'listing properties, the corporation will merely assist the applicant to get into touch with actual owners of sections that are for sale at known prices. There is, of course, nothing to restrict an applicant to this mode of purchase; he may conduct his search for a section through the usual channels of real estate business or by direct negotiation with any propertyowner. "This is the second body-blow that the State Advances Corporation has given the estate agency profession within a few days," said Mr. G. B. Osmond, president of the Auckland branch of the New Zealand Real Estate Institute, yesterday. "It has deprived estate agents of the opportunity to sell properties which have fallen back on its hands, and now it sets up as an agent in competition with them." Ofler of Services Neglected Under present conditions, Mr. Osmond said, agents would have a fair chance of selling many of the reverted ! properties if they were allowed, proI vided the corporation fixed prices according to the true values and was ] prepared to accept small deposits and table mortgages on suitable terms. However, for reasons not stated, the | properties had been withdrawn. Licensed land agents had a definite legal status and paid many thousands annually to the State in licence fees. Their services had been freely used for ; many years whenever the Government ; wished to acquire land, as well as in ' Compensation Courts. Those services ; were always available, and so far aa I members of the Real Estate Institute were concerned, they had been freely offered to the Government in any form, ; gratuitous or otherwise, that might be of help to the community. Estate agents had had a hard time in the depression. Now that business was showing a slight revival, it was disappointing to find that the State was not only neglecting their offer but was cutting further into-their means of livelihood. They had already suffered through being supplanted by the .Public Trustee in the management of many estates.

Mr. Osmond added that very probably the Parliamentary committee of the Keal Estate Institute would tiuie the matter up with the Government.