Supplementary Order Paper No 243

No 243

House of Representatives

Supplementary Order Paper

Tuesday, 2 September 2008

Real Estate Agents Bill


Proposed amendments

Hon Clayton Cosgrove, in Committee, to move the following amendments:

Clause 2(2)

To omit 1 year (line 10 on page 9) and substitute 14 months.

Clause 4

Definition of licensee: to omit this definition (lines 5 and 6 on page 11) and substitute the following definition:

licensee means an agent, a branch manager, or a salesperson

Paragraph (c) of the definition of real estate agency work: to add the following subparagraph (after line 3 on page 12):

  • (vi) the provision of conveyancing services within the meaning of the Lawyers and Conveyancers Act 2006

To insert the following definition after the definition of register (after line 5 on page 12):

REINZ means the Real Estate Institute of New Zealand Incorporated

To add the following subclause as subclause (2) (after line 35 on page 12):

  • (2) To avoid doubt, the sale, purchase, or other disposal or acquisition of shares comes within the definition of transaction in subsection (1) if, and only if, the shares entitle the holder to a licence that is registrable under Part 7A of the Land Transfer Act 1952.

Clause 16

To insert the following paragraph after paragraph (d) (after line 17 on page 16):

  • (da) appoint Complaints Assessment Committees and maintain a panel of persons suitable to serve as members of Complaints Assessment Committees; and

Clause 17

To insert the following subclause after subclause (3A) (after line 19 on page 17):

  • (3B) The Minister must consult with REINZ when making the first appointment of licensees or former licensees under subsection (3A).

Clause 22(1)

To insert by notice in the Gazette and after the Minister may, (line 3 on page 19).

Clause 23

To omit section 18 or 19 in each place where it appears (lines 18, 21, and 26 and 27 on page 19) and substitute in each case section 18, 19, or 22.

Clause 29

Paragraph (i): to insert before that the agent (line 36 on page 22) that there are reasonable grounds to believe.

Paragraph (j): to insert before the agent has not (line 3 on page 23) that there are reasonable grounds to believe that.

Paragraph (k): to insert before the agent operates (line 6 on page 23) that there are reasonable grounds to believe that.

Clause 29B(1)

To omit it is satisfied that it is appropriate (lines 32 and 33 on page 23) and substitute in its opinion it is appropriate to do so.

Clause 29C(1)

To omit this subclause (lines 5 to 10 on page 24) and substitute the following subclause:

  • (1) The Authority may make an order appointing an appropriate person as an interim administrator of an agent's trust account if the Authority—

    • (a) reasonably suspects that any money entrusted to the agent may be at risk; and

    • (b) is satisfied that 1 or more of the grounds specified in section 29 apply to that agent.

Clause 30(1)(b)

To insert after or has been, (line 11 on page 25) an officer of the company or who is, or has been,.

Clause 33(1A)

To omit its in each place where it appears (lines 18 and 20 on page 27) and substitute in each case the Registrar's.

Clause 34(1)(e)

To omit 2 years' (line 12 on page 28) and substitute 3 years'.

Clause 35

Subclause (1)(a): to insert after of a crime involving dishonesty (lines 31 and 32 on page 28) (or of a crime that, if committed in New Zealand, would be a crime involving dishonesty).

Subclause (1)(d): to omit last (line 6 on page 29) and substitute preceding.

Clause 38(2)

To omit subparagraphs (b) and (c) (lines 21 to 27 on page 30).

Clause 39(2)

To omit every person (line 6 on page 31) and substitute the person.

Clause 41

Subclause (1): to add ; and (line 28 on page 31) and also to add the following paragraph (after line 28 on page 31):

  • (c) if the applicant is a company, any person who will be an officer of the company if the application is granted is, by reason of his or her personal character or financial position, a proper person to be an officer of a licensee company.

Clause 44(1)(b)

To omit section 56 or 57 (line 12 on page 33) and substitute section 57, 107(2)(c), or 112.

Clause 50

To omit this clause (lines 25 to 32 on page 34).

Clause 56

Heading to clause 56: to omit Mandatory (line 8 on page 37) and substitute Recording of.

Clause 57(4)

To omit section 53 or 56 (line 24 on page 37) and substitute section 53, 107(2)(c), or 112.

Clause 58(2)

To omit section 53 or 56 (lines 31 and 32 on page 37) and substitute section 53, 107(2)(c), or 112.

Clause 59(1)

To omit section 56 (line 2 on page 38) and substitute section 107(2)(c) or 112.

Clause 61

Subclause (2): to omit paragraph (b) (lines 5 to 8 on page 39).

Subclause (3): to omit the Authority (line 25 on page 39) and substitute the Registrar.

Subclause (4): to omit the Authority's (line 33 on page 39) and substitute the Registrar's.

Clause 65

Subclause (1): to insert the following paragraph after paragraph (f) (after line 26 on page 41):

  • (fa) whether the licensee has completed any continuing education required by practice rules made by the Authority pursuant to section 19:

Subclause (2)(b)(i): to omit (for example, whether for non-payment of a fee or levy set by the Authority that was required from the licensee) (lines 32 to 35 on page 41).

Clause 71(ab)

To insert after regulations (line 25 on page 43) or rules.

Clause 72(a)

To omit licensees (line 1 on page 44) and substitute agents.

Clause 73(2)

To omit the Committee (line 24 on page 44) and substitute a Committee.

Clause 75(h)

To omit this paragraph (lines 34 to 36 on page 46).

Clause 76

Subclause (1): to omit proceed with (line 4 on page 47) and substitute inquire into.

Subclause (2)(e): to omit proceed with (line 16 on page 47) and substitute inquire into.

Clause 86(2)(b)

To omit this paragraph (lines 3 to 5 on page 52) and substitute the following paragraph:

  • (b) a determination that it has been proved, on the balance of probabilities, that the licensee has engaged in unsatisfactory conduct:

Clause 90(1)

To insert after the Committee (line 10 on page 53) may.

Clause 97

To insert the following subclause after subclause (3) (after line 3 on page 56):

  • (3A) The Minister must consult with REINZ when making the first appointment of a licensee under subsection (2)(b).

Clause 107

Subclause (1): to omit this subclause (lines 7 to 11 on page 59) and substitute the following subclause:

  • (1) If the Disciplinary Tribunal, after hearing any charge against a licensee, is satisfied that it has been proved on the balance of probabilities that the licensee has been guilty of misconduct, it may, if it thinks fit, make 1 or more of the orders specified in subsection (2).

Subclause (2)(g): to omit any act or omission of a licensee (line 35 on page 59) and substitute the licensee's misconduct.

Subclause (4): to omit this subclause (lines 10 to 17 on page 60) and substitute the following subclause:

  • (4) If the Disciplinary Tribunal, after hearing any charge against a licensee, is satisfied that the licensee, although not guilty of misconduct, has engaged in unsatisfactory conduct, the Tribunal may make any of the orders that a Complaints Assessment Committee may make under section 90.

Subclause (5): to omit this subclause (lines 18 to 20 on page 60).

Clause 108

Subclause (1): to insert after given under (lines 24 and 25 on page 60) section 78 or.

Subclause (2)(a): to insert after person under (line 29 on page 60) section 78 or.

Clause 115(1)(b)

To add (line 19 on page 63) and enter any conditions contained in the interim order.

Clause 117(3)

To omit or (line 4 on page 64) and substitute on.

Clause 117A(3)

To omit this subclause (lines 32 to 34 on page 64) and substitute the following subclause:

  • (3) The required name information must be capable of being easily read from outside each office or shop maintained by the agent for the purposes of the business.

Clause 121(1)

To omit particular (line 24 on page 66) and substitute separate.

Heading above clause 136 and clauses 136 to 141

To omit this heading and these clauses (line 31 on page 75 to line 27 on page 78).

Clause 149(1)(a)

To omit this paragraph (lines 25 and 26 on page 80).

Clause 152(2)(b)

To omit or body corporate (line 28 on page 82).

Heading above clause 152A and clauses 152A and 152B

To omit this heading and these clauses (lines 1 to 9 on page 83).

Clause 155(j)

To omit this paragraph (lines 34 and 35 on page 85).

Clause 157

To omit Act (line 2 on page 87) and substitute section.

To omit the Real Estate Institute of New Zealand Incorporated (REINZ) (lines 4 and 5 on page 87) and substitute REINZ.

Clause 158

To add the following subclause as subclause (2) (after line 21 on page 87):

  • (2) For the purposes of subsection (1), section 79 of the Real Estate Agents Act 1976 has effect as if the references in that section to real estate agents were references to real estate agents within the meaning of this Act.

Clause 163(1)

To insert after Regional Disciplinary Committee (line 34 on page 89) , and subcommittee of a Regional Disciplinary Committee,.

Clause 164

Subclause (1): to omit of this Act (line 9 on page 90) and substitute of this section.

Subclause (3): to omit of this Act in each place where it appears (lines 17 and 20 on page 90) and substitute in each case of this section.

Clause 165

Subclause (1): to omit of this Act (line 35 on page 90) and substitute of this section.

Subclause (3): to omit of this Act in each place where it appears (lines 9, and 11 and 12 on page 91) and substitute in each case of this section.

Subclause (6): to omit of this Act (line 25 on page 91) and substitute of this section.

Clause 166

Subclause (1): to omit of this Act (line 31 on page 91) and substitute of this section.

Subclause (3): to omit of this Act (line 3 on page 92) and substitute of this section.

Clause 167(1)

To omit of this Act (line 9 on page 92) and substitute of this section.

Clause 169

Subclause (1): to omit The Complaints Assessment Committee (line 28 on page 93) and substitute A Complaints Assessment Committee.

Subclause (2): to omit unacceptable (line 6 on page 94) and substitute unsatisfactory.


Explanatory note

This Supplementary Order Paper amends the Real Estate Agents Bill. In particular,—

  • it extends the commencement of most of the provisions from 1 year after assent to 14 months after assent:

  • it clarifies that conveyancing (within the meaning of the Lawyers and Conveyancers Act 2006) is not included in the definition of real estate agency work:

  • it inserts a definition of REINZ (the Real Estate Institute of New Zealand Incorporated):

  • it clarifies that share transactions are not governed by the Bill. The only exception is the acquisition of shares in flat-owning companies that confer a licence on the shareholder to occupy a flat:

  • the Minister is now required to consult with the Real Estate Institute of New Zealand Incorporated when making the first appointment of licensees and former licensees to the Authority and the Real Estate Agents Disciplinary Tribunal (clauses 17 and 97):

  • it increases the experience in real estate agency work required before a person is entitled to an agent's licence or a branch manager's licence from 2 years to 3 years (clause 34(1)):

  • it removes certain grounds of objection relating to whether an applicant for a licence is a proper person to hold a licence, as these grounds of objection are already covered in the relevant section (clause 38(2)(b) and (c)):

  • it removes clause 50, which requires the chief executive of the Ministry of Justice to undertake a review of the section that relates to the employment status of salespersons (clause 49):

  • it amends the matters to be contained in the register to include whether the licensee has completed any required continuing education requirements (clause 65):

  • it removes the discretion from the Disciplinary Tribunal to remit certain cases back to the Complaints Assessment Committees that brought those cases before the Tribunal (clause 107):

  • it removes the provisions relating to auction requirements (clauses 136 to 141) and related offence and regulation empowering provisions (clauses 152A, 152B, and 155(j)):

  • it includes subcommittees of Regional Disciplinary Committees among existing real estate bodies that are continued in existence for transitional purposes (clause 163(1)).

This Supplementary Order Paper also makes some consequential amendments and includes a number of minor drafting changes.