Tougher estate agent rules help everyone

The rules governing the way we buy and sell real estate are about to change for the better and, as many will rightly say, about time, too. For too long the real estate industry has lived with the reputation that it was far too soft on those of its members who transgressed and duped or deceived their customers.

The shortcomings of the existing regulatory system for real estate agents was epitomised by the story of Deb Leask which featured in the Herald three years ago. An agent tried to knock down the price of two units owned by Ms Leask to almost half their asking price to buy the properties himself.

The penalty was the maximum, a mere $750 imposed under the industry's self-regulation mechanism. It was a serious ethical breach punished with a sanction so light as to be scarcely noticeable for the offender and his company.

When confronted with such stories the industry traditionally made the right noises about the need to deal firmly with unethical practices. Unfortunately, its words were not matched by actions. Not even when former Associate Justice Minister Clayton Cosgrove put it on notice to come up with more realistic suggestions for self-regulation or face the consequences.

To read the full NZ Herald article click here

Posted: 28 Sep 2009

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