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Real Estate Agents Act 2008

Real Estate Agents Authority - Powers of intervention

25: Grounds for intervention

You could also call this:

"When can action be taken against a real estate agent?"

Illustration for Real Estate Agents Act 2008

You can take action against a real estate agent for certain reasons. These reasons include if the agent has done something wrong with someone else's money or property. You can also take action if the agent's employee has stolen money or property. You can take action if the agent is unable to manage their trust account due to illness or disability. This can also happen if the agent has died. You can take action if the agent has financial problems, such as being bankrupt. You can take action if the agent's licence has been cancelled or suspended. This can also happen if the agent has stopped doing business and has not closed their trust account. You can take action if the agent has not followed the rules for managing their trust account. You can take action if the agent's trust account has been managed in a fraudulent or reckless way, as per subpart 4 of Part 5 of the Insolvency Act 2006 or the Companies Act 1993. The agent's actions can be checked against sections 26 to 28. These rules help keep your money and property safe.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1152000.

Topics:
Money and consumer rights > Consumer protectionHousing and property > Buying and selling homesBusiness > Industry rules
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24: Payment of fees, levies, and fines, or

"Paying fees, levies, and fines in real estate"

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26: Power to take possession of documents, or

"The Authority can ask for documents if they think a real estate agent has done something wrong."

Part 2Real Estate Agents Authority
Powers of intervention

25Grounds for intervention

  1. The grounds for exercising a power conferred by any of sections 26 to 28 in respect of any agent are—

  2. that there are reasonable grounds to believe that the agent, or, if the agent is a company, any officer of the company, has been guilty of theft or of any improper conduct in relation to the money or other property of any other person; or
    1. that there are reasonable grounds to believe that any money or other property entrusted to the agent has been stolen by his or her employee, salesperson, or person acting on behalf of the agent, or, if the agent is a company, by any officer, employee, salesperson, or person acting on behalf of the company; or
      1. that the agent is, owing to physical or mental disability, unable to properly administer the agent's trust account; or
        1. that the agent has died; or
          1. that the agent has been adjudicated a bankrupt or has been subject to subpart 4 of Part 5 of the Insolvency Act 2006, or has been placed in receivership or liquidation under the Companies Act 1993; or
            1. if the agent is a building society, that the building society is being dissolved; or
              1. that the licence of the agent has been cancelled or suspended; or
                1. that there are reasonable grounds to believe that the agent has ceased to carry on business and has neglected to wind up the agent's trust account after reasonable notice has been given to the agent by the Authority requiring the agent to do so; or
                  1. that there are reasonable grounds to believe that the agent has not administered the trust account in accordance with this Act and any regulations made under it; or
                    1. that there are reasonable grounds to believe that the agent operates a trust account that has been administered fraudulently or recklessly.

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