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Real Estate Agents Act 2008

Duties relating to real estate agency work - Disclosure of information as to transaction and conflicts of interest

136: Disclosure of other benefits that licensee stands to gain from transaction

You could also call this:

"Real estate agents must tell you about any extra money they'll get from a sale"

Illustration for Real Estate Agents Act 2008

You need to know if a real estate agent will benefit from a transaction. The agent must tell you in writing if they will gain financially from the deal. They must do this before giving you any contract papers. You should be aware that the agent does not have to tell you about their commission. This is because the commission is part of their normal pay for the work they do. If the agent does not follow this rule, it does not mean the contract is cancelled. The contract is still valid even if the agent made a mistake.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1152132.

Topics:
Money and consumer rights > Consumer protectionHousing and property > Buying and selling homes
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135: Client to be provided with valuation, or

"Get a valuation to help you make informed decisions when working with a real estate agent"

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137: Meaning of licensee and person related to licensee in sections 134 to 136, or

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Part 5Duties relating to real estate agency work
Disclosure of information as to transaction and conflicts of interest

136Disclosure of other benefits that licensee stands to gain from transaction

  1. A licensee who carries out real estate agency work in respect of a transaction must disclose in writing to every prospective party to the transaction whether or not the licensee, or any person related to the licensee, may benefit financially from the transaction.

  2. Subsection (1) does not apply to any matter disclosed under section 128 or 134.

  3. The licensee must make the disclosure required by subsection (1) before or at the time that the licensee provides the prospective party with any contractual documents that relate to the transaction.

  4. For the purposes of this section, an agent does not benefit financially from a transaction merely because of any commission payable to the agent under an agency agreement in respect of the transaction.

  5. A contract entered into in contravention of this section may not be cancelled merely because of that contravention.