Boosting supervision and standards
The Real Estate Authority (REA) has reported a significant 21.6% increase in the number of licensed real estate branch managers over the past 12 months.
This growth comes amidst a gradual decline in the total number of licensed real estate professionals.
Importance of supervision and consumer protection
REA CEO Belinda Moffat (pictured above) stressed the positive impact of this increase, noting the critical role branch managers play in supervising real estate salespeople and ensuring compliance with the Real Estate Agents Act 2008 (REA Act).
“In 2022 REA worked to develop and introduce a new NZQA-approved branch manager qualification alongside the Real Estate Institute of New Zealand and The Skills Organisation,” Moffat said. “We wanted to see strong growth in the number of supervisors in the profession to support high standards of conduct.”
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Supporting the real estate sector
To further enhance supervision practices, REA issued a Supervision Standard in 2017 and provided additional guidance in 2023.
“Through supervision, branch managers are able to support salespeople to identify and resolve issues to avoid problems occurring in a transaction,” Moffat said. “This is particularly important in a challenging real estate market where transactions can be complex.”
Regulatory priorities and outcomes
The recent increase in branch manager licences aligns with REA’s regulatory priorities.
As of April 30, there were 490 licensed branch managers, marking the second consecutive year of growth in this category. This is in contrast to the overall decline in active real estate licences, which have decreased by 3.7% since April 2023.
“A significant and sustained increase in branch manager licences is a key outcome REA intended from the qualifications review,” Moffat said. “It is also a positive sign of the real estate sector seeking to strengthen its compliance practices and is good news for real estate consumers.”
Focus on preventing consumer harm
Moffat stressed the importance of supervision in preventing consumer harm.
“From a regulatory perspective preventing consumer harm is preferable to addressing complaints after harm has occurred,” she said. “The supervision provided by branch managers and agents is key to harm prevention.”
REA’s efforts to support the real estate sector in maintaining high standards of professional conduct are ongoing.
“We appreciate the critical work of branch managers and other sector leaders towards this objective,” Moffat said. “Of course, while supervision is key, if conduct does not meet the standards expected, then REA can address consumer concerns through the complaints and discipline process we oversee.”
Read the REA media release here.
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