The regulator highlights the value of a robust and effective regulatory regime in a shifting market
The Real Estate Authority’s (REA) has released its 2021/22 annual report, in which it highlighted its achievements over the period, including increased awareness of REA as a real estate sector conduct regulator and consumer protection agency.
Read more: Real Estate Authority releases annual report
Denese Bates, REA chair, said the 2021/22 financial year was a turbulent one for the authority and the industry.
“I am proud of REA’s achievements this year under challenging and changing conditions, and the positive impact we have had on the wellbeing of New Zealanders in this first year of delivery of our new four-year strategy,” Bates said. “As the annual report demonstrates, despite the pressures of a shifting market and COVID-19 operating restrictions, we have seen indicators of improved conduct by real estate professionals and effective consumer empowerment and protection.”
Belinda Moffat, REA chief executive, said the regulator has responded successfully to distinctive risks, has taken opportunities to enhance the clarity of regulatory information, and has worked to increase engagement with diverse communities.
“In late 2021, we worked with key stakeholders to develop and issue clear and timely guidance for how real estate businesses could safely operate under COVID-19 restrictions,” Moffat said. “Later in the financial year, we took milestone steps to increase the accessibility of key real estate consumer protection information to speakers of other languages. Importantly, we undertook consultation and drafted clarifying guidelines on how we assess the requirement for a real estate license applicant to be fit and proper. This work provides certainty to the sector about what it takes to be a licensed real estate professional, and confidence to the public that the sector is well-regulated.”
REA reported that over the 2021/22 period, it has received 271 formal complaints – that’s a 15% drop on the preceding year.
“While the reduction in complaints may reflect a slowing market, it also indicates improved conduct by real estate professionals,” Moffat said.
The number of licensed real estate professionals remained high during the financial year, with total active licensees reaching 16,866 on June 30, up 3.7% on the year before.
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“With the number of licensees increasing year-on-year, REA continues to support all licensees to maintain high standards of conduct and prevent consumer harm, including through a regularly updated Continuing Professional Development programme,” Moffat said.
Consumer awareness of REA also increased over the year, with consumers seeing the value of the regulator’s guidance and resources to prevent harm and understand regulatory obligations as well as how to safely participate in real estate transactions.
“REA aims to see people confidently engaging in fair transactions with trusted real estate professionals,” Moffat said. “We seek to have an impact by informing and empowering real estate consumers across New Zealand’s diverse communities, and by educating and engaging with licensees to enable them to meet their regulatory obligations. We are encouraged by the results we were able to deliver in the last financial year, and we are continuing to build on this momentum.”
