Real estate watchdog fields 320 complaints in first five months

[muppet]

Real estate watchdog fields 320 complaints in first five months

12:21 PM Wednesday Apr 14, 2010
Authority board chairperson Kristy McDonald, QC. Photo / Supplied


The newly formed Real Estate Agents Authority (REAA) has received more than 320 complaints in its first five months of operation.
It has also fielded over 17,000 phone and email inquiries.
The authority was set up to license industry workers and offer an independent, transparent complaints process.
"These complaints come from both consumers and licensees and range from minor through to serious," authority board chairperson Kristy McDonald, QC, said.
The authority was operating under new legislation which meant processing complaints took time to ensure each was properly investigated, she said.
"It was difficult for us to predict the number of complaints we would receive accurately, given there was no data available about complaints made under the 1976 Act.
"The large number of complaints received since implementation of the new Act is significant and highlights there was a need for this new legislation with its consumer protection focus."
When a complaint is received it goes before a Complaints Assessment Committee (CAC), comprised of one authority board member and a lawyer. If the committee finds a complaint is valid it has a range of powers from censuring an individual through to fining them up to $10,000 (or $20,000 for a company).
If the offense is deemed serious it can be put before the Real Estate Agents' Disciplinary Tribunal which can cancel an agent's licence, ban them from working for an agency, impose a fine of up to $15,000 (or $30,000 for a company) or order compensation payment of up to $100,000 to the complainant.
The CAC have so far considered 11 cases. One was referred to the tribunal, eight dismissed, one not released and one -- the case of an agent who sent a condolence card with an attached house valuation to a widow - resulted in a censure.
Ms McDonald said the key to the new system was its transparency.
"The industry has shifted from a self-regulating system that was often seen as not open and transparent to a new system and provides an independent assessment of those complaints and where findings can be made public."
- NZPA
http://www.nzherald.co.nz/business/n...ectid=10638341

[brokerman]

Most of these will turn out to be spurious complaints as happened in the UK when the FSA took over mortgage brokers. Same will happen here next year, give people the channel to complain about anything and they will. The reality is that very few complaints are genuine and of those that are, 90% can be dealt with locally. What we have here is a sledgehammer approach, typical of a nanny state mentality!

[speights boy]

What we have here is a sledgehammer approach, typical of a nanny state mentality!

The independent Banking Ombudsman was an important addition to that industry.

I know in my case, once I told my bank I had sent all my paperwork to the Ombudsman they paid up 100% of my claim immediately. Previously they had offered only 50%

I feel an independent and transparent complaints mechanism is important to service industries, and the RE industry doesn't have the best record out there.

SB

[spurner]

I've heard some details about a number of cases currently before the new watchdog, and some of the things agents are doing are pretty shocking, particularly the ones involving agents deliberately underselling a property to another agent.

I think and hope it will go someway to tidying the industry up, and at least there is now some recourse against them. Better than a slap on the wrist with a wet bus ticket under the old system anyway.

[leapy]

17,000 phonecalls and emails received in 5 months. 320 complaints received. 11 processed. 8 dismissed. Under-resourced? Over-neurotic public? Lots of now-nervous real estate agents?

[brokerman]

17,000 phonecalls and emails received in 5 months. 320 complaints received. 11 processed. 8 dismissed. Under-resourced? Over-neurotic public? Lots of now-nervous real estate agents?

All of that and more, I wonder who paying the bill?!.........................

[Hound]

A good agent is worth their weight in gold. However, not all are of this standard. Which isn't a problem for old hands, such as ourselves, but can cause terrible stress on first home buyers, & infrequent sellers.

An old trick, that I have seen used numerous times is for a senior agent to instruct/coach the rookie agent to do all the dirty work. The senior agent keeps his (& it usually is "his") hands clean. It's all done behind closed doors, so we may see more of this as rookie agents are hung out to dry. The censuring of the agency is the best way to clean the industry up.

[eri]

An old trick, that I have seen used numerous times is for a senior agent to instruct/coach the rookie agent to do all the dirty work. The senior agent keeps his (& it usually is "his") hands clean. It's all done behind closed doors, so we may see more of this as rookie agents are hung out to dry. The censuring of the agency is the best way to clean the industry up.

there's a word for that

mentoring

tho my spell-check doesn't agree that it's a word

[Winston001]

Most of these will turn out to be spurious complaints as happened in the UK when the FSA took over mortgage brokers.

The reality is that very few complaints are genuine and of those that are, 90% can be dealt with locally.

I'm curious - how do you know few complaints are genuine? Are you suggesting for example, other agents encourage people to make false complaints to hobble competitor agents?

Also could you supply a link to the FSA data on spurious complaints?

[eri]

you'd have to define "false complaint"

a false complaint to the police means you basically lied to get someone else in trouble and is punishable with a jail term, as 1 nz mum is finding out currently

but a complaint about someone who pretends to be a 1st time home buyer wanting to buy your house for 20% below CV so they can be in the same street as their friend, but who actually is a REA intending to flick it on for 20% over CV to a prearranged buyer is a valid complaint in my book

it may not be against the law, and/or it may not be provable to the satisfaction of a judge but that doesn't make it a "false complaint"