Real Estate Agents Act 2008: Simple Guide for NZ Sellers and Buyers
TL;DR
● The Real Estate Agents Act 2008 sets clear rules to protect people buying and selling homes across Aotearoa. Legislation New Zealand
● The Real Estate Agents Act 2008 is overseen by the Real Estate Authority (REA). You can check licences, read guides, and make a complaint on the official Real Estate Authority (REA) website. The Real Estate Authority
● You can read the full wording of the law on the New Zealand Legislation website, and get practical advice on problems with agents on the New Zealand Government’s Consumer Protection website.
Before you sign anything with an agent, compare real performance and reviews and find your top local agent with My Top Agent – it is free for sellers.
What the Real Estate Agents Act 2008 is about
The Real Estate Agents Act 2008 was brought in to provide better protection for people dealing with property agents and to raise standards across the industry. It replaced older rules that were seen as weak and confusing, and created a clear system for licensing, behaviour, and complaints.
At its heart, this law is about trust. When you list or buy a home, you should expect honest information, fair treatment, and a simple way to raise concerns if something goes wrong.
The law is designed to protect:
● Home sellers (vendors) who trust an agent to market and negotiate the sale.
● Home buyers who rely on what the agent tells them about the property.
● The broader public, by keeping the profession to a consistent standard. The Real Estate Authority
In simple terms, it aims to:
● Make sure people trading in property are properly licensed and suitable.
● Set basic standards of behaviour, including honesty, care, and proper records.
● Provide clear paths for complaints and discipline when things go wrong.
Who regulates real estate agents in New Zealand?
Real Estate Authority (REA)
The Real Estate Authority is the independent government body that oversees real estate agents in New Zealand. It maintains a public register of licence holders, explains the code of conduct, and investigates complaints about licensed agents and agencies.
On the Real Estate Authority (REA) website, you can:
● Check whether an agent, branch manager, or salesperson is currently licensed.
● Read guides for buyers and sellers.
● Make a complaint about an agent’s behaviour.
Real Estate Agents Disciplinary Tribunal
Serious complaints about an agent’s conduct can end up at the Real Estate Agents Disciplinary Tribunal. This specialist body hears disciplinary cases and can make orders such as censuring or suspending a licence, imposing fines, or, in some cases, ordering compensation. The Ministry of Justice
You can read published decisions through the tribunal decisions section on the Ministry of Justice website.
Who needs a real estate licence – and how to check one
To carry out real estate agency work in New Zealand, a person typically needs one of three types of licence:
● Agent – usually in charge of running an agency.
● Branch manager – supervises a branch office.
● Salesperson – works for an agent and deals directly with buyers and sellers
These people must meet education and character standards, follow the code of conduct, and renew their licence regularly.
There are some limited situations where a person may not need a real estate licence. For example, some lawyers and conveyancers can do certain property work under their own laws, and private individuals can sell their own homes without being licensed. But even when an exemption applies, general consumer laws, such as the Fair Trading Act and Consumer Guarantees Act, may still protect you.
Before you sign anything, it is wise to check that your agent is properly licensed. On the Real Estate Authority (REA) website, you can search the public register using the person’s name or their agency. This will show their current licence type and status. The Real Estate Authority
Compare agents before you sign
Checking a licence tells you that someone is allowed to act, but it does not tell you how well they perform. Before you commit to an agency agreement, compare recent results, sales history, and reviews in your area, and find your top local agent through My Top Agent so you can choose based on facts, not guesswork.
Your rights when you sell or buy a home
Honest and accurate information
Agents must not mislead you about important matters such as price expectations, features of the property, known defects, or issues that could affect your decision to buy or sell. Advertising, online listings, and comments at open homes should all be fair and not deceptive.
Reasonable skill, care, and diligence
Agents are expected to carry out their work with reasonable skill, care, and diligence. In practice, this means giving realistic advice based on market information, handling offers correctly and passing them on promptly, keeping proper records, and following the code of conduct.
Good communication
You should be kept informed throughout the selling or buying process. This includes being informed of buyer interest, feedback from open homes, and any written offers. Forms and agreements should be explained in clear terms, and you should be encouraged to get your own legal advice before signing.
Money, deposits, and trust accounts
When a deposit is paid on a property, it is usually held in a trust account until agreed conditions are met. Agents and agencies must follow rules about how this money is handled, recorded, and released. If you are unsure when your deposit will be paid out or refunded, ask for it to be explained clearly and ensure it is recorded in writing.
Agency agreements and commissions
In New Zealand, the most common types of agency agreement are:
● Sole agency – one agency has the right to market and sell your property for a set time.
● General agency – more than one agency can market your property at the same time.
Whatever option you choose, the agreement should be in writing, and you should be given time to read and understand it before signing.
Before you sign an agency agreement, the agent should explain how long the agreement lasts, how and when commission will be charged, any extra marketing costs or fees, how you can end the agreement, and that you should get independent legal advice if you are unsure.
Commission is usually a percentage of the sale price, sometimes with a flat fee included. In some cases, there may also be referral payments between agents and other service providers, such as mortgage advisers. These arrangements should be disclosed to you, especially if they could influence the advice you receive.
Get help choosing the right agent.
An agency agreement can tie you to an agent for weeks or months. Before you lock anything in, compare options in your area and find your top local agent on My Top Agent so you can feel confident you have chosen well from the start.
How the law shapes the selling and buying journey
Before your property goes on the market, the agent should give you an appraisal of likely sale price based on recent sales and current market conditions. They should also talk through any known issues that ought to be disclosed to potential buyers.
All marketing, including online listings, brochures, and signboards, should give a fair picture of the property. Photos and descriptions should not hide key issues or mislead people about size, location, or features.
When a buyer makes a written offer, the agent must present it to you as soon as possible. If there are several buyers, the agent may run a multi-offer process, which should be explained clearly so everyone understands how it will work. At auctions and tenders, there are extra rules to keep the process fair, for example, around reserve prices and vendor bids.
Once an agreement is signed, the agent should help keep communication flowing as any conditions are worked through, such as building reports, finance, or title checks. While they are not your lawyer, they can help coordinate information and keep the process moving.
Complaints and disputes under the Real Estate Agents Act 2008
You can consider making a complaint if you feel you were misled about an important point, the agent did not pass on offers or information, the service fell well below what you reasonably expected, you suspect the person was not properly licensed, or you felt pressured into signing something you did not understand.
All licensed agencies must have an in-house complaints and dispute resolution process. Often, issues can be sorted out at this level through a clear explanation, an apology, or a practical solution. Check your agency agreement or the agency’s website for how their complaints process works.
You do not have to use the agency’s process before going to the regulator. You can make a complaint directly to the Real Estate Authority at any time, using the forms and guidance on the REA website. The REA may try early resolution, request a response from the agency, or refer the matter to a Complaints Assessment Committee. For more serious cases, the matter may go on to the Disciplinary Tribunal.
Possible outcomes include a reminder or direction to follow the rules more carefully, a formal finding of unsatisfactory conduct or misconduct, fines or conditions on a licence, and, in some cases, orders to pay compensation up to set limits. Justice.govt.nz
Recent reports show complaint numbers at record levels, with many relating to customer service, skill and care, disclosure, misleading advertising, and poor communication. This underlines how important it is to choose an agent who takes their duties seriously.
Plan for a better experience next time.
If you have had a rough experience with an agent, it is understandable to feel cautious about the process. Next time you are ready to sell, use real data instead of gut feeling and find your next top local agent with My Top Agent so you start off with more confidence.
Simple checklists for sellers and buyers
Seller checklist: before signing with an agent
Before you sign an agency agreement, ask yourself:
● Have I checked the agent’s licence on the Real Estate Authority (REA) website?
● Have I read and understood the agency agreement?
● Have I compared recent sales and reviews and taken steps to find my top local agent rather than just picking the first person who calls?
● Do I understand the commission, fees, and their due dates?
● Have I got legal advice?
Buyer checklist – before making an offer
Before you sign a sale and purchase agreement:
● Have I arranged a building report and, if needed, ordered a LIM report?
● Do I understand any disclosures about the property?
● Am I clear about my finances and other conditions?
● Have I asked the agent direct questions about things that matter to me?
When you are ready to double-check details or raise a concern, these official sources are a good starting point:
● Real Estate Authority (REA) website – for the public register, code of conduct, guides, and complaints.
● New Zealand Legislation website – for the full wording of the Real Estate Agents Act 2008.
● Consumer Protection website – for advice on sorting out issues with owners or agents, and how to take things further if needed. Consumer Protection
Frequently asked questions
Q: Do I have to pay to complain to the Real Estate Authority (REA)?
A: No. Making a conduct complaint to the REA is free. You only pay your own costs if you choose to get extra advice or reports.
Q: How do I know if an agent is properly licensed?
A: Check the REA public register on the Real Estate Authority website. It shows if a person is licensed, what type of licence they hold, and any public disciplinary history.
Q: What happens if my agent isn’t licensed?
A: Most people doing real estate agency work must be licensed. If you think someone is working without the right licence, report it to the REA and get legal advice about your own position.
Q: Can the REA cancel my sale and purchase agreement?
A: No. The REA looks at agent behaviour, not your contract. Only you, the other party, or a court can usually change or cancel a signed agreement, so you’ll need legal advice about that.
Q: How long do I have to complain after something goes wrong?
A: There isn’t a strict short deadline, but it’s best to complain as soon as you can. The longer you wait, the harder it can be to gather clear evidence.
Q: How long does a complaint usually take?
A: It depends on how complex the issue is. Simple matters can be resolved in weeks; more serious or contested cases, especially those going to the Tribunal, can take months.
Q: Can I change my agent if I’m unhappy with their service?
A: Often yes, but it depends on your agency agreement. Check how long it runs, how to cancel, and any risk of double commission. Talk to the agency and get legal advice if you’re unsure.
Q: Does the law apply to private sales?
A: The professional rules mainly apply to licensed agents, not owners selling their own homes. However, other laws, like the Fair Trading Act, can still apply to misleading or deceptive behaviour in private sales.
Conclusion: Know Your Rights, Back Yourself, and Choose Well
Buying or selling a home is a big step, and the Real Estate Agents Act 2008 is there to give you clear rights and better protection along the way. When you understand the basics, how agents must behave, what should be explained before you sign, and how the complaints process works, it’s much easier to spot when something doesn’t feel right and speak up early.
You don’t need to become a legal expert. Use the official government sites for details, ask questions until you’re comfortable, and get independent legal advice when you need it. Most agents want to do the right thing, and the law helps set a fair standard for everyone.
If you’re getting ready to sell, don’t leave your choice of agent to chance. Compare real results, reviews, and local experience to find your top local agent with My Top Agent, so you can start your next move with someone you can genuinely trust.
Important: This guide gives general information only. It is not legal advice. If you are unsure about your situation, please speak with a lawyer or other qualified adviser.
