Code of Professional Conduct and Client Care 2012

The Code of Professional Conduct and Client Care 2012 was established by the Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012 and came into effect on 8 April 2013.

These Rules revoke the Code of Professional Conduct and Client Care 2009.

How the Code has been applied in decisions

The following sections of the Code have been referenced in Complaints Assessment Committee (CAC) decisions made to date:

  • [4]   Interpretation   0 references
  • [4.1] Customer is a party or potential party to a transaction and is not a prospective client or client   1 reference
  • [4.2] Terms have the same meaning as in the Act   0 references
     
  • [5]   Standards of professional competence   210 references
  • [5.1] Must exercise skill, care, competence and diligence   316 references
  • [5.2] Must have a sound knowledge of the Act, regulations, rules and other relevant legislation   42 references
     
  • [6]   Standards of professional conduct.   260 references
  • [6.1] Comply with fiduciary obligations   96 references
  • [6.2] Act in good faith and deal fairly with all parties   203 references
  • [6.3] Must not engage in conduct likely to bring the industry into disrepute   127 references
  • [6.4] Must not mislead, provide false information or withhold information   297 references
     
  • [7]   Duty to report misconduct or unsatisfactory conduct   8 references
  • [7.1] Suspect another licensee guilty of unsatisfactory conduct may make a report   8 references
  • [7.2] Suspect another licensee guilty of misconduct must make a report   10 references
  • [7.3] Must not use or threaten to use the complaints or disciplinary process for an improper purpose   4 references
  • [7.4] Must report unlicensed real estate agency work   1 reference
     
  • [8]   Duties and obligations of agents   31 references
  • [8.1] Rules must be displayed and on agent's website(s)   0 references
  • [8.2] Rules must be made available on request   1 reference
  • [8.3] Ensure salespersons are properly supervised and managed   44 references
  • [8.4] Ensure licensees have a sound knowledge of the Act, regulations, rules and other relevant legislation   15 references
  • [8.5] Ensure licensees are aware of and have the opportunity to do continuing education   0 references
     
  • [9.9] Must not submit an agency or sale and purchase agreement for signing unless contains all material particulars   16 references
  • [9]   Client and customer care   161 references
  • [9.1] Must act in best interests of client and in accordance with client's instructions   127 references
  • [9.1] Must explain liability for commission to more than one agent if the person enters, or has already entered, into other agency agreements   16 references
  • [9.2] Must not engage in conduct that puts a prospective client, client or customer under undue/unfair pressure   92 references
  • [9.3] Must communicate regularly and keep the client well informed   52 references
  • [9.4] Must not mislead about price expectations   23 references
  • [9.5] Must take due care to:   12 references
  • [9.5 (a)] - ensure the security of land/business   10 references
  • [9.5 (b)] - avoid risks of damage to land /business from customers/clients who are not the owners   10 references
  • [9.6] Must not offer or market any land/business unless authorised   26 references
  • [9.7] Before an agency agreement or sale and purchase agreement is signed a licensee must:   22 references
  • [9.7 (a)] - recommend legal advice is sought   22 references
  • [9.7 (b)] - ensure that the person is aware that they can seek other advice   20 references
  • [9.7 (c)] - allow the person reasonable opportunity to obtain the advice referred to in 9.7 (a) and (b)   22 references
  • [9.8] Must not take advantage of any inability to understand relevant documents   12 references
  • [9.10] Must explain to prospective client that if they have already entered into (or enters into) other agency agreements they could be liable to pay full commission to more than 1 agent.   3 references
  • [9.11] On cancellation of agency agreement must provide list of customers that if they sell to would entitle them to commission   5 references
  • [9.12] Must not impose conditions that are not reasonably necessary to protect the interests of the agent   3 references
  • [9.13] Must seek to obtain best value for the client   0 references
  • [9.14] Must not attract more than one commission in the same transaction   1 reference
  • [9.15] Must not engage in any activity (other than real estate agency work) that would compromise the discharge of the licensee's obligations   5 references
  • [9.16] Must not use confidential client information for benefit   12 references
  • [9.17] Must not disclose client confidential information unless:   8 references
  • [9.17 (a)] - the client consents in writing   8 references
  • [9.17 (b)] - required to defend complaint/claim/allegation/proceeding by client   8 references
  • [9.17 (c) ] is required by law   8 references
  • [9.17 (d)] - disclosure is consistent with section 6 of Privacy Act 1993   8 references
  • [9.18] Disclosed information must only be to the appropriate person/entity and to the extent necessary   2 references
     
  • [10]   Client and customer care for sellers' agents   94 references
  • [10.1] Entering into an agency agreement for the grant, sale, or other disposal of land or business   3 references
  • [10.1] Must submit all written offers to the client   5 references
  • [10.2] Appraisal of land or a business must:   40 references
  • [10.2 (a)] - be provided in writing   38 references
  • [10.2 (b)] - realistically reflect current market conditions   37 references
  • [10.2 ( c)] - be supported by comparable information   37 references
  • [10.3] Where ther is no comparable or semi-comparable information this must be explained in writing   12 references
  • [10.4] Advertised price must clearly reflect pricing expectations   8 references
  • [10.5] Must explain how method of sale could impact on the benefits the licensee receives   2 references
  • [10.6] Before agency agreement is signed the licensee must explain and set out in writing:   6 references
  • [10.6 (a)] - the conditions under which commission is paid and how it is calculated and include an estimated cost of commission   5 references
  • [10.6 (b)] - when the agency agreement ends   5 references
  • [10.6 (c)] - how the land/business will be marketed and advertised and include any additional expenses   6 references
  • [10.6 (d)] - that the client is not obliged to agree to any additional expenses   5 references
  • [10.6 (e)] - that further information on agency agreements is available from the Real Estate Agents Authority   5 references
  • [10.7] A licensee is not required to discover hidden/underlying defects but must disclose known defects. If it is likely to a reasonably competent licensee that there may be hidden/underlying defects, a licensee must either:   73 references
  • [10.7 (a)] - obtain confirmation from the client, supported by evidence, that there is no defect; OR   64 references
  • [10.7 (b)] - ensure that the customer is informed of any significant potential risk so they can seek expert advice if they choose   64 references
  • [10.8] Must not continue to act for a client who directs that information of the type referred to in 10.7 be withheld   9 references
  • [10.9] Must not advertise any land or business on terms that are difference from those authorised by the client   8 references
  • [10.10] Must submit to the client all offers concerning the grant, sale, or other disposal of any land or business, provided that such offers are in writing.   12 references
  • [10.11] If employed/engaged by an agent, the licensee must provide the agent with a copy of every written offer submitted   2 references
  • [10.12] Agent muts retain for 12 months a copy of every written offer submitted   1 reference
     
  • [11]   Client and customer care for buyers' agents   1 reference
  • [11.1] Entering into an agreement for the purchase or other acquisition of land/business on the client's behalf   0 references
  • [11.2] Before a buyer's agency agreement is signed the licensee must explain and set out in writing:   0 references
  • [11.2(a)] - the conditions under which commission is paid and how it is calculated and include an estimated cost of commission   0 references
  • [11.2(b)] - when the agency agreement ends   0 references
  • [11.2(c)] - any additional services the licensee will provide or arrange and the expenses for these payable by the client   0 references
  • [11.2(d)] - that the client is not obliged to agree to any additional expenses   0 references
  • [11.2(e)] - that further information on agency agreements is available from the Real Estate Agents Authority   0 references
  • [11.3] Must not undertake real estate agency work on terms that are different from those that are authorised by the client   1 reference
  • [11.4] Must submit all written offers instructed by the client   0 references
  • [11.5] If employed/engaged by an agent, the licensee must provide the agent with a copy of every written offer submitted   0 references
  • [11.6] Agent must retain for 12 months a copy of every written offer submitted   0 references
     
  • [12]   Information about complaints   9 references
  • [12.1] An agent must develop and maintain written in-house complaint procedures. These must be available to clients/customers   12 references
  • [12.2] Must ensure that prospective clients/customers are aware of these procedures before they enter into any contractual agreements   5 references
  • [12.3] Must ensure that prospective clients, clients and customers know they can access the Real Estate Agents Authority (REAA) complaint process and that using in-house procedures does prevent them from making a complaint to the REAA.   5 references
  • [12.4] A licensee employed/engaged by an agency must advise the agent within 10 working days of becoming aware of:   1 reference
  • [12.4(a)] - a complaint made against them; the decision of the Complaints Assessment Committee and any order made against them   1 reference
  • [12.4(b)] - if the matter goes to the Tribunal, the decision of the Tribunal and any order made by the Tribunal   1 reference
  • [12.5] If employed/engaged by a different agent at the time of conduct complained about the licensee must also provide the information in 12.4 (a) and (b) to that agent within 10 working days of becoming aware of the complaint.   0 references
     
  • [13]   The Real Estate Agents Act (Professional Conduct and Client Care) Rules 2009 are revoked.   0 references