12 October 2010 Media statement
REAAB Statement
Real Estate Agents Authority Board Chair Kristy McDonald QC said: "The REINZ as raised some important questions, which
have been the purpose of this consultation from the outset.
"REINZ has made some incorrect statements in their analysis. REINZ has claimed that income to the Authority will more
than double in the next financial year. This is not correct.
"The REINZ has also claimed that complaints numbers have dropped from an average of 55 to 14 per week. That too is not
correct. In fact, since its inception, the Authority has steadily recorded an average of around 14 complaints about
licensee conduct per week.
"The Authority is the only licensing and complaints body of its type in New Zealand, fully third party funded, with wide
ranging responsibilities and a requirement to repay Government for the costs of setting up and implementing the new
regulatory regime. Drawing comparisons to other regulatory regimes would therefore be difficult.
"Since replacing the previous industry-based complaints and disciplinary system, the Authority has been transparent
about the costs of operating a new, independent and consumer focussed regulatory regime. This is a unique piece
legislation. "
Ms McDonald added: "We are committed to keeping any costs increase to the industry sustainably low. The forecast
increase in costs reflects the high number of complaints, the amount of work required to manage them and the
requirements of the legislation. We are confident we have the balance right.
"The Authority's first priority is making sure that consumers are protected and well-informed in what for most, is the
most significant purchase they will ever make."
Up until the end of September this year, over 700 complaints and allegations about licensees had been received by the
REAA and the new Complaints Assessment Committees (CACs), have issued over 250 decisions in that time.
ENDS