The CEO of a Tauranga real estate company is supportive of new rules governing the real estate sector, saying it will create more transparency within the industry. The tough new rules came into force on Tuesday under the Real Estate Act 2008.

Eves Realty Limited and Bayleys CEO Ross Stanway.

Ross Stanway, CEO of Eves Realty Limited and Bayleys, says the new laws are aimed at lifting standards and protecting clients within the real estate industry.
'The bottom line is, for companies that have been operating best practice standards under the previous regime, these new laws will not in fact represent a major shift in the way they operate,” says Ross.
Strict penalties will be handed down to real estate sales people who break the new rules which are now law.
Changes under the new rules allow a listing to be terminated by either the real estate agency or the vendor after a maximum 90 days.
A real estate sales person must also provide an appraisal of a property before an agreement can be given to list that property for sale.
'This will provide a range for the property owner to get an idea of where their property may stand in the current market at that point in time. It's an appraisal at the time of listing and is not a valuation.
The process of listing, marketing and selling a property is now more detailed, more structured and more rigorous,” says Ross.
A Residential Property Agency Agreements guide needs to be given to the property owner with the listing document (Agency Agreement) to market the house is signed.
A Sale and Purchase Agreements Guide is to be given at the time of consideration of a sale and purchase agreement.
Ross says a new complaints process has been established through the Real Estate Agent's Authority as a last resort for people who have been unable to get complaint resolution from the company they have been involved with.
'There is now much more responsibility placed on the individual sales people because in some instances they become more individually liable,” says Ross.