System overhaul welcomed

The southern Real Estate Institute representative has welcomed an overhaul of the industry's complaints system, saying the changes will allow more serious complaints to be dealt with more quickly.

"From an industry perspective, I am delighted as it is going to keep costs under control," Dunedin regional area spokeswoman Liz Nidd said this week.

As of the start of this month, the Real Estate Agents Authority (REAA), the independent crown entity which looks after licensing and complaints in the industry, introduced a "triage" approach to inquiries and complaints.

Until now, all concerns raised about agents have been treated as formal complaints, investigated and considered by a complaints assessment committee. The committee refers the most serious matters to the Real Estate Agents Disciplinary Tribunal, which is presided over by a judge.

However, under the new approach, concerns will be assessed by REAA staff to determine the most appropriate response, REAA chief executive Keith Manch said in an industry newsletter.

There will be four levels of response - providing information, issuing a compliance letter or warning, referral to an alternative dispute resolution hearing and enforcement through the complaints assessment committee or disciplinary tribunal.

Complainants and agents would still be able to ask for a full investigation and hearing if they were unhappy with the preliminary response.

A dispute resolution hearing would be suggested if a concern was only between a real estate agent and the complainant, did not involve issues of wider public interest and was capable of being resolved, Mr Manch said.

Each inquiry or complaint would be assigned a case manager who "owned" the case through to resolution.

The REAA was established in January last year and is funded by industry levies. Levies amounted to about $6 million in the 2010-11 financial year.

Mrs Nidd said the majority of the complaints made were of a "lesser nature" and it had proved "costly and time-consuming" to carry out full investigations.

Moving to the triage system was sensible, as it would enable time and resources to be directed to more serious complaints and should enable these to be resolved more quickly, she said.

Complainants would "absolutely" still get a fair deal, she said.

"The REAA was established for one reason only - consumer protection - and that will not change. I feel the REAA will still come down just as heavily on those agents whose conduct is outside the [2008 Real Estate Agents] Act."



Real estate complaints
Real Estate complaints in year to June 30, 2011. -

• Total complaints/allegations received: 700.
• Under investigation: 299.
• Withdrawn: 39.
• Not investigated by Complaints Assessment Committee: 111.
• Determinations made by committee: 510.
• Finding of unsatisfactory conduct: 102.
• No further action recommended: 381.
• Charges referred upwards to Disciplinary Tribunal: 27.
• Appeals lodged: 80.
• Appeals withdrawn: 17.

- Source: Real Estate Agents Authority



- allison.rudd@odt.co.nz

 

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