Frequently Asked Questions

17 November 2009

The Real Estate Agents Licensing Board is no longer the licensing body for the Real Estate Industry. The Real Estate Agents Act 1976 is replaced by the Real Estate Agents Act 2008.  All applications and enquiries should now be made to the Real Estate Agents Authority ["REAA"]  You can contact the REAA on 0800367732 or www.reaa.govt.nz

The information on this site is being retained for historical purposes only and should in no way be treated as the current requirments for licensing

Q.   How do I become a real estate salesperson?
A.   To participate in the real estate industry in New Zealand you must hold a certificate of approval issued by the Real Estate Agents Licensing Board.  Please refer to the How Do I Apply section of this site for a comprehensive guide to becoming certificated.
     
Q.   Can I renew my salespersons certificate?
A.   No.  The renewal of a certificate of approval can only be made by your employer between January 15 and March 30.  If an application is not received prior to March 30 your certificate will lapse and a fresh application for a certificate of approval will be required.
     
Q.   What if I am bankrupt?
A.  

If you already hold a current certificate of approval as a real estate salesperson and you are adjudicated bankrupt this does not prevent you from continuing in the real estate industry.  However, you should obtain the written approval from the Official Assignee if you are engaged as an independent contractor.

If you hold a real estate agents licence and are adjudicated bankrupt you would no longer be eligible to hold a licence.
     
Q.   Can I be a shareholder in a real estate company or a principal officer without any shares?
A.   Yes.  The Act is silent with regard to shareholding.  Even if you are not eligible to hold a licence you may still be a shareholder in the company.  However, if the principal officer is not the majority shareholder the Board would need to sight an employment agreement between the company and the principal to ensure that the effective control is vested in that person.
     
Q.   If I am no longer using my licence what are my options?
A.  

You may make voluntary surrender of the licence pursuant to S.31 of the Real Estate Agents Act 1976.  This should be confirmed in writing to the Board and the licence document returned. Once you have surrendered the licence it cannot be re-activated.  A fresh application would need to be made.

     Or

You may retain the licence at your home address if you are no longer actively trading, however you will still incur all fees associated with holding a licence. You may also wish to contact the National Office of the REINZ to take advantage of the Audit Regulations which may require only one nil return per year.
     
Q.   What if my branch manager resigns?
A.   Under the provisions of S.54(5) of the Act there is a period of 4 weeks in which the branch may continue to operate without an approved branch manager in effective control.  Continued operation after that period would be in breach of the legislation.
     
Q.   If I am taking over an existing business what do I do?
A.   There are many different situations that can arise from a takeover of an existing business.  It is recommended that you contact the Board’s office to discuss what is appropriate in your situation.
     
Q.   What do I do when someone leaves my employment?
A.   In accordance with S.50 of the Act the certificate must be returned to the Board’s office within 7 days.
     
Q.   How do I close a branch office?
A.   When an office closes you need to do the following:-
  • advise the Board in writing of the date of the office closure
  • return the licence document for endorsement
  • confirm any transfer of salespeople to another of your offices
  • return the certificates of approval for any salespeople no longer in your employment
     
Q.   What happens if the principal officer resigns?
A.   Under the provisions of S.54(5) of the Real Estate Agents Act 1976, there is a period of only four weeks in which the company can operate without an approved Principal Officer in effective control. Thereafter, the company needs to cease trading until the situation has been remedied.
     
Q.   If I hold a licence, can I work for another firm as a salesperson?
A.   You may work for another firm and continue to hold a real estate agents licence so long as that licence is no longer trading or employing salespeople.  You will also be required to hold a current certificate of approval as a real estate salesperson. The fact that you hold a licence is not sufficient to entitle you to work for another firm without the required certification.
     
Q.   Can I lodge an objection to a licence application?
A.  

Yes, within one month from the date of the 1st publication, anyone other than the Real Estate Institute of NZ is able to lodge an objection to the grant of a real estate agents licence, on one or more of the following grounds:

  • That by virtue of the provisions of S.17 of the Act the applicant is not eligible to apply for or obtain a licence;
  • Where the applicant is a person other than a company, that the applicant is not, by reason of his or her personal character or financial position, a proper person to be the holder of a licence;
  • Where the applicant is a company, that it is not by reason of its financial position or of the nature of any other business carried on or to be carried on by it, a proper person to be the holder of a licence;
  • Where the applicant is a company, that any person who will be an officer of the company if the application is granted is not, by reason of his or her personal character or financial position, a proper person to be an officer of a licensee company.
     
Q.   How do I object to an application for a licence.
A.   A notice of objection can be filed under S.20(2) of the Act with the Registrar of the Real Estate Agents Licensing Board, P O Box 99881, Newmarket, Auckland and should state, with brief particulars, the  ground/s on which the objection is made.
     
Q.   What happens if I have an application pending with the Licensing Board that has not been determined prior to 17 November 2009
A.   Your application will still be processed by the Licensing Board and if approval is granted the Board will notify the Real Estate Agents Authority.  The REAA will then issue you with your licence.