With the introduction of the new Real Estate Agent Authority it would be good advice to keep file notes on conversations between yourself and either the Vendor or Purchaser. By keeping simply file notes it can save the he said, she said, they said or you told me. Being proactive and not deactive is so important with the introduction of the new legislation affecting Real Estate Agents in New Zealand. It can also safe guard you from any claims against your Professional Indemnity Insurance. It is a practice in our office to keep file notes on all conversations. 
Tag: New Real Estate
During the course of contractural negotiations a Vendor/Purchaser or Agent may make statements about the property being offered for sale. Misrepresentation could be made verbally, in marketing or advertising material, or in writing. Generally speaking a misrepresentation is a false statement relating to present or past fact. The Agent and Vendor must be very careful about claims they make about a property. This is going to be more important than ever under the new Real Estate Agents Act, as accountability is going to be high on the Agenda for the new Board.
Here are but a few examples:
1. A statement to a Purchaser that the government valuation of a property was $21,000 where infact is was $15,500
2. A Vendor who covered up defects in the foundations of a property by filling in and papering over cracks was misrepresenting the state of the property.
Common sense must prevail, and a Purchaser should also make all due enquiries prior to entering into any Agreement for Sale and Purchase.
Cheers Kim
