The complaints process

When we receive a written complaint, we will acknowledge receipt and we may contact the person who made the complaint (the complainant) to make sure we’ve understood what the complaint is about.

We will determine if REA is able to look into the complaint (jurisdiction). REA will consider:

• If the matter relates to a potential breach of the Code of Conduct or the Real Estate Agents Act (2008)
• what the impact of any alleged breach has been
• if we've looked at the complaint before
• if the complaint is a proper use of the REA complaints process
• if the complaint would be better managed by another agency

If REA decides that we are not able to look into the complaint, you will receive a decision by email explaining why.

To decide how to deal with the complaint, we will need to understand the opinions of everyone involved. We will contact the real estate professional, share the complaint with them and request their initial comments on the complaint. Their response is optional, however it helps us decide how to manage the complaint.

We will consider the concerns raised in the complaint and the:

• harm caused or risk of harm
• seriousness of the alleged conduct
• importance of the issues to the wider public.

REA will decide whether the complaint:

• will be closed as the conduct does not raise a serious matter (inconsequential/frivolous/vexatious)
• will be referred to our resolution process
• will be referred to a Complaints Assessment Committee (CAC)
• is referred to another agency.

If the complaint is closed, REA will provide a written decision explaining why and informing people of their rights to have the decision reviewed by the Disciplinary Tribunal.

Read more about the Disciplinary Tribunal below

We aim to complete the initial assessment process within 30 working days.

All parties, the people on both sides of the complaint, have the right to have the decision reviewed by the Disciplinary Tribunal. Learn how to file an appeal with the Disciplinary Tribunal (justice.govt.nz)(external link)

The REA maintains a panel of up to 20 suitably qualified people to serve on independent Complaints Assessment Committees (CAC). From this panel, individual CACs are formed. Each CAC is made up of three people: a lawyer, a real estate industry member, and a person with knowledge and experience of consumer affairs.

When a CAC receives a complaint, it will decide whether or not to inquire into the complaint.

If the CAC decides not to inquire, it will provide a written decision explaining the reasons for that decision. This will be the end of the complaint process unless either party appeals the decision to the Disciplinary Tribunal.

If the CAC decides to inquire into the complaint, an REA investigator will be asked to investigate the complaint. They will contact the real estate professional to request their formal response to the complaint. You will be given their response, so you have an opportunity to comment on it. It’s important you provide the investigator with all the relevant information.

The information the investigator gathers is given to the CAC in a written report. The CAC members read the information provided by all parties (the parties could include you, the real estate professional, the agency or other people who have relevant information that the investigator has spoken with) and together, decide on the complaint.

The CAC will issue a formal decision on the complaint. They may decide:

• to take no further action on the complaint
• to make a finding of unsatisfactory conduct against the real estate professional
• that the conduct may be misconduct, and lay a misconduct charge with the Disciplinary Tribunal, for it to decide on the charge

If the CAC makes a finding of unsatisfactory conduct against the real estate professional, the CAC will ask each party for their views on what an appropriate penalty might be. They will consider both parties’ views when deciding on the penalty. Some of the penalties available to the CAC include:

• censure or reprimand
• requiring the real estate professional to apologise
• requiring further training or education
• ordering fees to be reduced, cancelled or refunded
• ordering an error or omission to be rectified
• a fine of up to $10,000 for an individual or $20,000 for a company
• ordering costs incurred in the complaint process be paid to the complainant
• referring the complaint to the Disciplinary Tribunal to decide whether the agent should pay compensation to the complainant for financial loss they have suffered of up to $100,000.

We expect the CAC process to be completed within 90 working days. However, complex cases may take longer. We will keep all parties informed of the expected timeframes and progress of the complaint.

All parties to the complaint have rights to appeal a CAC decision to the Disciplinary Tribunal. Learn how to file an appeal with the Disciplinary Tribunal (justice.govt.nz)(external link)

The Disciplinary Tribunal is appointed by the Ministry of Justice and is separate and independent from REA. They can:

• make any of the decisions REA or the CAC can make
• find that unsatisfactory conduct has taken place, or not
• find that misconduct has taken place, or not
• decide to take no further action on a charge

If the Disciplinary Tribunal makes a finding of misconduct against a real estate professional, they may face more serious penalties. These penalties can include:

• cancelling or suspending the real estate professional’s licence
• imposing a fine of up to $15,000 for an individual or up to $30,000 for a company
• order the real estate professional to pay compensation to the complainant of up to $100,000 for loss suffered by the misconduct

All parties to the complaint have rights to appeal a Disciplinary Tribunal decision to the High Court. There is also a further right of appeal to the Court of Appeal on questions of law.

CAC and Disciplinary Tribunal decisions are published in our decisions database(external link) and notified in the public register(external link).

Disciplinary Tribunal decisions are also published on the Tribunal website(external link)