House Transactions Required to be Fair and Honest

People considering selling their homes are being advised by Barfoot & Thompson to work with their agent to ensure they understand the requirements of the new Real Estate Act to prevent them being liable to future claims from the buyer.

“The new Act requires the person selling a house to be upfront about what they know or suspect,” says Peter Thompson of Barfoot & Thompson.

“It means being honest about issues such as past or present water tightness, work undertaken which may have required a permit, and knowledge about upcoming work on neighbouring properties or in the immediate area.

“For their own protection, it is important sellers get their agent to explain their obligations to them fully.

“Agents in turn are required to inform potential buyers of possible issues.

“For the first time too, buyers will have to acknowledge in writing they understand the financial obligations into which they are entering.

“Contrary to what many assume, the new Act is not just about cleaning out unscrupulous agents and providing an independent and transparent complaints process.

“All three parties – seller, buyer and agent - are required to deal fairly and honestly with each other.”

Mr Thompson said innovations such as a cooling off period during which clients can cancel an agent’s agreement, greater disclosure around marketing costs and documentation which assists clients and buyers raise any concerns they have about their agent or the transaction will be welcomed by the public.

No agent can now sell a house without the seller first signing a sales agreement. The new Act requires the agent to provide written documentation around marketing costs; in-house and the new independent authority’s complaints procedures; and booklets prepared by the new authority covering the right and obligations of sellers, buyers and agents.

Ends
Barfoot & Thompson knows Auckland best.  It is the city’s leading real estate company, selling around one in three Auckland residential homes, significantly ahead of all other competitor brands.
For further information, contact Peter Thompson, Barfoot & Thompson, telephone
09 307 5523 or 027 453 5931.  www.barfoot.co.nz

Released on behalf of Barfoot & Thompson by Network PR (Dennis Lynch),
telephone 09 379 3154. www.networkpr.co.nz