What to Do if Your Agent Loses Their Licence
The real estate industry operates under strict regulations to ensure that transactions are conducted ethically and professionally. Occasionally, an agent may lose their licence due to misconduct or failure to adhere to these standards. If you find yourself in a situation where your real estate agent has lost their licence, it is important to know how to proceed. This article outlines the steps you should take to protect your interests and ensure a smooth continuation of your property transaction.
1. Understand the Reason for Licence Loss
The first step is to understand why the agent lost their licence. This information can help you assess the situation and determine the potential impact on your transaction. Agents can lose their licences for various reasons, including unethical behaviour, falsifying records, or failing to comply with industry regulations. For example, an Auckland agent lost her licence after falsifying records, which led to significant financial implications for a home buyer.
2. Review Your Contractual Agreement
Carefully review your contractual agreement with the agent or agency. This document outlines the terms of your relationship and any obligations that both parties must fulfil. Pay particular attention to clauses related to termination or breach of contract, as these will guide your next steps.
Key Points to Consider:
- Termination Clauses: Check if there are any clauses that allow you to terminate the agreement due to the agent’s loss of licence.
- Obligations and Responsibilities: Understand what responsibilities the agency has in the event of an agent’s licence loss.
3. Contact the Real Estate Agency
Reach out to the real estate agency the agent was affiliated with. Agencies are responsible for ensuring that their agents operate within legal and ethical boundaries. They should provide guidance on how to proceed and may assign a new agent to handle your transaction.
Questions to Ask:
- Replacement Agent: Will the agency assign a new agent to continue your transaction?
- Continuity of Service: How will the agency ensure that your transaction proceeds smoothly without disruption?
4. Seek Legal Advice
Consulting with a lawyer who specialises in real estate can provide clarity and protect your interests. A legal professional can help you understand your rights, assess any potential risks, and advise on the best course of action.
Legal Considerations:
- Contractual Obligations: A lawyer can review your contract and advise on any obligations or potential breaches.
- Compensation Claims: If the agent’s misconduct has caused financial loss, your lawyer can guide you on how to seek compensation.
5. File a Complaint with the Real Estate Authority
If you believe that the agent’s actions have negatively impacted your transaction, you can file a complaint with the Real Estate Authority (REA). The REA is responsible for regulating real estate professionals and handling complaints about misconduct.
Complaint Process:
- Documentation: Gather all relevant documentation, including contracts, correspondence, and any evidence of misconduct.
- Formal Complaint: Submit a formal complaint to the REA, detailing the issues and providing supporting evidence.
6. Monitor the Transaction
While the situation is being resolved, it is crucial to closely monitor your property transaction. Stay in regular contact with the agency and any new agent assigned to your case to ensure that your interests are protected.
Steps to Take:
- Regular Updates: Request regular updates on the progress of your transaction.
- Documentation: Keep detailed records of all communications and developments related to your transaction.
Conclusion
If your real estate agent loses their licence, it is important to take proactive steps to protect your interests and ensure the continuity of your property transaction. By understanding the reason for the licence loss, reviewing your contractual agreement, contacting the agency, seeking legal advice, filing a complaint with the REA, and closely monitoring the transaction, you can navigate this challenging situation effectively. For more information and guidance, consult with legal professionals and refer to resources provided by the Real Estate Authority.