REAL ESTATE

New Zealand Real Estate companies and sales consultants operate in a complicated and frequently unpredictable market, and they are confronted with a variety of industry-specific risks on a daily basis.

Why is it necessary for real estate agents?

You play a critical role as a real estate agent in facilitating the transaction between house buyers and sellers. You are legally liable for your daily activities, whether domestic or commercial, and you may face significant financial losses owing to legal defence costs and damages if an unhappy client initiates a lawsuit against you or your firm. The Real Estate Authority (REA) consider all complaints on whether there are any alleged breaches of the Real Estate Agents Act (2008) or Rules, and what the impact of any breach has been. Serious complaints against real estate agents are considered by a Complaints Assessment Committee (CAC). The Real Estate Agents Disciplinary Tribunal hears and determines disciplinary charges made against licensees. The charges are referred to it by the CAC.  If the Tribunal finds a licensee guilty of unsatisfactory conduct, it can impose one or more of many orders including:

• licensee to rectify error or omission at the licensee’s own expense or provide relief from the consequences of the error or omission
• impose fines on licensee up to $20,000 (but limited to $10,000 where the licensee is an individual)
• pay complainant costs or expenses incurred in respect of the inquiry, investigation or hearing by the committee

Only the right real estate liability insurance will protect you from some of or all of these exposures plus legal defence costs.

Professional Indemnity insurance

Professional Indemnity insurance is meant to protect your company from third-party legal claims and costs for damage caused by acts, errors, omissions, and breaches of professional duty. This could involve things like real estate sales, bad property management, claims of deception or misrepresentation, or a violation of the law.

The New Zealand Code

The REINZ Code of Practice requires a minimum of $1 million in professional indemnity insurance, however given the nature of the properties being sold, the level of coverage must be sufficient to protect the clients’ interests. The policy should cover all employees and agents in the company because the risks are among the highest in the industry, with individuals frequently facing multimillion-dollar claims.

What we deliver

Our skilled insurance brokers will work hard to provide trustworthy, cost-effective insurance coverage that suits the specific demands of your real estate firm, whether you deal in the residential or commercial property market.