KEY POINTS:
Rules of ethics governing real estate agents' behaviour do more to protect agents than the public and should be ditched for a new set of instructions, according to a consumer advocate.
David Russell, former head of the Consumers' Institute, has been called in by the Real Estate Institute to review its code of ethics and is holding a series of meetings to talk to agents about reforms.
He wants sweeping improvements to the 13 rules on how real estate agents should behave.
Murray Cleland, the institute's president, said the code had served agents well for many years but was due for an update.
No preview of the findings had been disclosed, Cleland said. The code had been revised in 1999 but the sector had changed considerably since then.
The institute was ready to update the code and was pleased Russell had agreed to take on the job, Cleland said. The institute should be praised for reviewing the code and for attracting a person of Russell's standing to conduct the audit, Cleland said.
Russell said he found the rules outdated, couched in an archaic and obscure language and designed almost solely to protect the interests of agents and their institute rather than the public.
"The code of ethics is in dire need of review. The emphasis is on loyalty to the institute and the industry is looking after itself, which is a very inward-looking focus. A shift that must take place to look at the fairness and equity of the relationship between the parties - buyers, sellers, agents and society at large," Russell said.
The code was simply an outdated means to ensure self-protection and amounted to little more than an in-house rule book, Russell said, with little focus on the consumer.
He met 80 Christchurch agents, two groups of about 50 agents in Auckland and 40 in Hamilton to talk about the rules and on June 20 he plans to present the institute with preliminary findings.
Russell was scathing about the code which he said guarded the interests of agents, not consumers.
He compared the New Zealand code to the United States' National Association of Realtors' rules which he said were reviewed at least annually. That safeguarded the public, he said, and clearly set down rules to ensure behaviour was ethical. The Real Estate Institute of Australia also had a more robust code of ethics, Russell said.
"These rules are immeasurably better and state the duties to the clients and customers. In the United States, honesty is the main principle," he said.
Clayton Cosgrove, the Associate Justice Minister, will unveil reforms to the Real Estate Agents Licensing Board and the institute's disciplinary powers in the next fortnight.
THE CODE OF ETHICS
* Behave in a way that reflects well on the institute.
* Be loyal to the institute and its work.
* Follow the Real Estate Agents Act.
* Be of good character and repute.
* Never criticise another agent.
* Be courteous to other members and their deals.
* Don't make vexatious complaints against agents.
* Disclose any conflict of interest.
* Respect confidential information.
* Be professional in appraisals.
* Give full and professional service.
* Be honest and courteous.
* Be fair to all parties.
ON THE WEB
A full copy of the rules is at www.reinz.co.nz under the advice link.
