Watchdog on prowl

Real estate agents will from tomorrow face an independent authority - rather than an in-house one - to deal with complaints.

The Real Estate Agents Authority will take over from the Real Estate Institute of New Zealand as the oversight body for the industry.

It will consist of up to seven members, at least two of whom are licensees or former licensees.

Labour MP Clayton Cosgrove, who was the Associate Minister of Justice when the new Real Estate Agents Act was passed last year, said the new authority would offer home buyers a fairer, independent and more transparent process.

"It creates an independent disciplinary tribunal to deal with serious cases which will have the ability to order the cancellation of licences and award up to $100,000 in compensation," Mr Cosgrove said.

The new legislation, which replaced a 1976 act, would also protect the reputation of good, honest real estate agents.

Mr Cosgrove said he hoped Associate Justice Minister Nathan Guy, who opposed the act before it was passed last year but who was now in charge of it, would realise it would give the public more confidence in making complaints.

- NZPA