When an agent employed by you to sell your property wishes to purchase that property for themselves,
the law affords you some additional protection.
This is in recognition that the agent may be in the stronger position in that they may be in possession
of information denied to the lay person. This stronger position has long been recognized in law and is
known as a ‘fiduciary relationship’.
Your rights are set down in Sections 134 & 135 of the Real Estate Agents Act 2008.
Section 134 states - Contracts for acquisition by licensee or related person may be
cancelled unless:
(1) The agent obtains written consent from you the client on the prescribed form.
(2) No licensee (agent) may, without the consent of the client, carry out or continue to carry out any
agency work in respect of a transaction if the licensee knows or should know that the transaction will,
or is likely to, result in a person related to the licensee acquiring the land or business to which the
transaction relates or any legal or beneficial interest in that land or business.
(3) The client’s consent is effective only if—
(a) given in the prescribed form; and
(b) the client is provided with a valuation in accordance with section 135.
(4) The client may cancel any contract—
(a) made in contravention of subsection (1); or
(b) brought about by agency work carried out in contravention of subsection (2).
(5) No commission is payable in respect of any contract of the kind described in subsection (4),
regardless of whether the client cancels the contract.
(6) The client may recover any commission paid in respect of any contract of the kind described in
subsection (4) as a debt.
(7) For the purposes of this section, a person who is the client of an agent in respect of a transaction
is also the client of any branch manager or salesperson whose work enables the agent to carry out
real estate agency work for that client.
(8) This section and section 135 have effect despite any provision to the contrary in any agreement.
Section 135 Client to be provided with valuation
(1) For the purposes of section 134(3), the licensee must give the client a valuation made at the
licensee’s expense.
(2) The valuation must have been made by—
(a) an independent registered valuer; or
(b) in the case of a business, by an independent chartered accountant.
(3) The licensee must give the client the valuation either—
(a) before seeking the consent of the client; or
(b) with the agreement of the client, within 14 days after obtaining that consent.
(4) Every consent given under section 134 without the valuation being supplied to the client in
accordance with subsection (3) is ineffective.
(5) Any contract to which the client is a party and to which the consent relates is voidable at the option
of the client if—
(a) the client gives his or her consent in accordance with subsection (3)(b); and
(b) the valuation, when supplied, is greater than the valuation specified in the prescribed form of
consent as the provisional valuation.
the law affords you some additional protection.
This is in recognition that the agent may be in the stronger position in that they may be in possession
of information denied to the lay person. This stronger position has long been recognized in law and is
known as a ‘fiduciary relationship’.
Your rights are set down in Sections 134 & 135 of the Real Estate Agents Act 2008.
Section 134 states - Contracts for acquisition by licensee or related person may be
cancelled unless:
(1) The agent obtains written consent from you the client on the prescribed form.
(2) No licensee (agent) may, without the consent of the client, carry out or continue to carry out any
agency work in respect of a transaction if the licensee knows or should know that the transaction will,
or is likely to, result in a person related to the licensee acquiring the land or business to which the
transaction relates or any legal or beneficial interest in that land or business.
(3) The client’s consent is effective only if—
(a) given in the prescribed form; and
(b) the client is provided with a valuation in accordance with section 135.
(4) The client may cancel any contract—
(a) made in contravention of subsection (1); or
(b) brought about by agency work carried out in contravention of subsection (2).
(5) No commission is payable in respect of any contract of the kind described in subsection (4),
regardless of whether the client cancels the contract.
(6) The client may recover any commission paid in respect of any contract of the kind described in
subsection (4) as a debt.
(7) For the purposes of this section, a person who is the client of an agent in respect of a transaction
is also the client of any branch manager or salesperson whose work enables the agent to carry out
real estate agency work for that client.
(8) This section and section 135 have effect despite any provision to the contrary in any agreement.
Section 135 Client to be provided with valuation
(1) For the purposes of section 134(3), the licensee must give the client a valuation made at the
licensee’s expense.
(2) The valuation must have been made by—
(a) an independent registered valuer; or
(b) in the case of a business, by an independent chartered accountant.
(3) The licensee must give the client the valuation either—
(a) before seeking the consent of the client; or
(b) with the agreement of the client, within 14 days after obtaining that consent.
(4) Every consent given under section 134 without the valuation being supplied to the client in
accordance with subsection (3) is ineffective.
(5) Any contract to which the client is a party and to which the consent relates is voidable at the option
of the client if—
(a) the client gives his or her consent in accordance with subsection (3)(b); and
(b) the valuation, when supplied, is greater than the valuation specified in the prescribed form of
consent as the provisional valuation.
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| Your Rights When Selling to Your Real Estate Agent |
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Innovation + Experience |
| PO BOX 9018, Wellington 6141 | phone: (04) 240-0124 | fax: (04) 232-4414 | email: valuer@ vcnz.co.nz Innovation + Experience |