Buying or selling a home is one of the biggest financial decisions most New Zealanders will ever make, and the agent handling that transaction carries a serious responsibility to everyone involved.
When that responsibility is mishandled, the consequences can be significant. The Real Estate Authority (REA) received 487 formal complaints in the year to 30 June 2025, a 35% rise on the year before, with misleading conduct, poor disclosure, and inadequate customer service driving the bulk of those complaints.
Whether you’re a property owner who feels let down by your agent, a buyer who suspects something wasn’t disclosed, or an agent trying to understand where the professional boundaries lie, this article breaks down the most common reasons REA complaints arise and what’s behind each one.
Why Do Real Estate Agents Get Complaints?
Licensed real estate agents in New Zealand are required to follow the Real Estate Agents Act 2008 and the Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012, commonly known as the Code of Conduct.
The Code sets out minimum standards for how agents must treat their clients and the public. When conduct falls short of those standards, anyone involved in a real estate transaction can make a complaint to the REA.
The REA then assesses whether the conduct could amount to unsatisfactory conduct or, in more serious cases, misconduct under the Act.
Misleading Conduct and False Advertising
Misleading conduct is one of the most frequently cited reasons for REA complaints, and it was confirmed as a top complaint theme in the REA’s 2025 Annual Report.
A licensee must not mislead a customer or client, provide false information, or withhold information that should by law or in fairness be given to them.
In practice, this kind of complaint tends to arise in property advertising, where listings contain inaccurate descriptions of the property’s features, size, condition, or zoning.
It also commonly arises when an agent makes verbal assurances to a buyer that turn out to be incorrect, such as claiming a property has no known defects when the agent was aware of such issues or should have enquired further.
Even advertising that creates a misleading overall impression, without containing an outright false statement, can fall foul of the Code. It can also lead to court proceedings for misleading and deceptive conduct under the Fair Trading Act 1986.
Failure to Disclose Material Information
Failing to disclose adverse material information about a property is treated seriously by the REA, especially when a buyer suffers financial loss as a result. In many cases, the complaint can lead to a finding of misconduct and a referral to the Tribunal for compensation.
However, a finding of unsatisfactory conduct can also result in a referral to the Tribunal for compensation.
An agent has a positive duty to disclose known defects about a property. They also have a duty to make further enquiries if they suspect that a property may be subject to defects, even if a vendor fails to disclose any defects or no one directly asks them about it.
Common examples of defects that should be disclosed include awareness of weathertightness issues, unpermitted building work, borer infestations, subsidence issues, flooding history, or zoning disputes.
The Code requires agents to act fairly towards all parties in a transaction, not just the vendor who will pay their commission. When it comes to disclosing known defects to buyers, agents should err on the side of caution.
Conflicts of Interest
Conflicts of interest are tightly regulated under sections 134 to 137 of the Real Estate Agents Act 2008, and complaints in this area are taken seriously by the REA.
A conflict arises when a licensee’s personal or professional interests compete with those of their client.
The most obvious example is when an agent or someone related to them wants to purchase a property that the agent is listing. In that situation, the agent must obtain the client’s written consent using the prescribed form and arrange for a valuation at the agent’s expense before proceeding with any transaction.
Agents are also required to disclose in writing any financial interest they or a related person may have in a transaction, including where the agent stands to benefit from the sale beyond their standard commission.
Rule 9.14 of the Code of Conduct also prohibits an agent from receiving more than one commission from the same transaction, meaning an agent can’t take a fee from both the buyer and the seller.
When agents fail to properly disclose these interests or proceed without consent, the REA is likely to uphold a complaint if made. If that happens, the agent may be liable to pay a fine, face censure, or be referred to the Tribunal for further orders, including paying compensation to the complainant.
Poor Communication and Keeping Clients in the Dark
Poor communication was flagged as a particularly common complaint theme by the REA in its 2025 Annual Report, and it’s easy to see why.
The Code of Conduct requires a licensee to communicate regularly and in a timely manner, keeping the client well informed of all matters relevant to their interests. The licensee should also keep their supervising agent regularly updated.
In a real estate transaction, this means keeping a vendor updated on offers received, feedback from open homes, and any developments with prospective buyers.
Buyers also expect to be kept informed of key steps in the process, particularly when they’re in negotiations or awaiting a decision on a conditional offer.
When clients feel ignored, kept in the dark, or left to chase their agent for basic updates, the result is often a formal complaint, even if the underlying transaction proceeds without legal issue. In many cases, the REA may investigate if the agent is being actively supervised by its agency to ensure that they are complying with their duties.
Not Acting in the Client’s Best Interests
Real estate agents have a core duty to act in their clients’ best interests, and falling short of that obligation is one of the most impactful complaint categories the REA deals with.
This obligation means proactively advising the client of their options, flagging potential risks, and putting the client’s position ahead of the agent’s own commercial interests.
A complaint in this area often arises when a vendor believes their agent pushed for a quick sale at a low price, potentially to close a commission sooner rather than achieve the best market outcome for the client.
The Code also requires agents to recommend that prospective clients seek legal advice before signing key documents, including agency agreements and sale and purchase agreements.
If an agent fails to make that recommendation or actively discourages a client from seeking independent advice, that is likely to feature in a complaint.
Failing to Present All Offers
Every offer made on a property must be presented to the vendor, regardless of whether the agent thinks it’s worth considering.
It is not the agent’s role to filter out offers they consider unlikely to proceed or too low to be worth the vendor’s attention.
Vendors have the right to make that call themselves, and when agents pre-screen offers without authority, they are more likely to face a complaint.
This issue sometimes arises in competitive multi-offer situations, where an agent may focus attention on a preferred buyer and not communicate other offers to the vendor promptly or at all.
It also arises when an agent has a relationship with a buyer, and there is a perceived incentive to steer the transaction in their favour.
How Can Real Estate Agents Avoid REA Complaints?
Most REA complaints don’t come out of nowhere. They tend to reflect patterns of conduct that, with care and consistency, are entirely avoidable.
Understanding the common complaint triggers covered in this article is a strong starting point, but putting systems in place to address them is what actually protects an agent’s licence and reputation.
Keep Thorough Records of Everything
Good record keeping is the single most practical thing an agent can do to protect themselves in a complaint.
This means keeping written records of all key conversations with clients, including instructions given, decisions made, and any advice provided about pricing, marketing, or offers.
When a complaint is investigated, the REA and any Complaints Assessment Committee will look closely at the evidence trail, and an agent with clear, organised records is in a far stronger position than one relying on memory alone.
Records should cover every stage of the transaction, from the initial agency agreement through to settlement, and should be retained well after the transaction is complete.
Both licensees and their supervisors should endeavour to keep good records, including updating their supervision plans regularly..
Know Your Disclosure Obligations Before Every Transaction
Many complaints stem from agents not fully understanding the scope of what they’re required to disclose, rather than a deliberate intention to mislead.
The obligation to disclose material information extends beyond obvious structural defects and covers anything a reasonable buyer would consider important in deciding whether to purchase or what price to pay. While agents are not expert engineers or builders, they should look for ‘red flags’ and make further enquiries when the circumstances reasonably require them to do so.
If there’s any doubt about whether something needs to be disclosed, the safer course is always to disclose it.
Agents should also be aware of their specific obligations under the Code of Conduct and the Real Estate Agents Act 2008 and ensure that they stay up to date with changes to legislation and REA guidance.
Communicate Proactively, Not Just Reactively
The Code of Conduct sets a clear standard: agents must communicate regularly and in a timely manner, keeping clients well informed of matters relevant to their interests.
In practice, this means not waiting for a client to chase you for an update. A quick call or message after an open home, a prompt summary when an offer comes in, and honest updates when interest is slow are all part of meeting that obligation. Keeping a record of follow up calls and messages is also prudent for good record keeping. Some real estate agencies have dedicated software to help them keep good records.
Agents who set clear expectations with clients at the start of a campaign about how and how often they’ll communicate tend to generate far fewer complaints, since clients know what to expect and don’t feel left out of their own transaction.
Present Every Offer Without Filtering
Every offer received on a property must go to the vendor, and it’s not the agent’s call to decide which ones are worth considering.
Even if an offer is well below the asking price or comes with conditions that seem unlikely to be met, the vendor is entitled to see it and make their own decision.
Agents should document when offers were received and when they were presented to the vendor, as this creates a clear record that all offers were handled properly and in a timely way.
Recommend Legal Advice at the Right Moments
The Code of Conduct requires agents to recommend that clients seek independent legal advice before signing key documents, including agency agreements and sale and purchase agreements.
This is a straightforward obligation, but it gets overlooked in busy transactions or when a purchaser or an agent is keen to move things along.
Making this recommendation clearly and recording an acknowledgement as a further term of a sale and purchase agreement is good practice to protect the prospective purchaser and the agent.
When agents take steps to protect the parties’ interests,rather than just trying to close the deal, they build trust and help keep complaints from arising in the first place.
Need Help With an REA Complaint in New Zealand?
REA complaints can have serious consequences, whether you’re the person making one or the agent responding to it. Taking the right steps early is likely to have a meaningful impact on the outcome.
At Evolution Lawyers, we advise clients and real estate professionals across New Zealand on matters involving REA complaints, appeals against CAC and Tribunal decisions, professional conduct issues, and property disputes. Contact our team of real estate agent lawyers today to discuss your situation and find out how we can help.
Frequently Asked Questions
What is the REA and what does it do?
The Real Estate Authority (REA) is the independent government agency that regulates licensed real estate professionals in New Zealand under the Real Estate Agents Act 2008. It licenses agents, oversees the Code of Conduct, handles complaints about agent behaviour, and publishes decisions from Complaints Assessment Committees and the Disciplinary Tribunal. Anyone involved in a real estate transaction can make a complaint to the REA if they believe an agent has breached their professional obligations.
What are the most common reasons for REA complaints in New Zealand?
According to the REA’s 2025 Annual Report, the most common complaint themes are customer service issues, skill and care failures, poor disclosure, and misleading advertising. Specific conduct that regularly attracts complaints includes failing to disclose known property defects, misleading buyers or sellers, poor communication with clients, conflicts of interest that aren’t properly disclosed, and failing to present all offers to a vendor.
What can happen to a real estate agent if a complaint is upheld?
If a Complaints Assessment Committee finds unsatisfactory conduct, penalties can include a formal censure, fines, or mandatory training. The CAC can also refer a complaint to the Real Estate Agents Disciplinary Tribunal, which can order compensation of up to $100,000 for financial loss. For the most serious cases involving misconduct, the Tribunal has the power to suspend or cancel the agent’s licence entirely.
Can I make a complaint to the REA if I suffered a financial loss because of an agent?
Yes. If an agent’s conduct caused you financial loss, you can make a complaint to the REA and, if the complaint proceeds to the Disciplinary Tribunal, compensation of up to $100,000 may be ordered. You may also have grounds for separate civil action depending on the circumstances. It’s advisable to seek legal advice early to understand all of your options and the steps involved in pursuing a complaint effectively.
Do real estate agents have to disclose conflicts of interest in New Zealand?
Yes. Sections 134 to 137 of the Real Estate Agents Act 2008 set out strict rules around conflicts of interest. Agents must disclose in writing any financial interest they or a related person has in a transaction, and must obtain the client’s written consent on a prescribed form if a related person intends to purchase a property the agent is listing. Failing to disclose a conflict of interest is a breach of the Act and is likely to result in a complaint finding.
How long does the REA complaints process take?
The REA aims to complete its early resolution process within 10 working days and expects the full Complaints Assessment Committee process to be completed within 90 working days. However, complex cases can take longer, and matters that are referred to the Real Estate Agents Disciplinary Tribunal will take additional time beyond that. The REA is required to keep all parties informed of expected timeframes and progress throughout the complaint process.