Professional Conduct and Client Care Rules 2012

What it is

The Professional Conduct and Client Care Rules 2012 are secondary legislation made under section 14 of the Real Estate Agents Act 2008. They came into force on 8 April 2013. The Rules set the day-to-day standard of conduct and client care that licensees — agents, branch managers, and salespersons — are required to meet.

The Rules are administered by the Real Estate Authority. They are commonly referred to as the Code of Conduct. Breach of a Rule can result in a finding of unsatisfactory conduct or misconduct, with sanctions up to licence cancellation.

What they cover

• The general standard of skill, care, competence, and diligence (Rule 5).
• Duties to clients and to other parties (Rule 6) — including the fiduciary duty (6.1), the good-faith and fair-dealing duty owed to all parties (6.2), the duty not to bring the industry into disrepute (6.3), and the duty not to mislead (6.4).
• Duties to clients, customers, and consumers (Rule 9) — including best interests (9.1), no undue pressure (9.2), legal and technical advice (9.7), single-commission limit (9.14), and no compromising outside activity (9.15).
• Specific client care obligations (Rule 10) — most notably the appraisal duty (10.2), the explanation-before-agency-agreement duty (10.6), and the disclosure-of-known-defects duty (10.7).

What they give you

• A concrete, enforceable set of duties you can point to when your agent's conduct falls below standard.
• A best-interests standard (Rule 9.1) that prioritises the client's interests, subject to law.
• Specific appraisal and pre-signing duties (Rules 10.2 and 10.6) that give vendors a written basis for commission, marketing, and termination expectations.
• A basis for complaint to the Real Estate Authority if the licensee breaches any of the Rules.

Key Rules, quoted and explained

Rule 5.1 — Skill, care, competence, and diligence

"A licensee must exercise skill, care, competence, and diligence at all times when carrying out real estate agency work."

Our reading: This rule is the baseline. Where a licensee fails to exercise reasonable competence — for example, by passing on a report the licensee has not read or plainly misunderstanding their client's instructions — Rule 5.1 is a first ground to consider. It works alongside section 28 of the Consumer Guarantees Act 1993, which imposes a similar duty on services generally.

Rule 6.1 — Fiduciary obligations

"A licensee must comply with fiduciary obligations to the licensee's client."

Our reading: Fiduciary obligations at common law include loyalty, good faith, and avoidance of conflicts. Rule 6.1 imports those obligations into the licensee relationship. The licensee's personal or agency interests cannot lawfully override the client's.

Rule 6.2 — Good faith and fair dealing with all parties

"A licensee must act in good faith and deal fairly with all parties engaged in a transaction."

Our reading: This is the dual-duty rule. The licensee owes good faith and fair dealing not only to the client (vendor) but also to the other party (buyer) and any prospective buyers. It does not displace the client's priority — that sits under Rule 9.1 — but it constrains how the licensee may pursue the client's interests. Tactics that treat the buyer or prospective buyer unfairly are squarely within Rule 6.2.

Rule 6.3 — Not bringing the industry into disrepute

"A licensee must not engage in any conduct likely to bring the industry into disrepute."

Our reading: Relevant for patterns of conduct — padded inspection reports, amplified disclosures, filtered offers — that harm consumer trust even where no individual breach is immediately demonstrable. Rule 6.3 is often pleaded alongside more specific breaches.

Rule 6.4 — Not misleading; not withholding information

"A licensee must not mislead a customer or client, nor provide false information, nor withhold information that should by law or in fairness be provided to a customer or client."

Our reading: Compare with Fair Trading Act 1986 s.9. The overlap is substantial. Rule 6.4 is the rule most commonly pleaded in complaints about statements that turn out to be incorrect, whether about the property, the market, or the process. The "withhold information" limb is also the basis for challenging silence where a disclosure was in fairness required.

Rule 9.1 — Best interests of a client

"A licensee must act in the best interests of a client and act in accordance with the client's instructions unless to do so would be contrary to law."

Our reading: This is the central client-priority rule. When an agent's conduct benefits the agency's risk position, the buyer's price, or the speed of the transaction at the vendor's expense, Rule 9.1 is directly in play. It is not a balancing provision — it directs the licensee to the client's interests first, subject only to the law. Agency-agreement clauses that purport to preauthorise actions against your interests do not displace Rule 9.1.

Rule 9.2 — No undue or unfair pressure

"A licensee must not engage in any conduct that would put a prospective client, client, or customer under undue or unfair pressure."

Our reading: The practical meaning is wider than overt threats. Time-pressure framing, framed-as-required "sign today" conversations, and threats of losing a buyer are all within scope if they are not proportionate to the actual commercial reality.

Rule 9.7 — Recommending legal, technical, or other advice

"Before a prospective client, client, or customer signs an agency agreement, a sale and purchase agreement, or other contractual document, a licensee must — (a) recommend that the person seek legal advice; and (b) ensure that the person is aware that he or she can, and may need to, seek technical or other advice and information; and (c) allow that person a reasonable opportunity to obtain the advice referred to in paragraphs (a) and (b)."

Our reading: Rule 9.7 requires the recommendation to get legal advice, and reasonable opportunity to obtain it. In practice the "seek independent advice" sentence that appears in disclosure documents usually traces back to this rule. It is a genuine statutory duty; what the rule does not do is require the vendor to take the advice before every routine step, or turn "seek independent advice" into a blanket defence.

Rule 9.14 — Single commission in a transaction

"A licensee must not act in a capacity that would attract more than 1 commission in the same transaction."

Our reading: This is a narrow rule: a licensee cannot collect more than one commission from the same transaction — for example, by simultaneously acting for vendor and buyer in a way that generates two commissions. It is not the "licensee-is-a-party-to-the-transaction" disclosure rule — that duty sits in the Act itself (see REA Act 2008 ss.134–137 on licensee-as-party contracts).

Rule 9.15 — Compromising outside activity

"A licensee must not engage in business or professional activity other than real estate agency work where the business or activity would, or could reasonably be expected to, compromise the discharge of the licensee's obligations."

Our reading: Rule 9.15 is about outside business activities that create a conflict — for example, the licensee running a parallel business in a way that compromises client duties. The PCCC Rules 2012 do not contain a rule expressly requiring disclosure of referral benefits under this number. Earlier versions of this site cited Rule 9.15 for that purpose; that citation was wrong. Where a licensee fails to disclose a referral benefit, the correct grounds to consider are Rule 6.1 (fiduciary obligations), Rule 6.2 (good faith / fair dealing), Rule 6.4 (not withholding information that should in fairness be provided), Rule 9.1 (best interests), and separately Fair Trading Act 1986 s.9 (misleading or deceptive conduct). The absence of an explicit "referral benefit disclosure" rule is itself a gap in the regulatory regime, and worth noting in any complaint.

Rule 10.2 — Appraisal

"An appraisal of land or a business must — (a) be provided in writing to a client by a licensee; and (b) realistically reflect current market conditions; and (c) be supported by comparable information on sales of similar land in similar locations or businesses."

Our reading: The appraisal must be written, realistic, and supported by comparables. A verbal figure without comparables does not meet the rule. Every page quoted in Rule 10.6 flows from the Rule 10.2 appraisal.

Rule 10.6 — Pre-signing explanation and written summary

"Before a prospective client signs an agency agreement, a licensee must explain to the prospective client and set out in writing — (a) the conditions under which commission must be paid and how commission is calculated, including an estimated cost (actual $ amount) of commission payable by the client, based on the appraisal provided under rule 10.2; (b) when the agency agreement ends; (c) how the land or business will be marketed and advertised, including any additional expenses that such advertising and marketing will incur; (d) that the client is not obliged to agree to the additional expenses referred to in rule 10.6(c); (e) that further information on agency agreements and contractual documents is available from the Authority and how to access this information."

Our reading: This is the rule that requires the commission to be quoted in dollars, not percentages alone, before you sign. It also requires the agent to explain and put in writing when the agreement ends, how marketing will be done, and what the additional marketing costs will be — and that you are not obliged to accept them.

Rule 10.7 — Disclosure of defects

"A licensee is not required to discover hidden or underlying defects in land but must disclose known defects to a customer. Where it would appear likely to a reasonably competent licensee that land may be subject to hidden or underlying defects, a licensee must either — (a) obtain confirmation from the client, supported by evidence or expert advice, that the land in question is not subject to defect; or (b) ensure that a customer is informed of any significant potential risk so that the customer can seek expert advice if the customer so chooses."

Our reading: This is the basis for much of the "agent disclosure document" conversation. The duty is to disclose known defects. A generic era-based statement that every 1910s home may have contained asbestos is not a known defect — it is a statement about a category of buildings. Rule 10.7 does not require that kind of generic addition. It does require disclosure of specific known issues, or — where hidden defects are likely — either the client's evidence-backed denial or notice to the customer so that the customer can get expert advice.

Rule 10.10 — All written offers must be submitted to the client

"A licensee must submit to the client all offers concerning the grant, sale, or other disposal of any land or business, provided that such offers are in writing."

Our reading: Every written offer must go to the vendor. A licensee who filters out or declines to pass on a written offer breaches Rule 10.10 directly. Verbal offers are outside the rule, which is why vendors who suspect filtering should ask for any verbal expressions of interest to be put in writing.

How the Rules are applied in practice

The Rules are the most frequently cited source in Real Estate Authority complaint outcomes. In the 2024/25 reporting year, 487 complaints were received, 145 Complaints Assessment Committee decisions were issued, and 43 Tribunal decisions followed. Approximately 9% of licensees complained about received any adverse finding. A high proportion of adverse findings involved breaches of Rule 9.1 (best interests), Rule 6.4 (misleading / withholding information), or Rule 10 (client care).

In industry practice, the Rules are also invoked by agents to justify specific conduct to vendors — often in combination with internal agency policy. The Rules themselves do not, for example, require any particular disclosure template, yellow highlighting, or document layout. Those are agency conventions.

Common misuses and misquotations

"We need to add this — the Rules require it"

The Rules require disclosure of known defects (Rule 10.7) and accurate statements (Rule 6.4). They do not require any particular framing, additional items, or generic era-based commentary. If a clause or line is being added "because the Rules require it", ask which rule. If the rule is Rule 10.7, the defect must be known. If the rule is Rule 6.4, the statement must be accurate and not withhold information that should in fairness be provided. Nothing in the Rules requires amplification of disclosures beyond what the facts support.

"Rule 6.2 means you have to take this buyer's view seriously"

Rule 6.2 requires good faith and fair dealing with all parties. It does not displace Rule 9.1 (client best interests). The two operate together: the licensee owes the client priority on the outcome, but cannot achieve that priority by treating other parties unfairly.

"Under Rule 9.15 the referral benefit is disclosed in the agreement"

Rule 9.15 is not the referral-benefit disclosure rule — PCCC 2012 does not contain one under that number. Formulaic "we may receive a referral benefit" clauses in agency agreements are industry convention; they are not a statutory disclosure under Rule 9.15. If the referral benefit is material to whether you accept the recommendation, Rules 6.1, 6.2, 6.4, and 9.1 (plus Fair Trading Act s.9) all bear on whether the licensee's conduct in recommending the provider and not disclosing the benefit is lawful.

When you might cite these Rules

• When you disagree with agent-drafted disclosure content. Rule 9.1 + Rule 10.7: the duty is to disclose known defects in your best interest, not to amplify risk categories the agency wishes to pre-defend against.
• When a buyer's written offer does not reach you, or reaches you changed. Rule 10.10 — all written offers must be submitted to the client.
• When an agent acts unilaterally on your behalf beyond specific authorisation. Rule 9.1 + Rule 9.6 + course-of-dealing argument — unilateral action must be grounded in specific authorisation, not pre-approval in a standard-form clause.
• When a statement made by the agent turns out to be incorrect or material information was withheld. Rule 6.4 — not misleading / not withholding. Compare with Fair Trading Act 1986 s.9.
• When you were not given the commission in dollars before signing. Rule 10.6(a) — the estimated $ amount must be set out in writing based on the Rule 10.2 appraisal.

Related rules

• Real Estate Agents Act 2008 — the Act under which these Rules are made. Includes ss.134–137 on licensee-as-party contracts.
• Fair Trading Act 1986 — overlapping prohibition on misleading conduct (s.9).
• Consumer Guarantees Act 1993 — s.28 reasonable care and skill in services.
• Privacy Act 2020 — limits on what licensees can collect and disclose.

Authoritative sources

• REA Code of Conduct (authoritative text): rea.govt.nz — PCCC Rules 2012
• REA Annual Reports for complaint and outcome statistics.
• Legislation.govt.nz hosts the regulation as made; the REA-published text above is the authoritative current version.