A licensed salesperson also manages rentals for her agency and secretly keeps part of an owner's rent. The managing agent says the REA cannot act because residential property management is not real estate agency work. Is that right?
Correct Answer
A) No; misconduct for disgraceful conduct is not limited to agency work.
Section 72 (unsatisfactory conduct) applies only to real estate agency work, but s 73(a) makes a licensee guilty of misconduct if their conduct would reasonably be seen as disgraceful, with no such limit. The REA's own guidance says it can look at disgraceful conduct outside real estate work. Dishonestly keeping a client's money would qualify.
Why This Is the Correct Answer
Section 73(a) reaches a licensee's disgraceful conduct even outside real estate agency work.
Why the Other Options Are Wrong
Option B: Yes; the Act covers only conduct during real estate agency work.
Section 73(a) turns on conduct that is disgraceful, without limiting it to agency work.
Option C: Yes; only the Tenancy Tribunal can deal with a licensee's rental dealings.
The Tribunal deals with tenancy disputes, but the REA can still act on a licensee's disgraceful conduct.
Option D: No; residential property management became licensed work on 1 December 2025.
No such change was made; residential tenancies remain outside the s 4 definition of transaction.
Background Knowledge for Property Management
Source: https://www.legislation.govt.nz/act/public/2008/0066/latest/whole.html
Exam Tip for Property Management
Unsatisfactory conduct needs agency work; disgraceful misconduct does not.
Common Mistakes to Avoid on Property Management Questions
- •Assuming a licensee's property management is beyond the REA's reach in every case.
More Property Management Questions
How long does a landlord have to lodge a bond with Tenancy Services after receiving it from a tenant?
Which of the following is a mandatory requirement for all rental properties under the Healthy Homes standards?
A periodic tenancy began 8 months ago and the rent has never been raised. If the landlord gives written notice today, when is the earliest a rent increase can take effect?
A property manager discovers a tenant has been subletting rooms without permission for 6 months, generating significant income. The head tenant is otherwise compliant and rent is current. What factors would most influence the Tenancy Tribunal's decision on termination?
Under the Residential Tenancies Act 1986, what is the most a landlord can charge as a general bond (not counting any separate pet bond)?
- → Which of the following is NOT a mandatory requirement for tenancy agreements under the Residential Tenancies Act?
- → How much notice must a landlord give a tenant before conducting a routine property inspection?
- → A tenant has given 21 days' notice to terminate a periodic tenancy but wants to leave 5 days early. What must happen for this to be legally acceptable?
- → A tenant claims bond refund for $1,200 but the landlord disputes $400 for carpet cleaning. The tenant disagrees and applies to the Tenancy Tribunal. What happens to the bond during this dispute?
- → How often may a landlord carry out routine inspections during a tenancy?
- → A landlord wants to increase rent for a periodic tenancy. What is the minimum notice period they must give?
- → During a property inspection, a property manager discovers the tenant has installed a spa pool without permission. What is the most appropriate first step?
- → By what date did all private rental properties in New Zealand have to comply with the healthy homes standards?
- → A property manager conducts an inspection and finds the tenant has installed a heat pump without permission. The tenancy agreement prohibits alterations without consent. What can the landlord legally require?
- → During a property inspection, a landlord notices the tenant has changed the locks. Under what circumstances is this legally permitted?
People Also Study
Property Law & Legislation
56 questions
Agency Practice
89 questions
Sale & Purchase Process
63 questions
Professional Conduct & Ethics
46 questions
Related Study Resources
Previous Question
A landlord whose rental tested above the maximum acceptable level wants the same company that did the detailed test to do the decontamination. What do the 2026 regulations say?
Next Question
A new tenant is asked to pay four weeks' rent in advance on top of the bond. How much rent in advance can a landlord lawfully require?