On which ground can a complaint to the Real Estate Authority be closed without an inquiry?
Correct Answer
D) The complaint is frivolous or vexatious, or not made in good faith
The Registrar (s 74(3)) or a Complaints Assessment Committee (s 79(2)) can decide that a complaint need not be pursued if it is frivolous or vexatious or not made in good faith. Other grounds include that it is not serious enough or inconsequential, that another agency should deal with it, or that it has been resolved to the complainant's satisfaction.
Why This Is the Correct Answer
The Registrar (s 74(3)(b)) or a Complaints Assessment Committee (s 79(2)(c)) can decide that a complaint that is frivolous or vexatious or not made in good faith need not be pursued. Other grounds include that it is inconsequential or better handled by another agency.
Why the Other Options Are Wrong
Option A: The licensee has apologised, even though the complainant is not satisfied
A complaint can be closed as resolved only when it is resolved to the complainant's satisfaction (s 74(3)(d)); an apology alone is not enough.
Option B: The transaction involved a property worth less than $100,000
The Act has no value threshold for complaints; a complaint about any agency work can be made.
Option C: The licensee has no previous complaints or disciplinary findings
A clean record may be mitigation, but it is not a ground for refusing to consider a complaint.
Deep Analysis of This Professional Conduct Question
The Authority itself does not decide complaints. Since the 2018 amendments, and as amended in 2025, a complaint first goes to the Registrar, who can decide it need not be pursued on the grounds listed in s 74(3); otherwise a Complaints Assessment Committee decides whether to inquire (s 79). These filters stop the process being used to harass licensees and keep resources on complaints that matter. A complainant can appeal a Committee's decision to the Tribunal under s 111.
Background Knowledge for Professional Conduct
Real Estate Agents Act 2008: s 74(3) (Registrar may decide a complaint is not serious enough, is frivolous, vexatious or not in good faith, belongs with another agency, or has been resolved to the complainant's satisfaction), s 79(2) (Committee may dismiss, treat as inconsequential, frivolous or vexatious, refer elsewhere, or inquire), s 80 (no further action for delay or inconsequential matters). The regulator's statutory name is the Real Estate Agents Authority; it operates as the Real Estate Authority (Te Mana Papawhenua).
Memory Technique
Remember FVG: Frivolous, Vexatious, or not in Good faith. These sit alongside other screening grounds such as inconsequential matters and referral to another agency.
When an option relies on the licensee's record, an apology alone, or the property's value, reject it. Look for the statutory screening grounds.
Exam Tip for Professional Conduct
Screening grounds come from ss 74(3) and 79(2): frivolous, vexatious, not in good faith, inconsequential, another agency, or resolved to the complainant's satisfaction. Value thresholds and clean records are distractors.
Real World Application in Professional Conduct
A disgruntled vendor files multiple complaints against their agent after a property fails to sell at their unrealistic asking price. The complaints allege 'unprofessional conduct' but provide no specific examples or evidence, merely expressing general dissatisfaction. The REAA may refuse to investigate these complaints as they appear vexatious (intended to harass) and lack substance (no specific allegations supported by evidence). This protects the agent from harassment while ensuring genuine complaints receive proper attention.
Common Mistakes to Avoid on Professional Conduct Questions
- •Thinking minor issues can't be investigated
- •Believing transaction value affects investigation decisions
- •Assuming past disciplinary history provides immunity
- •Confusing procedural compliance with frivolous complaints
Related Topics & Key Terms
Key Terms:
More Professional Conduct Questions
According to the REA Code of Professional Conduct and Client Care, what is the primary duty of a real estate licensee?
A licensee receives confidential information about their client's financial difficulties. When can this information be disclosed to third parties?
During a complaint investigation, what is a licensee's obligation regarding cooperation with the Real Estate Authority?
A licensee discovers that a competing agent has made false statements about a property they have listed. What is the most appropriate course of action?
A licensee is charged with misconduct for serious breaches of the Code. During the disciplinary hearing, they argue that their actions were directed by their branch manager. How will this affect the Tribunal's decision?
- → A licensee keeps working while a complaint against them goes to the Real Estate Agents Disciplinary Tribunal. If misconduct is proved, what can the Tribunal do?
- → A licensee working for Agency A learns confidential information about a client’s financial difficulties. They then move to Agency B and are asked to give market advice on that client’s property to a prospective buyer who is a client of Agency B. How should they handle this situation?
- → A licensee working for Agency A learns confidential information about a client's urgent need to sell due to financial difficulties. The licensee then moves to Agency B and uses this information to approach the former client with a lower offer through a contact. This scenario primarily involves a breach of which professional obligation?
- → An agent receives two written offers on the same property at the same time: one from the agent's personal friend at $50,000 below the asking price, and one from an unknown buyer at the asking price. The agent presents only the friend's offer. Under the Real Estate Agents Act 2008, this most likely amounts to:
- → According to the REA Code of Professional Conduct and Client Care, what is the primary purpose of the Code?
- → In what situation would the Real Estate Agents Disciplinary Tribunal have jurisdiction to hear a complaint against a former licensee?
- → James, a branch manager, becomes aware that one of his salespeople has been providing misleading information to clients about settlement timeframes. Under the REA Code, what is James's primary obligation?
- → Under section 121 of the Real Estate Agents Act 2008, what must appear on every advertisement an agent publishes?
- → When can a licensee disclose confidential client information to a third party?
- → A client asks their real estate agent to not disclose a known flooding issue to potential buyers. What should the agent do?
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