Nicole McKee says real estate agents will avoid five-year ban for CPD breaches

Associate Justice Minister Nicole McKee says real estate agents will no longer face a disproportionately harsh five-year disqualification for some continuing professional development and fee-payment breaches, after Parliament passed legislation changing the occupational regulation settings. The Beehive release says the Regulatory Systems (Occupational Regulation) Amendment Bill removes the automatic five-year disqualification period for failing to complete CPD requirements.

The issue became publicly visible through the case of Janet Dickson, a real estate agent who faced the prospect of being unable to work for five years after choosing not to complete a compulsory CPD topic that she did not consider relevant to her work. McKee said she had also made clear to the Real Estate Authority that CPD requirements should be relevant to the job of real estate agents. The Government is presenting the change as a fairness measure rather than a weakening of professional standards.

For the property sector, the distinction matters. Real estate agents operate in a regulated market because they handle large transactions, client money, conflicts of interest, disclosure duties and conduct obligations. Buyers and sellers need confidence that agents are trained and accountable. But a penalty system also has to fit the conduct it is punishing. Losing the right to work for five years over a CPD or fee breach can look excessive when compared with more serious misconduct.

The new law does not mean agents can ignore professional development. CPD remains part of maintaining competence and public trust. The point is proportionality. Regulators need tools that can respond to non-compliance without producing outcomes that are out of step with the seriousness of the breach. That could include warnings, shorter suspensions, targeted training, fines or other sanctions, depending on the circumstances and the rules that remain in place.

The case also raises a wider question about mandatory training across professions. CPD is useful when it improves practical knowledge, updates people on law changes, addresses repeated conduct problems or lifts standards in areas where consumers are exposed. It becomes harder to defend when practitioners see it as generic, irrelevant or disconnected from their actual work. A credible CPD system should be specific enough that people can see why it exists.

For home sellers and buyers, the change is unlikely to alter the day-to-day process of dealing with an agent. The more important public interest is whether the Real Estate Authority and the sector use the change to keep professional development focused on issues that affect consumer protection. Property transactions are stressful, expensive and often unfamiliar to households. Good agent conduct still matters, and training can support that when it is designed well.

McKee's announcement should therefore be read in two parts. The immediate legal change removes a penalty the Government says was too severe. The longer-term challenge is making sure real estate regulation remains credible to the public while fair to people working in the industry. If CPD becomes more relevant and penalties become more proportionate, the system may earn more trust from both consumers and agents.