Whose agent is this, anyway? The NZ buyer–seller agency structure

The one-sided agency default

In the US and Canada, most buyers have their own agent — a buyer's agent who works exclusively on the buyer's side of the transaction and is paid (historically) out of the commission the vendor pays. New Zealand has no equivalent default. The overwhelming majority of NZ residential sales involve one licensed agency, working for the vendor. The salesperson you meet at the open home, the salesperson negotiating your offer, and the salesperson running the auction are all working on the same side of the table. That side is not yours.

Buyer's agents do exist in NZ, but they are a small minority of the market. A genuine buyer's agent charges the buyer directly (a flat fee, a percentage, or a retainer) and contracts with the buyer under a separate agreement. If your salesperson has not produced such an agreement, they are not your agent.

What the Act actually says

Under the Professional Conduct and Client Care Rules 2012, Rule 9.1 requires a licensee to act in the best interests of their client. The client is the party who engaged the agency — almost always the vendor. The buyer is a customer under the Rules, not a client. Rule 9.2 requires licensees not to mislead any party (including customers), but the client-centred best-interest duty is specific to the client.

In practical terms: the salesperson has a legal duty to work for the vendor, and a legal duty not to deceive you. Those are not the same duty. The salesperson can legally decline to share information that would reduce the sale price, can legally frame information in ways that support the vendor's position, and can legally advocate for the vendor's interests in negotiation — as long as no statement they make is misleading.

Where the line is crossed

The salesperson's legal duties constrain specific behaviours. If a statement made to you is false or materially misleading, section 9 of the Fair Trading Act 1986 and Rule 9.2 both apply. Examples of conduct that would cross the line:

• Stating that a property has no known defects when the agent or the vendor knows of a defect.
• Stating that multiple offers are pending when they are not.
• Misrepresenting the position of another buyer (price, conditions, timing).
• Misrepresenting the vendor's position on a specific matter.
• Failing to disclose a known defect (Rule 10.7).

Where the line is not crossed, and the behaviour may still disadvantage you: withholding information that is not a known defect, framing feedback about other buyers to accelerate your decision, suggesting auction-day dynamics that favour the vendor's timing, or encouraging you to drop conditions you should keep.

The questions to ask, and the ones not to ask

Because the salesperson is not your agent, the questions that produce useful information from them are different from the questions that would work with someone neutral.

Useful questions — ones that draw out information the salesperson can answer without conflict with their client duty:

• What is the vendor's method of sale and why that method?
• How long has the property been on the market?
• Can you show me the property's building report and LIM if they are available?
• What are the chattels and fixtures included?
• Is the vendor aware of any leaks, weathertightness issues, unconsented work, or recent repairs?
• What is the vendor's preferred settlement date?
• Can I see the ADLS Agreement the vendor is using?

Questions that place the salesperson in a conflict — you can still ask, but recognise you are asking someone to act against their client:

• "What would the vendor accept?"
• "What is the lowest price the vendor will take?"
• "Should I offer more, or is this enough?"
• "Are the other offers real?"
• "What would you do if you were me?"

The salesperson may answer these questions in a way that sounds helpful. The answers are framed by their duty to the vendor. They are information, not advice.

Three things to do instead of relying on the salesperson

Because the salesperson is not structured to serve your interests, your due diligence has to come from elsewhere.

1. Engage your own solicitor early

A solicitor (or a licensed conveyancer) working for you is the closest NZ equivalent of a buyer's professional representative. They review the ADLS Agreement, interpret the title and encumbrances, advise on the conditions, and handle settlement. Their duty runs to you. Their fees are paid by you, so their interests align with yours. For a first purchase, engage the solicitor before signing anything — even before making an initial offer.

2. Commission your own inspection and LIM

A building inspection you commission is your inspector, accountable to you. A LIM you order from the council is your LIM, with the council's duty flowing to the party who requested it. A pre-sale inspection supplied by the vendor (typically arranged by the agent) is not inherently unreliable, but it is commissioned by someone whose interest is in making the property look saleable. See The building inspection report: what NZS 4306 requires and Reading a LIM.

3. Consider a buyer's agent for high-value or complex purchases

For purchases over $1–2 million, for multi-unit or investment purchases, or where the property has specific complexities, a genuine buyer's agent can pay for themselves in negotiation and due-diligence value. The buyer's agent's fee (typically 1–2% of purchase price or a flat fee) is a real cost. The question is whether their independence and market knowledge produce enough value to justify it. For straightforward single-home purchases under $1 million, most buyers find a good solicitor and self-commissioned inspection sufficient.

What about "conjunctional" arrangements?

A conjunctional sale is one where a buyer is introduced by an agent from a different agency. The conjunctional agent may describe themselves as "representing" the buyer, but they are typically paid a share of the vendor's commission — not by the buyer directly. Their duty-structure is not identical to that of a salaried buyer's agent. Ask the conjunctional agent directly: "Who pays you? Who is your client?" The answers clarify the relationship.

Summary

• Almost every NZ residential sale involves one agency working for the vendor.
• The salesperson at the open home has a legal duty to the vendor, not to you.
• The salesperson must not mislead you. They are not required to share information that would reduce the sale price or advance your position.
• Your protection comes from your solicitor, your inspections, and the ADLS contract framework — not from the salesperson.
• If you want a genuine buyer's agent, contract for one separately; do not assume the salesperson plays that role.

Where this guide sits in the section

Next: Reading a LIM: what matters most.

Rules cited: REA Act 2008, PCCC Rules 2012, Fair Trading Act 1986, ADLS Agreement for Sale and Purchase.