For aspiring real estate professionals in Tauranga, Rotorua, Whakatāne, and the wider region, passing the licensing exam requires more than just knowing how to appraise a house or draft a contract. A critical, heavily tested component is your understanding of fair housing practices. Mastering the rules around protected classes and discrimination is essential not only for passing your test but for maintaining your license under the Real Estate Authority (REA) Code of Conduct. To see how this topic fits into your broader study plan, be sure to review our Complete Bay of Plenty Property Market Exam Exam Guide.
The Legal Framework: Human Rights in New Zealand Real Estate
Unlike some international jurisdictions that rely on specific "Fair Housing" acts, New Zealand’s anti-discrimination laws in real estate are governed primarily by the Human Rights Act 1993. Specifically, Section 53 of the Act makes it unlawful to discriminate against anyone in the provision of land, housing, or other accommodation.
As a real estate agent or property manager in the Bay of Plenty, you are bound by this Act, alongside the Real Estate Agents Act 2008 and the Residential Tenancies Act 1986 (RTA). The REA Code of Conduct explicitly states that licensees must not engage in any conduct that breaches the Human Rights Act. Failing to uphold these standards can result in severe penalties from the Real Estate Agents Disciplinary Tribunal (READT), including license cancellation.
The 13 Protected Classes in New Zealand
The Bay of Plenty Property Market Exam will test your ability to identify the 13 prohibited grounds of discrimination. You must know these by heart. It is illegal to refuse to sell, rent, or provide real estate services to someone based on their:
- Sex (including pregnancy and childbirth)
- Marital status (including being single, married, in a civil union, or de facto relationship)
- Religious belief
- Ethical belief (lack of a religious belief)
- Colour
- Race
- Ethnic or national origins
- Disability (physical, psychiatric, intellectual, or psychological)
- Age (from 16 years onwards)
- Political opinion
- Employment status (including being unemployed or on a benefit)
- Family status (including having or not having children)
- Sexual orientation
Direct vs. Indirect Discrimination
Exam questions frequently ask candidates to distinguish between direct and indirect discrimination. This is one of the common mistakes candidates make when sitting the exam.
- Direct Discrimination: Occurs when a person is treated unfairly explicitly because they belong to a protected class. Example: A landlord tells a property manager, "I don't want to rent my Rotorua flat to anyone on the jobseeker benefit."
- Indirect Discrimination: Occurs when a seemingly neutral policy, rule, or practice disproportionately and negatively impacts a protected class without a valid justification. Example: A property management firm requires a continuous 5-year full-time employment history to qualify for a rental, which indirectly discriminates against individuals who took time off for childbirth (Sex/Family Status) or those with certain disabilities.
Bay of Plenty Specific Scenarios for the Exam
The examiners love to use local, practical scenarios to test your applied knowledge. Here are three Bay of Plenty contexts you might encounter on your test:
Scenario 1: Employment Status in Te Puke
The Situation: Te Puke is the kiwifruit capital of the world, attracting thousands of seasonal workers. A landlord instructs you not to rent their property to "seasonal orchard workers" because they believe their income is too unstable.
The Exam Application: This is a breach of the Human Rights Act regarding Employment Status. While a landlord or agent can assess a tenant's ability to pay rent (e.g., through credit checks or income verification), implementing a blanket ban on a specific type of employment or those on temporary contracts constitutes discrimination.
Scenario 2: Family Status in Tauranga
The Situation: You are selling a high-end apartment in Mount Maunganui. The vendor tells you, "Only show this to professional couples. I don't want families with young children viewing the property because they might damage the expensive staging furniture."
The Exam Application: This is discrimination based on Family Status. You must inform the vendor that you cannot legally comply with this instruction. If the vendor insists, you must walk away from the listing to remain compliant with the REA Code of Conduct.
Scenario 3: Age Discrimination in Papamoa
The Situation: A property developer in Papamoa is building a subdivision and wants to market it exclusively as a "Retiree Paradise," refusing to sell to anyone under the age of 60.
The Exam Application: While there are specific legal exemptions in the Human Rights Act for genuine retirement villages (registered under the Retirement Villages Act 2003), a standard residential subdivision cannot exclude buyers based on Age. You must know the difference between a legally registered retirement village and a standard housing development.
Data Insight: Discrimination Complaints in Property
Understanding where the industry struggles can help you pinpoint areas of focus for your exam. Below is a breakdown of the most common property-related discrimination inquiries and complaints reported to the Human Rights Commission.
Common Property Discrimination Complaints in NZ (%)
Best Practices for Exam Success
When tackling discrimination questions on the Bay of Plenty Property Market Exam, keep the following rules of thumb in mind:
- The Agent is Always Responsible: You cannot use the defense of "I was just following my client's orders." If a vendor or landlord asks you to discriminate, you must refuse.
- Assess the Action, Not the Intent: Discrimination does not have to be malicious. Even if a landlord thinks they are being "helpful" (e.g., "This house has too many stairs, I won't rent it to an elderly person for their own safety"), it is still illegal discrimination based on age or disability.
- Verify Your Resources: Ensure you are studying the most current versions of the Human Rights Act and REA guidelines. Check out our guide on the best study materials and resources to ensure your textbooks are up to date.
Frequently Asked Questions (FAQs)
Can a landlord in the Bay of Plenty refuse a tenant because they have a pet?
Yes. Pet ownership is not one of the 13 protected classes under the New Zealand Human Rights Act. Landlords can legally refuse pets. However, they cannot refuse a certified disability assist dog (such as a guide dog), as this would constitute discrimination based on disability.
What should I do if a vendor in Rotorua gives me a discriminatory instruction?
Under the REA Code of Conduct, you must explain to the vendor that their instruction breaches the Human Rights Act and that you cannot legally follow it. If the vendor refuses to withdraw the instruction, you must cease acting for them.
Is it discrimination to ask for proof of income for a rental property?
No. Asking for proof of income, conducting credit checks, and assessing a person's financial ability to pay rent is a standard and legal business practice. Discrimination occurs if you refuse someone because of where that income comes from (e.g., a government benefit), provided the income is sufficient to cover the rent.
How does the Residential Tenancies Act (RTA) intersect with the Human Rights Act?
The RTA explicitly references the Human Rights Act. Section 12 of the RTA states that discrimination declared unlawful by the Human Rights Act is also an unlawful act under the RTA. This means a landlord or property manager can be taken to the Tenancy Tribunal and face exemplary damages for discriminatory behavior.
Are there any exceptions to the protected classes in housing?
Yes, there are a few narrow exceptions. For example, if a landlord is renting out a room in their own home (where they currently live and share facilities like the kitchen or bathroom), the anti-discrimination provisions regarding sex, religious belief, or sexual orientation may not apply in the same strict manner. However, as an agent, you should always tread carefully and consult legal advice regarding shared accommodation exemptions.
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