As a real estate professional in New Zealand, your role extends far beyond simply matching buyers with sellers or landlords with tenants. You act as a gatekeeper to one of the most fundamental human needs: housing. Consequently, understanding protected classes and anti-discrimination laws is a critical component of your real estate education and a heavily tested subject on the national licensing exam. If you are preparing for your qualification, mastering this topic is essential. For a broader look at your study journey, be sure to read our Complete NZ Real Estate Salesperson Exam Exam Guide.

In this guide, we will break down the Human Rights Act 1993, how it intersects with the Real Estate Agents Act 2008 (REAA), and the practical scenarios you are likely to encounter on your exam and in your daily practice.

The Human Rights Act 1993: The Foundation of Fair Housing

In New Zealand, the overarching legislation that governs discrimination is the Human Rights Act 1993 (HRA). Under the HRA, it is illegal to treat someone unfairly or less favourably than another person in the same or similar circumstances based on specific personal characteristics. These characteristics are known as "prohibited grounds of discrimination" or protected classes.

For the NZ Real Estate Salesperson Exam, you must memorise the 13 prohibited grounds of discrimination. They are:

  • Sex (including pregnancy and childbirth)
  • Marital status (including being single, married, in a civil union, or a de facto relationship)
  • Religious belief
  • Ethical belief (lack of a religious belief)
  • Colour
  • Race
  • Ethnic or national origins (including nationality and citizenship)
  • Disability (physical, psychiatric, intellectual, or psychological)
  • Age (applies to anyone aged 16 and over)
  • Political opinion
  • Employment status (including being unemployed, on a benefit, or on ACC)
  • Family status (including having or not having children, or being a sole parent)
  • Sexual orientation

When studying for the exam, it is helpful to understand how these questions are structured. You can learn more about the testing style in our exam format and structure overview.

Common Discrimination Complaints in NZ Housing

To contextualise the importance of these laws, the chart below illustrates the estimated distribution of housing-related discrimination inquiries received by the Human Rights Commission in recent years.

Estimated Housing Discrimination Inquiries by Protected Class (NZ)

Real Estate Authority (REA) Code of Conduct Obligations

As a licensed real estate salesperson, you are bound by the Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012 (often referred to as the Code of Conduct). Several rules directly address your obligations regarding discrimination:

  • Rule 5.1: A licensee must exercise skill, care, competence, and diligence at all times.
  • Rule 6.1: A licensee must comply with all relevant law, including the Human Rights Act 1993 and the Residential Tenancies Act 1986.
  • Rule 6.2: A licensee must not engage in any conduct that would bring the industry into disrepute.

A common trap for new agents—and a frequent exam scenario—is the concept of "following client instructions." While you have a fiduciary duty to obey the lawful instructions of your client (the vendor or landlord), you cannot obey unlawful instructions. If a client instructs you to discriminate against a protected class, complying with that instruction makes you legally liable alongside the client.

Discrimination in Property Management vs. Property Sales

Discrimination laws apply to both the sale of property and the granting of tenancies, though they often manifest differently in practice.

Residential Tenancies

Under the Residential Tenancies Act 1986 (RTA), it is an unlawful act for a landlord or their agent to discriminate against a prospective tenant based on any of the prohibited grounds under the Human Rights Act. When conducting a property investment analysis for a landlord, you must remind them that they cannot restrict their tenant pool based on race, family status (e.g., refusing single mothers), or employment status (e.g., "No WINZ beneficiaries").

Note on exceptions: The HRA does provide a narrow exception for shared residential accommodation. If a person is looking for a flatmate to share the house they currently live in, they are legally allowed to choose someone based on sex, religious belief, etc. However, this exception does not apply to standalone tenancies managed by real estate agents.

Property Sales

In property sales, discrimination often occurs subtly. A vendor might say, "I only want to sell my family home to a nice young Kiwi couple, not foreign investors." While "foreign investor" relates to the Overseas Investment Act, saying "Kiwi couple" implies ethnic or national origins, and "young" implies age discrimination. Just as you must disclose physical property defects or legal easements and encumbrances, you must legally and ethically navigate vendor instructions without breaching human rights legislation.

Practical Exam Scenarios and How to Handle Them

The NZ Salesperson Exam will test your practical application of these laws. Here are two scenarios you should know how to navigate:

Scenario 1: The Discriminatory Vendor

The Situation: You are appraising a property. The vendor tells you, "I will sign the agency agreement with you, but you must promise not to show the house to anyone of [Specific Ethnicity] descent. I don't want them living in my neighbourhood."

The Correct Action: You must inform the vendor that their instruction breaches the Human Rights Act 1993 and the REA Code of Conduct. You must state clearly that you cannot accept such an instruction. If the vendor insists, you must decline the listing. Accepting the listing under those conditions would result in severe disciplinary action by the Real Estate Authority Disciplinary Tribunal.

Scenario 2: The "Professional Couples Only" Advertisement

The Situation: You are drafting marketing copy for a high-end rental apartment and the landlord asks you to write "Perfect for professional couples only. No children."

The Correct Action: You must advise the landlord that this wording discriminates based on employment status, marital status, and family status. Advertising a property in a way that indicates an intention to discriminate is illegal. You should suggest alternative wording that focuses on the property's features rather than the demographic of the desired tenant (e.g., "One-bedroom apartment ideal for a quiet lifestyle").

Summary for Exam Preparation

To succeed on the exam, remember these golden rules:

  1. Memorise the 13 protected classes under the Human Rights Act 1993.
  2. Understand that following a client's discriminatory instruction is not a valid legal defence. You must refuse unlawful instructions.
  3. Recognise that advertising copy must focus on the property, not the preferred personal characteristics of the buyer or tenant.
  4. Know that breaches can lead to prosecution by the Human Rights Commission, the Tenancy Tribunal, and the Real Estate Authority.

Frequently Asked Questions (FAQs)

Can a vendor choose not to sell to someone based on their age?

No. Age (for anyone 16 and over) is a protected class under the Human Rights Act 1993. A vendor cannot refuse to sell a property to a legally capable buyer simply because they feel the buyer is "too young" or "too old."

What should I do if a landlord gives a discriminatory instruction?

You must politely but firmly explain that the instruction breaches the Human Rights Act and the Residential Tenancies Act. Inform them that you are legally bound by the REA Code of Conduct and cannot follow the instruction. If they refuse to withdraw the instruction, you must decline or terminate the agency agreement.

Are there any exceptions to the Human Rights Act in real estate?

There are very few exceptions, but one notable one is for shared residential accommodation (flatmates). If a landlord or head-tenant is looking for someone to share the home they currently reside in, they are permitted to discriminate based on certain grounds (like sex or age) to ensure living compatibility. However, licensed agents managing standalone tenancies cannot use this exception.

How does the Real Estate Authority (REA) penalise discriminatory behaviour?

Discriminatory behaviour is considered a serious breach of the REA Code of Conduct. Penalties handed down by the Real Estate Agents Disciplinary Tribunal can include formal reprimands, fines of up to $100,000 for an agency, suspension of your real estate licence, or complete cancellation of your licence.

Which protected class covers someone who is unemployed or receiving a government benefit?

This falls under "Employment status." It is illegal to refuse to rent or sell a property to someone solely because they are unemployed, receiving a Work and Income (WINZ) benefit, or on ACC compensation.