From 1 May 2026, a significant change to New Zealand’s privacy laws came into force with the introduction of Information Privacy Principle 3A (IPP3A) under the Privacy Amendment Act 2025.

While it applies across many industries, the real estate sector is one of the areas likely to feel the impact most directly. Real estate agencies regularly collect personal information indirectly — through referrals, buyer databases, online portals, open homes, property enquiries, and third-party marketing systems.

“Privacy and transparency are becoming increasingly important in real estate, particularly as agencies rely more heavily on digital systems and shared data platforms,” explains James Shepherd, General Manager of Raine & Horne New Zealand.

“These changes are really about giving consumers greater confidence in how their information is handled. For agencies, it’s an opportunity to strengthen trust, modernise processes, and ensure clients feel informed every step of the way.”

As a result, many agencies are now reviewing their internal processes and updating their Agency Agreement documentation to better reflect the new privacy requirements.

What Does IPP3A Actually Change?

Previously, New Zealand’s Privacy Act mainly focused on situations where an organisation collected personal information directly from the individual themselves.

IPP3A expands this by introducing new obligations when information is collected indirectly. In simple terms, if an agency obtains personal information from someone other than the individual concerned, they may now need to notify that person about the collection.

This notification must generally include:

• That the information has been collected
• Why it is being collected
• Who may receive the information
• Who holds the information
• Whether collection is required by law
• The person’s right to access and correct their information

The Office of the Privacy Commissioner says the change is designed to improve transparency and give people greater visibility over how organisations use their data.

Why Real Estate Agencies Are Affected

Real estate agencies often work with information that has not been provided directly by the individual.

Examples include:

• Buyer details shared internally within a franchise network
• Enquiries forwarded from property portals
• Information received from vendors about prospective purchasers
• Database contacts imported from previous CRMs
• Referral leads from mortgage brokers or developers
• Property ownership data sourced from external systems

Under IPP3A, agencies now need to consider whether individuals have been properly informed when this information is collected or shared.

This has created a need for many agencies to revisit not only their privacy policies, but also their operational workflows and contractual documentation.

How Agency Agreements Are Changing

One of the biggest practical changes is the increased importance of privacy wording within real estate Agency Agreements.

While Agency Agreements already contain privacy clauses, many agencies are now strengthening these sections to ensure vendors understand:

• What information may be collected
• How information may be shared within the agency or franchise group
• How buyer information may be handled
• Which third-party platforms may receive information
• How long information may be retained
• The agency’s obligations under the Privacy Act 2020 and IPP3A

In many cases, the wording is becoming more explicit and easier to understand, rather than relying on broad legal language.

Some agreements are also introducing clearer acknowledgements around:

• Digital marketing systems
• CRM and database usage
• Automated advertising platforms
• Cross-office data sharing
• Anti-money laundering checks
• Compliance and verification requirements

This is partly about compliance, but also about reducing future disputes around consent and transparency.

Increased Focus on Buyer Data

Historically, many privacy discussions in real estate focused primarily on vendors. IPP3A puts more attention on buyers and prospective buyers as well.

For example, if a buyer’s details are added to a database after attending an open home, receiving a referral, or enquiring through a third-party website, agencies may now need to ensure the buyer has been properly notified about how their information will be used.

This is particularly relevant as agencies continue expanding their use of:

• Email marketing
• Automated property alerts
• CRM segmentation
• Retargeting advertising
• AI-assisted marketing tools

More Pressure on Internal Systems

For many agencies, the real challenge is not the wording itself — it is operational consistency.

Agencies now need clearer systems around:

• Where personal information came from
• Whether notification has occurred
• Who has access to data
• How information is stored and shared
• When records should be deleted

This may require updates to CRM processes, onboarding procedures, staff training, and compliance documentation.

Larger franchise groups may also need to review how information flows between offices and departments.

Why This Change May Ultimately Be Positive

Although compliance updates can feel like extra administration, the broader direction of IPP3A reflects growing public expectations around transparency and trust.

“Buying or selling property already involves sharing a significant amount of personal information,” observes Shepherd.

“Clearer privacy obligations help reinforce trust between agencies, vendors, and buyers, which is ultimately good for the industry as a whole.”

Real estate transactions involve highly sensitive personal and financial information. Agencies that communicate clearly about privacy practices are likely to build stronger confidence with both vendors and buyers.

Clearer privacy processes can also help reduce complaints, misunderstandings, and reputational risk.

In an industry where trust plays a major role in winning listings and referrals, stronger privacy practices may become a competitive advantage rather than simply a compliance requirement.

What Are the Next Steps for Real Estate Agencies?

IPP3A, which came into effect on 1 May, represents one of the more significant privacy updates for New Zealand businesses in recent years, and real estate agencies are among the sectors most directly affected.

The changes are already influencing how Agency Agreements are written (with Raine & Horne New Zealand having already distributed updated agreement documents across its New Zealand network), how buyer information is managed, and how agencies approach transparency around data collection and sharing.

The agencies that adapt early are likely to be in a much stronger position as privacy expectations continue evolving across the New Zealand property industry.

Interested in simplifying your real estate operations and joining one of Australasia's biggest brands? Find out more!