Ministry of Justice

Appeal / appellant alleged licensee failed to disclose defects with septic system and moisture and water ingress issues, and exerted undue or unfair pressure to make unconditional offer / Committee determined to take no further action / Real Estate Agents Act 2008, s892c, s111 / Professional Conduct and Care Rules 2012, r5.1, r6.2, r10.7 / HELD / Tribunal has no jurisdiction to hear further fresh allegations, or issues, on appeal / KG v Real Estate Agents Authority (CAC 2401) [2026] NZREADT 30 / Wyatt v Real Estate Agents Authority [2012] NZHC 2550 / no identifiable indicators or red flags to alert reasonably competent licensee that the septic tank may not be functioning properly/ vendor’s disclosures and purchaser’s builder inspections did not raise issues about septic tank, despite identifying several other issues / no evidence licensee on notice of a risk there may be hidden moisture or water ingress issues at time of sale of property / licensee nonetheless paid for related remediation works / purchaser confirmed installing  fireplace resolved any water ingress problems / no evidence licensee placed purchaser under undue or unfair pressure when negotiating sale of property, or that purchaser particularly vulnerable / competitive pressure ordinary feature of property market and does not, without more, amount to undue pressure / Committee’s decision confirmed / appeal dismissed

Compensation referral / unsatisfactory conduct / Committee found licensee liable for failing to identify and address potential timber rot risk in apartment and failing to comply with disclosure obligations / Real Estate Agents Act 2008, s93, s110 / Professional Conduct and Client Care Rules 2012, r5.1, r5.2, r10.7 / HELD / claimant required to establish loss suffered by reason of the conduct and a sufficient causal connection / purchaser discovered defects before settlement and negotiated $3,500 compensation from vendor / no compensable loss established for joinery repairs, flashing costs, legal expenses, or future remediation works / compensation jurisdiction is remedial and does not permit double recovery / claim for compensation dismissed / no compensation awarded

Application for review / Registrar’s determination not to pursue complaint as it was not sufficiently serious to warrant further action / applicant applied to review Registrar’s decision / Real Estate Agents Act 2008, s 74(3)(a), s 112 / HELD / notwithstanding Registrar’s erroneous factual findings, decision not to pursue complaint correct / transaction almost 10 years ago / complaint revolves around two or more conversations, real risk of unfairness in asking licensee to recall conversations so long ago / no evidence or admission as to misrepresentation by licensee, but inference based on settlement in civil proceedings in favour of purchaser / vendor’s possibly incorrect information given to licensees and status as licensed person material factors / vendor bears some responsibility for her own predicament / no public interest justification favouring pursuit of complaint as licensee no longer licensed and resides overseas / application dismissed

Appeal / purchasers discovered unremediated earthquake damage after purchase / Committee largely dismissed purchasers’ complaint, but did find licensees guilty of unsatisfactory conduct for misdescribing condition of a sewer pump / ordered censure and each licensee to pay purchasers $500 towards costs and expenses / complaint against supervisor dismissed / compensation referral adjourned pending outcome of appeals / Real Estate Agents 2008, s50, 111 / Professional Conduct and Client Care Rules 2012, rr 5.1, 6.2, 6.4, 8.3, 10.7 / HELD / licensees told purchasers all EQC repairs had been completed when this was not correct / licensees responsible for accuracy of representation to the extent they had to make reasonable enquiries and follow up any red flags as to possible unrepaired damage / red flags present in EQC report and raised by another interested party’s solicitor / failed to enquire EQC about a claim and payout for earthquake damage to retaining walls / clear from context that representation about sewer pump was second-hand information from vendor and not been personally verified / supervisor failed to request either or both licensees to make necessary enquiries / supervision must be proactive and not reactive / Committee’s decision to largely dismiss purchasers’ complaint confirmed / decision against licensees about misdescribing condition of sewer pump reversed / decision to take no further action against licensees and supervisor on misrepresentation that all EQC repairs had been completed reversed / appeals partially allowed

Penalty / misconduct / licensee failed to explain risk of weathertightness of cladding / Real Estate Agents Act 2008, s3, s110 / Professional Rules 2012, r5.1, r6.4, r10.7 / licensee censured, to provide apology, and fined $8,000 / compensation / loss on re-sale closely connected, but reduced by 25% for disclosure of weathertightness issue on re-sale and short timeframe between purchase and re-sale / expenses relating to property, weathertightness report, alternative accommodation, and expenses relating to resale, allowed but only when supported by evidence / general damages for emotional harm not allowed / discretionary reduction for contributory negligence (15%) and non-disclosure of risk of chance rather than actual weathertightness (15%) / compensation of $34,192.42 and costs of $13,228.60 awarded

Application for review / Registrar’s determination not to pursue a supplementary complaint as it was not sufficiently serious to warrant further action / applicant applied to review Registrar’s decision / application for non-party discovery / Real Estate Agents Act 2008, s 74(3)(a), s 112 / HELD / Registrar not required to conduct investigation on a complaint and has no power to require non-parties to produce documents / incumbent on complainant to put before Registrar sufficient and credible evidence to support allegations to justify referral to a Committee / insufficient evidence to support applicant’s suspicion licensees played role in prompting an IRD audit in an act of retaliation / not the role of the Tribunal on an application for review to obtain evidence that may support a complaint / application for non-party discovery dismissed

Penalty / unsatisfactory conduct / commercial property marketed with incorrect boundary and overstated carparking area / Tribunal previously found licensee breached rr 5.1 and 6.4 by failing to disclose boundary discrepancies and material information affecting use of carparks / Real Estate Agents Act 2008, s72, s110, s110A / Professional Conduct and Client Care Rules 2012, r5.1, r6.4 / HELD / conduct at upper end of unsatisfactory conduct / licensee aware of risk boundary depiction was incorrect but failed to investigate or correct marketing material / censure, training and apology warranted / fine of $7,500 imposed / compensation determined according to losses closely connected to unsatisfactory conduct / purchaser entitled to recover surveying, valuation and expert costs incurred investigating boundary issue / legal costs relating to dispute with vendor insufficiently connected and declined / claim for diminution in value and lost carpark leasing potential not proven on evidence / purchaser awarded compensation of $15,344.19 / costs of $11,700 awarded, reduced from usual starting point to reflect failure to prove misconduct charges

Appeal / residential property with direct-fixed monolithic cladding / purchasers alleged inadequate disclosure of weathertightness risks / Committee found licensee guilty of unsatisfactory conduct for inadequate disclosure / Real Estate Agents Act 2008, s89, s93, s111 / Professional Conduct and Client Care Rules 2012, r6.4, r10.7 / HELD / licensee’s knowledge of monolithic cladding engaged disclosure obligations / licensee required to ensure purchasers were informed of significant potential weathertightness risks and able to seek expert advice / forwarding moisture report without explanation or guidance insufficient / reasonably competent licensee should have highlighted relevant risks, explained implications of direct-fixed cladding and recommended a building inspection / Committee entitled to rely on contemporaneous and circumstantial evidence despite dispute as to conversations between parties / finding of unsatisfactory conduct upheld / compensation referral under s93(1)(ha) improper as provision not in force at time of relevant conduct and could not be applied retrospectively / compensation referral dismissed

Appeal / purchaser of residential property later discovered third bedroom consented as sunroom and not third bedroom as advertised / misleading marketing / Committee found licensee ought to have been on notice upon viewing property that further enquiry required / Real Estate Agents 2008, s111 / Professional Conduct and Client Care Rules 2012, rr 5.1, 6.2, 6.4 / HELD / licensee still bound by misleading information even if they did not expressly repeat or pass it on / however, no red flag to prompt a reasonably competent licensee to question status of the third bedroom / first LIM unlike 2024 LIM obtained later did not have a plan showing two bedrooms and a sunroom / valuer had accepted third bedroom without question / enquiry into status of third room prompted not by later agent’s inspection but 2024 LIM / no unsatisfactory conduct / Committee’s decision reversed / appeal allowed.

Compensation referral / unsatisfactory conduct / licensees found liable for unsatisfactory conduct in failing to disclose risk of asbestos and the inability to use the driveway to access rear of property (without neighbours’ permission), misleading advertisement and failure to provide supervision / Real Estate Agents Act 2008, s50, s110/ Professional Rules 2012, r5, r6, r10 / Fair Trading Act 1986, s43 / HELD / principles developed for award of loss or damage under FTA relevant to discretion to award compensation / broad and pragmatic approach taken to determine causal connection between losses claimed and contravening conduct / purchase of caravan, and health, personal circumstances and loss of enjoyment of property not closely connected to licensees’ unsatisfactory conduct / no evidence as to loss of value of the property / price paid for driveway over which purchasers have no legal right unclear / claim for compensation dismissed

Appeal / appellant alleged licensee failed to disclose water ingress issues, that downstairs living room and bedroom consented for rumpus room only, and that marketing of property was misleading about number of bedrooms and lounges / Committee undertook own initiative inquiry into adequacy of supervision of junior licensees / Committee found licensees guilty of unsatisfactory conduct, though subsequently recalled decision due to factual misunderstanding / Committee determined to take no further action / Real Estate Agents 2008, s892c, s111 / Professional Conduct and Client Care Rules 2012, r5.1, r6, r10.7 / HELD / no “red flags” to put licensees on notice of water ingress, or actual knowledge / any evidence downstairs bedroom not habitable not apparent until after settlement, and no actual knowledge at time of property sale / agency’s policies and procedures relating to supervision of licensees adequate / Committee’s decision confirmed / appeal dismissed  

Application to review Registrar’s determination not to pursue complaint as it only disclosed inconsequential matters / Real Estate Agents Act 2008, s50, s51, s72, s73, s74, s112 / HELD / licensee’s property management was not real estate agency work and therefore could not be assessed as unsatisfactory conduct, only misconduct / misconduct requires conduct reasonably regarded by agents of good standing or reasonable members of the public as disgraceful / no credible evidence indicative of misconduct / licensee’s employment with the agency was separate from her property management work / no error of fact or law / application dismissed / Registrar’s decision confirmed