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

Compensation referral / unsatisfactory conduct / Committee found licensee liable for misleading marketing that conveyed property had a third car park / Real Estate Agents Act 2008, s93, s110 / Professional Rules 2012, r5.1, r6.4, r10.7 / HELD / causation established for diminution in value for loss of third carpark / retrospective market valuation accepted, unqualified valuation evidence rejected / garden reinstatement costs recoverable as direct consequence of non-compliant car park / valuation report costs recoverable / no award for loss of marketability / no contributory negligence given assurances to purchaser, and that licensee did not request further information on rules from Body Corporate / compensation reduced by 25% to reflect innocent misrepresentation / no costs awarded / compensation of $23,851.92 awarded

Compensation referral / unsatisfactory conduct / licensees found liable for misleading advertisement / clear ‘red flag’ in LIM report that office-rumpus not habitable as third bedroom / should have been apparent to reasonably competent licensee that further investigation required / Real Estate Agents Act 2008, s50, s93, s110 / Professional Rules 2012, r5.1, r6.4 / HELD / loss of value measured at point of purchase / market value of two-bedroom dwelling at time of purchase higher than price paid / no actual loss suffered / no award for emotional distress can be made in absence of primary or actual loss / no award for invalid expert’s report / Tribunal does not follow civil court principle of ‘costs follow the event’ and directs submissions on costs / compensation referral dismissed

Application to review Registrar’s determination / Registrar declined licensee application for an exemption to complete required continuing education course / Real Estate Agents Act 2008, s112 / Real Estate Agents (Continuing Professional Development Rules) Notice 2018, r13 / New Zealand Bill of Rights Act 1990, s13, s14 / HELD / licensee sincerely held perception that course content conflicts with personal values / exceptional circumstances established, but it did not prevent licensee completing course / criteria for an exemption not met / no breach of BORA / although course attendance mandatory, licensee not forced to learn or believe anything, or to subsequently act in any particular way / no error of fact or law / application dismissed / Registrar’s decision confirmed.

Liability and penalty / misconduct / agency operated trust account for more than six years without appointing an auditor and failed to comply with trust account audit requirements despite repeated reminders from REA / Real Estate Agents Act 2008, s73c, s110, s125 / Real Estate Agents Audit Regulations 2009, reg9, reg12, reg15, reg16 / HELD / agency admitted misconduct arising from reckless contraventions of the Act and Audit Regulations / trust account received funds in 275 transactions between 2017 and 2023 while no auditor was appointed / failures included not appointing an auditor, not notifying REA of auditor appointment, not providing monthly reconciliations and statements, and not obtaining required audits / compliance with trust account regime fundamental to consumer protection and public confidence in the profession / prolonged offending over six years more serious than comparable cases / mitigating factors included early admission of liability and cooperation with Authority / agency censured / company officer ordered to complete trust account training / agency fined $18,000

Compensation referral / unsatisfactory conduct / Committee found licensee misinformed purchaser as to the age of the roof / Real Estate Agents Act 2008, s50, s93, s110 / Professional Rules 2012, r5.1, r6.4, r9.1, r9.5 / prospective expense of replacing roof closely connected to licensee’s unsatisfactory conduct / innocent breach should not be treated in the same way as conscious untruthfulness or dishonesty / careless not deceitful / compensation reduced by 25 per cent for licensee’s innocent misrepresentation / honest belief roof was newer based on information from vendor / licensee ordered to pay $17,159

Appeal / appellant has a brain injury / alleges licensees pressured her into buying a property with many problems / committee found no breach and decided to take no further action / Tribunal declined preliminary issue to accept late appeal / Real Estate Agents Act 2008, s111 / HELD / purchaser, notwithstanding brain injury, legally allowed to make her own decisions / complaint not supported by corroborative evidence, including from those who assisted her throughout the purchasing process / no disclosure by vendor or red flags to put licensee on notice of any defects / purchaser responsible for own due diligence / purchased property with intention of renovating / licensees exercised skill, diligence and care throughout transaction / committee correctly decided to take no further action against licensees / appeal dismissed / Committee’s decision confirmed

Compensation referral / unsatisfactory conduct / non‑disclosure of prior cancelled sale due to absence of CCC for original dwelling / purchasers bought property unaware of issue and later incurred costs obtaining CCC / Committee found two licensees and agency liable for unsatisfactory conduct for failure to disclose prior cancellation, but no deliberate concealment / purchasers claimed $34,853.18 including council fees, remedial work and stress / Real Estate Agents Act 2008, s93, s110 / Professional Rules 2012 r5.1, r6.2, r6.4 / HELD / compensable loss must flow from nondisclosure rather than other underlying defects / only $210 inspection cost sufficiently connected / other claims not proven or lacked causal link; stress not recoverable absent diagnosable injury recognised as loss in its own right / respondents jointly and severally liable for $210.

Appeal / licensee advertised residential property as having carpark / appellant purchaser alleged licensee failed to exercise skill, care, competence and diligence by not identifying inconsistency between physical markers on property and boundaries shown in cross lease flats plan / Committee took no further action / Real Estate Agents Act 2008, s111 / Professional Rules 2012, r5.1, r6.4 / HELD / licensee must “know what they are selling”, though not expected to be solicitors, surveyors or building inspectors / no credible evidence of “red flags” to indicate carpark fell outside exclusive use area / any defect not reasonably apparent / licensee had previously sold property with no issues identified / no error of fact of law / Committee’s decision upheld / appeal dismissed

Application to review Registrar’s determination not to pursue complaint as it only disclosed inconsequential matters / Real Estate Agents Act 2008, s74, s112 / Kacem v Bashir [2010] NZSC 112 / HELD / neighbour interested in acquiring vendor’s property around same time licensee approached vendor for off-market inquiry / no evidence supporting complaint that licensee conspired with neighbour to lower vendor’s price expectations / no evidence inquiry not genuine / no material error nor is Registrar’s decision plainly wrong / application dismissed / Registrar’s decision confirmed

Compensation referral / unsatisfactory conduct / licensees failed to disclose building reports obtained by vendor identifying weathertightness risk from insufficient window flashings / Real Estate Agents Act 2008, s50, s93, s110 / Professional Rules 2012, r10.7 / compensation considered on legally principled basis / losses must flow from unsatisfactory conduct found by Committee / liable for cost of replacement windows (retrofitting flashings not feasible), waterproofing, restoration of adjacent walls / claim for replacement blinds not casually connected / no contributory negligence by not obtaining formal building report / claim for interest costs for remediation partly successful / 25 per cent reduction for non-intentional breach / 15 per cent reduction as failure was to disclose risk, rather than known leaks / compensation of $26,486 awarded for losses, apportioned 75 per cent to lead agent