A Real Estate Authority complaints assessment committee issued a penalty decision in the case, fining both agents $1000 each. Photo / NZME
A Real Estate Authority complaints assessment committee issued a penalty decision in the case, fining both agents $1000 each. Photo / NZME
A Harcourts real estate agent and her supervisor have been found guilty of unsatisfactory conduct for their roles with land where subdivision was not allowed.
A Real Estate Authority complaints assessment committee issued a penalty decision in the case, fining both agents $1000 each, ordering they undergo training and paythe complainant’s costs.
Neither the section’s address, area nor the complainant’s name was published.
Harcourt’s Jobi Smith marketed the property, the committee said. The authority lists Joanne (whose preferred name is Jobi) Therese Smith as a licensed agent with Gold Real Estate trading as Harcourts Gold on Papanui Rd, Christchurch.
Smith stated there was the potential for subdivision. The property was subsequently bought by a man who only later became aware of a covenant registered on the title prohibiting subdivision until 2025.
The buyer complained to the authority saying Smith misled him.
Richard (Greg) Powell was Smith’s supervisor at the time. The authority lists Powell, previously of Harcourts, as now working for Prime Realty, West Melton.
But the committee noted Smith told the buyer to check the title.
The Real Estate Authority has translated its sale and agreement brochure into seven languages - including Māori. Image / Supplied
“When discussing the property, Smith recommended to the complainant that he contact the council to check whether subdivision was possible. The complainant did so and was advised council rules would allow for the property to be subdivided into three properties,” it said.
But it found she had already been told it couldn’t be subdivided.
“The committee wishes to record its factual findings as to Smith’s knowledge of the land covenant.
“In particular, we note independent evidence suggests Smith was, in fact, made aware, prior to obtaining the record of title that there was, or could be, restrictions on the ability to immediately subdivide the property,” it added.
The section vendor told an authority investigator he was aware of the land covenant on the record of title and he advised Smith of that before the property was listed.
The committee found that Smith failed to exercise skill, care, competence and diligence, her conduct was unsatisfactory and fell short of the expected standard.
Smith told the committee that shortly before the property was auctioned, she obtained the record of title.
“She read the first page (only) and put it in the property pack. The contents of the property pack were then reviewed by Powell,” the committee’s decision said.
“Powell states he checked Smith had obtained the necessary documentation, but that he did not read the documents themselves. Given this, Smith and Powell say they were not made aware of the land covenant registered against the title which prevented subdivision of the property until 2025,” the committee’s decision said.
As she failed to properly check the record of title where she was on notice that subdivision might not be allowed, Smith did not put herself in a position to properly advise the buyer of the restrictions, the committee said.
And by not advising him of them, she misled him, the committee added.
Both were ordered to undergo further training. Smith must train in subdivisions and selling off plans. Powell has to complete supervision training.
Both were fined $1000 and ordered to pay half each of the complainant’s costs and expenses: $1638.75 each.
Paul Biddington was chairman of the committee which heard the case along with deputy chairwoman Natalie Small and member Fale Lesā. They also issued the penalty decision.
A Harcourts’ spokeswoman said the business had no comment to make about the decisions or penalties. The agents did not respond to a request for comment.
Anne Gibson has been the Herald’s property editor for 24 years, has won many awards, written books and covered property extensively here and overseas.
