More real estate agents to face courts

By ANNE GIBSON property editor

The Commerce Commission is continuing to crack down on real estate advertising with prosecutions against seven estate agents in the pipeline.

But any estate agents convicted in district courts and found guilty of breaking the law are still able to continuing practising.

Real Estate Institute president Rex Hadley said the institute did not strike off agents prosecuted by the commission.

Although they might have broken the Fair Trading Act, they had not committed any criminal offence, said Mr Hadley. "They can't be tried twice for the same crime."

The Commerce Commission has laid charges against Sails Realty at Mangawhai Heads, north of Warkworth, Olsen Everson at Orewa and Century 21 Morris Realty in Palmerston North and it has charges pending against other real estate firms.

The latest cases involve allegations of misleading advertising and pricing and will go before various district courts soon.

But those facing prosecution have been advised by an estate agent who has already been down that track not to worry too much.

In December, the Orewa Property Shop, trading as The Professionals, was convicted in the North Shore District Court of breaching the act for an advertisement which showed beach vistas when the beach was not visible from the property, at 492A Hibiscus Coast Highway.

Alan Rowlands, a director of the Orewa Property Shop, said yesterday that apart from a 10-week break in Fiji which was "fantastic", he had continued in business after the court case.

"In fact, I had a huge level of support from other real estate agents, solicitors, my past and present clients.

"Everyone thought that I was set up, that the ad I had placed was nowhere near that important and that it was a ridiculous case."

After the court case, he said, a complaint was made about him to the Real Estate Institute questioning whether he was a fit and proper person to hold a licence.

The matter went to a disciplinary hearing, where he was warned. "But the institute takes the attitude, quite rightly, that what happens in court should be left in the court."

A competitor had complained about Mr Rowlands, which led to the prosecution, but Mr Rowlands said the commission had refused to tell him who it was.

Around the time of his prosecution, he gave a number of ads to the commission which he said showed advertising similar to his. Mr Rowlands said he had also laid a complaint with the commission against another agent's advertising.

He advised agents facing prosecution to keep their spirits up.

"It's not as bad as it seems. But I'll never know what the hidden impact on my business has been."

Commerce Commission spokesman Vince Cholewa said it could not ban agents from practising.