Estate agent censured for failing to disclose 'leaky home'

Photo / Greg Bowker

A real estate agent, who failed to tell a prospective purchaser of a leak in a home he was selling, has been censured by the Real Estate Agents Authority and ordered to contribute towards the cost of repair work to the property.

Grahame Carey of Champion Realty Ltd in Howick was found by the authority's complaints assessment committee to have exhibited unsatisfactory conduct in a decision released today.

The committee said it was "more likely than not" that Carey did not communicate the issue of the leaking conservatory to the buyer, through a translator, despite being asked to do so by the vendors.

The translator said Carey was adamant that the property had "no problems" and subsequently that he told the buyer he "forgot to mention it" when the leaks were discovered.

Carey maintained he told the buyers about the leak in the conservatory, but said he felt there was more concern about it being a "leaky building" in the context of the cladding.

Carey included a building inspection clause in the sale and purchase agreement and this should have safeguarded the complainant, the committee said.

However the fact this was not highlighted in the building report, did not excuse Carey, who should have disclosed any known defects to his customer.

"A licensee must not mislead a customer or a client, nor provide false information, nor withhold information that should by law or fairness be provided to a customer or client," the decision said.

Carey said he never intentionally deceived the complainant and that there were language issues which made communication difficult.

Carey said he had made every effort to resolve the dispute, including paying $600 for a diagnostic report.

He has been ordered to write a letter of apology to the buyer and pay $2000 towards the cost of repair work to the home by the authority.

- NZ HERALD ONLINE