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Selling a home for nearly $1 million less than its market value has cost an Auckland real estate firm dearly after a judgment handed down in the Auckland High Court.
Premium Real Estate has been found guilty of misleading and deceptive conduct and breach of fiduciary duty to an Auckland couple over the sale of a multi-million dollar Milford cliff-top home.
The couple sold their Beach Road home through Premium in April 2004 for $2.575 million. Premium then sold the property again approximately six months later for $3.555 million - nearly $1 million more than the original sale price.
Premium Real Estate has been ordered to pay the couple $900,000 in compensation for the financial loss suffered.
The couple sued Premium, believing their property had been undersold and raising concerns about the Premium agent's relationship with the buyer.
The buyer was a property developer for whom the agent was already acting on other property transactions. The agent's daughter was also employed by the buyer.
Simpson Grierson litigation partner William Akel, who represented the couple, said "this judgment will have significant implications for the real estate industry. It shows that real estate agents must make full disclosure of any potential conflicts of interest. Failure to do so will be very costly."
* Full story see tomorrow's New Zealand Herald.
- NZHERALD STAFF
