Real estate firm Barfoot & Thompson has been found guilty of unsatisfactory conduct relating to potential conflicts of interest involving its agents.
It follows a protracted court process that saw the company mount repeated legal challenges to an ruling made against it by the industry watchdog.
The case involved an internal Barfoot policy which allows agents who are buying property listed with the company to deal directly with sellers. Barfoot director Peter Thompson says the firm is reviewing the decision and will make changes where necessary to ensure the client's best interests are being met.
A Court of Appeal decision says Barfoot's policy was an "abdication of its primary responsibility" to its clients and amounted to unsatisfactory conduct. "The policy leaves the client in the hands of a licensee whose objective as would-be purchaser necessarily conflicts with the best interest of the client as vendor," the decision says.
"Moreover, the licensee may be in possession of information that the client could reasonably expect to be confidential and to other material information that ought properly to be disclosed to the client."
