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A real estate agent has admitted claiming a three-bedroomed house actually had four bedrooms.
Auckland-based Country Life Real Estate Ltd, agent and shareholder Miles Wallace, and Avanti Developments Ltd have admitted breaching the Fair Trading Act by incorrectly marketing and selling the property.
County Life advertised the property between September 2005 and February 2006, on behalf of the developer, claiming the attic space above the detached double garage was one of the four bedrooms in the home.
Despite having been told by a prospective purchaser that building consent had not been obtained from North Shore City Council for the attic space to be constructed as a bedroom, they continued marketing the property as a "brand new four bedroom home".
The council's code compliance certificate for the building works was issued on the basis that the space above the garage was an attic.
"The representations contained in the marketing of the property by Country Life, Miles Wallace and Avanti were misleading," the Commerce Commission's fair trading branch acting director Stuart Wallace said.
"This was a serious breach of the Fair Trading Act."
The commission considered prosecuting but instead had allowed the three parties to make the attic space comply with the Building Act and local regulations for a "legal" bedroom.
It said the case sent a message to property developers and real estate agents that advertising claims must not be misleading.
- NZPA
