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A prominent real estate firm has been charged with breaching the industry's code of ethics after the valuation of an Auckland apartment rose $50,000 in a matter of days.
City Sales faced two Real Estate Institute charges over the sale of Geoff and Jacqui Crisp's property in June last year. The company admitted breaking a rule that says members should always act in a manner that reflects well on the institute and profession, and was fined $1500.
But managing director Martin Dunn "emphatically" denied a second charge that one of his agents helped a property developer on-sell the apartment before the original deal had been settled.
The company was charged after the Crisps discovered their Auckland apartment had been on-sold before the original sale and purchase agreement was settled - and for $50,000 more than they were paid.
The North Shore couple sold their apartment in the Cintra building in the CDB for $195,000 in June last year but were never told the buyer was a property dealer. The dealer quickly sold it for $245,000 and the Crisps allege the City Sales agent showed the second buyer through their property without their consent.
"This is a clear-cut example of on-selling property on behalf of someone else, when it still belonged to us," Geoff Crisp said. "It's disgraceful. This woman was supposed to be acting in our best interests."
The Crisps complained to the institute and charges were laid in April. They want the $13,000 commission paid to City Sales refunded, payment of the extra $50,000, interest and costs.
Dunn accepted the Crisps were not told the prospective buyer was a developer but denied the second charge and said the City Sales agent was "ambushed" by a rival who showed the second buyer through.
In a letter to the Crisps' solicitor, he described the couple as bitter and hostile. He said the final owners, not the Crisps, had been "ripped off" because the property was over-valued at $245,000. Dunn said he would complain to the Valuers Registration Board unless he received a plausible explanation for the higher figure, which he claimed was impossible.
He had twice offered to pay for independent valuers to show the Crisps they received full market value.
Dunn has been a vocal critic of experts who overvalued properties.
In last week's Herald on Sunday he accused valuers of "loose and morally questionable" marketing and said he was concerned at property "finders" selling on properties "for ridiculous money", having provided a valuation.
"We're encouraging people to go against these professionals because the damage being done is hideous," he said. "It's a huge concern for the valuation profession, because it has made it all just a joke."
The second charge will be heard within a month.
