The occupant and his dog were taken by surprise, and a dog fight immediately started.
When the occupant's dog continued to attack the police dog, an officer used pepper spray to control it. The officers then entered the home and searched it.
The offender was not located in the property, and there was no evidence the occupant was involved in the matter.
The occupant complained to the IPCA about the search of his home and the treatment of his dog.
In releasing the IPCA report today, authority chairman, Judge Sir David Carruthers said that the officers failed to comply with the strict requirements of the Search and Surveillance Act because they did not give the occupant the right to refuse to consent to the search, and the dog handler failed to identify himself by name.
It concluded that the search was therefore unlawful.
However, the use of pepper spray on the dog was justified in the circumstances because the occupant could not control his dog.
"As police were searching for a dangerous and violent man, it was important for the dog to be under control so that a dog fight did not distract them from the police operation," Sir David said.
"This case serves as a reminder to police to know and comply with the strict requirements of the Search and Surveillance Act.
"This Act gives police the power to intrude into people's private spaces when circumstances permit.
"However, as a balance to this power, the law requires these people to be informed of their rights when such an intrusion occurs.
"It is crucial that police strictly adhere to these requirements in all but the most extraordinary situations."
Taranaki Police area commander Inspector Keith Borrell says police accepted the findings and apologised to the occupant.
"Police officers are often called on to respond to fast-moving incidents in which rapid decision-making is required in order to protect people or property," he said.
"However, we are very mindful that we need to comply at all times with the relevant legislation."
Staff have since been reminded of their obligations under section 131 of the Search and Surveillance Act 2012, and refresher training is being provided, Mr Borrell said.
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