Former Barfoot & Thompson agent Yvonne Wang received an email saying "the nasty thing has been removed". Photo / Supplied
Former Barfoot & Thompson agent Yvonne Wang received an email saying "the nasty thing has been removed". Photo / Supplied
A real estate agent implicated in an Auckland fraud case involving a doctored LIM report is under the spotlight across the Tasman, Australian authorities making inquiries about her with New Zealand police and our own real estate watchdog.
And a property lawyer believes Barfoot & Thompson should compensate the victims for their estimated $300,000 in lost equity, given the firm’s former employee appears to have been “complicit” in the deception.
Lawyer John Waymouth said in his opinion: “The salesperson got emails saying they knew the LIM was going to be altered, so [Barfoot & Thompson] are responsible vicariously for the actions of their salesperson who introduced the fraudulently or falsified LIM into the system.
“Absolutely they should compensate,” he believed. “They’ve got an obligation of good faith.”
A professional Auckland couple were sentenced this week after they admitted falsifying an official property document in order to sell their leaky North Shore home at full market price to unsuspecting buyers in 2015.
The 81-year-old man - who later became a Barfoot & Thompson agent - was given four months’ home detention, and his elderly wife six months’ community detention. They were ordered to pay $55,000 in reparation and granted permanent name suppression on health grounds.
Court documents obtained by the Herald show the couple ordered an electronic copy of the LIM report from Auckland Council, then deleted reference to their house having “major moisture-related cladding issues” on their home computer.
They emailed the corrected version to their Barfoot & Thompson agent Yvonne Wang with the message, “You will be relieved to hear the nasty thing has been removed”.
The falsified report was then uploaded onto Barfoot & Thompson’s website and made available to prospective buyers, Mark Dansey and Amanda Clough.
When the auction was brought forward, Dansey and Clough downloaded the LIM from the company’s website, and sent it to their lawyer as part of their due diligence, buying the property the next day for $1.19 million.
The couple removed reference to moisture defects in the original LIM report and replaced it with a blank space.
They only learned of the deception four years later when they listed it for sale and were forced to off-load the property as a leaky home for a loss.
The incriminating emails were discovered during a warranted search of the defendants’ home in 2020, about a year after Dansey and Clough went to police.
Wang was not charged in connection with the fraud and denied knowledge of the ruse.
The Real Estate Authority (REA) confirmed she voluntarily suspended her licence in 2018. Wang is now practising real estate in New South Wales for Okura Real Estate Pty Ltd where she is an accredited auctioneer.
Asked whether it was investigating Wang or had received any complaints about her, an REA spokesman said: “REA will consider information available relating to the case and assess what action may be taken.”
However, Australian authorities have confirmed they are looking into Wang.
Former Barfoot & Thompson agent Yvonne Wang received an email saying "the nasty thing has been removed". Photo / Supplied
NSW Fair Trading has oversight for the conduct of the state’s real estate agents.
A spokesman said the agency was making “inquiries on this matter and is looking to determine whether any offences in NSW have occurred”.
This included liaising with New Zealand’s REA and police.
The agency could take a range of enforcement actions against serious offending, including financial penalties, disqualification or suspension of licences. It could also initiate criminal proceedings.
An REA spokesman confirmed the NZ watchdog had received an enquiry from NSW Fair Trading about Wang.
“As this is an ongoing inquiry, we are not able to provide any further information.”
The Herald asked police whether, in light of the “nasty thing” emails, they had considered charging Wang in connection with the fraud.
Police responded: “This was a thorough investigation working with the victims and the real estate company involved. The Solicitor General’s guidelines on prosecution were applied, and this resulted in two defendants being charged.”
Police would not comment on investigations by Australian authorities.
A signed affidavit by Wang dated September 2020 claimed she had no knowledge of the LIM report being altered and no recollection of receiving the two incriminating emails.
“It was not usual for me to read the LIM reports as I was usually too busy,” she told police.
“I do not recall if there were any weather tightness issues with this property as it was too long ago to remember any details.”
Barfoot & Thompson managing director Peter Thompson. Photo / Supplied
The Herald put questions to Barfoot & Thompson about how a falsified property document was able to be uploaded to the company’s website and whether it had been aware of the incriminating emails to Wang.
The Herald also asked what reviews or audits had been carried out by the company, and whether it accepted any liability or would provide compensation, given the victims were forced to sell the house as a leaky property for significant financial loss.
Managing director Peter Thompson would not comment on Wang and her apparent role while the matter was under investigation in Australia, but said the company would assist the investigation “in any way we can”.
“At the time the New Zealand investigation into the property sale was being undertaken by the authorities, we were unaware of any suggestion that our sales agent was in any way implicated.”
The man who was sentenced this week had his contract terminated when the company learned he faced a criminal charge in 2021 connected to his earlier offending, and the company immediately reported the matter to the REA, Thompson said.
An elderly couple were sentenced this week for fraudulently doctoring a LIM report to sell their North Shore house. Photo / Getty Images
Though it was not unusual for agents across the industry to accept information, including LIM reports, from vendors in 2015, the company had “for a number of years” since ordered them directly from councils.
As to whether the company would accept any liability or compensate the victims, Thompson said: “At the time the offence occurred, the person involved was a vendor and a client. He and his wife are the only ones who have been charged and found guilty of a crime.”
He added that the case sent a strong message that those selling real estate needed to be honest in their dealings with potential buyers and the professionals they engage to assist them.
“All involved in the selling and buying of real estate benefit when the integrity of verbal comments and documentation are not called into question.”
Waymouth, who specialises in real estate law and practice, said buyers should be able to rely on property documents made available by reputable real estate firms.
While he thought Barfoot & Thompson had a moral and good faith responsibility to compensate the victims, Waymouth also believed it could be legally liable.
“Under the Fair Trading Act you are responsible for the actions of your employee.”
In his opinion: “The Barfoot & Thompson salesperson is clearly part of the deceit.”
The REA recommends buyers obtain LIM reports directly from local councils and have the documents reviewed by a lawyer.
