Despite repeated warnings, some real estate agents in New Zealand continue to withhold information about serious property defects. Recent disciplinary cases reveal failures to disclose leaky homes, flood-prone land, and unconsented works, leaving buyers with expensive surprises.
Disciplinary Actions
The Real Estate Authority (REA) has fined and suspended agents for misconduct, but critics argue penalties are too light. In some cases, fines are less than $5,000 — far smaller than the losses suffered by buyers who purchase defective properties.
Common Issues Hidden
- Leaky buildings: agents downplaying or omitting weathertightness risks.
- Flood-prone land: sales proceeding without disclosure of flood history.
- Unconsented works: buyers later discover decks, garages, or extensions are not council-approved.
Buyer Protection Gap
While the REA enforces rules requiring agents to disclose known defects, enforcement depends on complaints. Many buyers don’t realize defects until months or years later, by which time it is too late to seek redress.
Practical Steps for Buyers
Always commission independent building inspections. Ask directly about consents, weathertightness, and hazards — and demand answers in writing.
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⚠️ Why it matters: Some agents hide defects. Always seek independent building reports before purchase.