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News Pick: Do agents need to tell prospective purchasers that there was a previous adverse building report?


Via Real Estate Agents Authority June 2014 Newsletter.

Licensees are expected to advise prospective purchasers when a previous building report has detected problems with a property. This disclosure must be made regardless of whether any subsequent report has cleared the property.

In REAA v Austin [2013] NZREADT 108, the Tribunal made a finding of unsatisfactory conduct against a licensee in circumstances where he failed to disclose to the purchasers that the property was built of material which might leak and that a previous sale had collapsed due to an unfavourable building report which had identified potential weather tightness problems with the property. The Tribunal held that the licensee was not entitled to rely on the fact that a subsequent positive report provided by the vendor cleared the property. The agent should have disclosed the fact that an initial building report had detected problems with the property. The Tribunal emphasised in its decision the importance of agents disclosing all material information to a prospective purchaser and not just information that they consider material.

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  • News Pick: Do agents need to tell prospective purchasers that there was a previous adverse building report?

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# Domi Jon
Thursday, September 27, 2018 8:05 PM
It is interesting to read your blog post and I am going to share it with my friends. Herbew Fentos

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