Property

Marketing needs examination: Judge

Changes are needed to real estate marketing schemes, the High Court has warned.

Monday, December 23rd 2013

The High Court at Auckland upheld the appeal of real estate agent Daphne Brown, against a tribunal decision that found her guilty of serious misconduct. It quashed her $450 fine.

Brown, who worked for an LJ Hooker franchise, called Mary Wealleans and her husband in 2006, offering an investment seminar.

The couple attended and bought an Auckland CBD apartment that was said to be worth almost $250,000.

When the GFC hit, the Hamilton couple, in their 50s, found it was worth just $143,000.

They had borrowed $253,500 against it.

Wealleans said the only reason they had purchased the property was that they were told they could make a $70,000 profit in three years. They thought Brown and her company was acting in their interests.

Justice John Priestley said the scheme was consistent with industry practice at the time but risked putting investors in a situation where they might purchase a property that it was not in their best interests to buy.

He asked for the Real Estate Agents Authority to address marketing standards, which allowed agencies to use “exaggeration” to lead people to think they were the agents’ sole focus.

REINZ chief executive Helen O’Sullivan said the new real estate agents legislation placed more obligation to ensure they provided buyers with all the necessary information.

She said the way the FMA regulated investments meant that some structures that agents were legally able to deal in five or ten years ago were now out of bounds.
“You’ve got to be careful about the difference between investment products and residential.”

Comments

No comments yet

Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

More Stories

Support for regulation

Monday, March 18th 2024

Support for regulation

REINZ has emphasised the need for property management regulation to Parliament’s Social Services and Community Committee.

A better investment market

Thursday, March 14th 2024

A better investment market

“Reinstatement of interest deductibility starting from the new tax year on 1 April brings property investors back in line with every other business in the country, where interest costs are a legitimate deductible expense," Tim Horsbrugh, New Zealand Property Investors Federation (NZPIF) executive committee member says.

[OPINION] Recessionary times

Thursday, March 14th 2024

[OPINION] Recessionary times

It is not the best out there for many businesses and property sector people. Sales are down across the board, our clients’ confidence is falling, and there is a lot of uncertainty.

Interest rate expectations: It’s not over yet

Thursday, March 07th 2024

Interest rate expectations: It’s not over yet

Most Kiwis think interest rate increases have peaked.