Property

Longer due diligence periods better: Whitburn

Auckland Property Investors Association president David Whitburn says he would like to see longer due diligence periods for buyers, after a High Court decision last week that overturned an agent’s charge of negligence.

Friday, December 27th 2013

The High Court in Auckland upheld agent Daphne Brown’s appeal against a tribunal decision that found her guilty of serious misconduct by creating the impression her company was acting in the complainants' best interests.

She cold-called Mary Wealleans and her husband in 2006 with a marketing pitch for an investment seminar.

The Hamilton couple, who are in their 50s, attended and bought an Auckland apartment purportedly worth $248,000.

They borrowed $253,500.

After the global financial crisis struck, the Wealleans discovered their apartment was worth only $143,000.

The judge said it was “undesireable” thatestablished real estate agencies would use "exaggeration" or "puffery" to lead uinvestors to believe the client was their sole focus of concentration.

Whitburn said it was another sad story of people buying without doing sufficient due diligence on the state of the property market. 

“It is not up to agents to tell people the state of the market - many don't know themselves, and just hope it is good.”

He said the apartment would likely have increased in value over recent years.  “I'd love to see longer due diligence periods being encouraged for buyers, but agents want deals to sell unconditionally with deposits paid, so they in turn get paid.”

Comments

On Tuesday, March 22nd 2016 1:45 pm Bronson888 said:

I have just brought my first property and due diligence was SO easy as I used a company that did it all for me! I did it all online. All our friends told us it would be a nightmare but it couldn't have been easier. They are an Auckland company WOFpropertyfiles.co.nz. Awesome!

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.