Estate agent censured over business partner's theft

File photo

An estate agent, who failed to alert authorities to the theft of client funds from her real estate office by her business partner, has been censured by the Real Estate Agents Authority.

The "horrific situation" of the misappropriation of about $90,000 worth of client funds from a Whakatane real estate firm was revealed in July of last year, but the woman chose not to tell the authorities at that time because she did not have the full facts.

Janette Wallbutton of JD & J Real Estate Limited, trading as Century 21 Countrywide Real Estate Limited in Whakatane, had a duty to report the matter when such serious misconduct was suspected, the Real Estate Agents Authority said.

The authority said it was in the public interest that the decision be published, but earlier directed that Wallbutton's name be suppressed because the accused was unwell. The authority has this afternoon lifted that suppression order.

Wallbutton was found to have engaged in unsatisfactory by the authority, in a decision released this week.

The fact she did not want to accuse her partner without the full facts, was understandable, the authority said.

The authority also commended the woman for taking immediate action to remove her business partner from her position and began assessing the extent of the offences.

"The committee accepts that the first few days and possibly even for several weeks the situation required that 'Ms W's' full attention would be focused on those matters, but once the extent of the offending became clear, she had an obligation to inform the authority as a matter of course," he said.

"When such serious misconduct has been admitted by a licensee, the onus is on Wallbutton (to tell authorities)," the REAA said.

The woman inferred she would have got around to reporting the matter, but felt the accused was no longer a threat to the public due to her ill health.

She then bemoaned the fact the complaint had been made to the authority by other agents.

As more than six weeks had elapsed between the matter becoming evident and the complaint being made, there was ample opportunity for the woman to act, the authority said.

The woman who stole the funds is subject to a separate investigation by the Real Estate Agents Authority.