Agent's affair with client

A complaint from the woman's estranged husband has been dismissed. Photo / File Photo

The real estate watchdog has refused to take action against an estate agent said to be having sex with a client in the middle of her messy marriage split.

Members of the Complaints Assessment Committee of the Real Estate Agents Authority dismissed a complaint from the woman's estranged husband that the agent was "interfering with my matrimonial problems" and "having an affair with my ex-wife".

The committee ruled not to make public any detail that would identify those involved, but the house and the estate agent are understood to be in Christchurch.

The authority decided that having a relationship with a client did not amount to "unsatisfactory" professional conduct or misconduct. In its decision, dated July last year, the authority accepted the view of the agent's employer that issues raised by the complainant were "of a personal nature and have no relation to [the agent's] activities as a real estate salesperson".

Andrew Moore, an ethics expert and associate professor of philosophy at Otago University, said there was no clear power imbalance in the relationship between a real estate agent and client to justify mention in the industry's code of ethics.

"Psychologists and medical practitioners and the like, where there's significant importance in the sense it's a therapeutic relationship and a relationship where there's a potential for power differences or dependence ... most of them have written into their codes of ethics - 'thou shall not have sex with someone you're offering therapeutic services to'."

Teachers and university lecturers had similar rules because of the perceived power held over students: "It is accepted that the teacher has the power over whether you pass or fail."

But this was not the case with "someone selling your house".

He said while the decision of the Real Estate Agents Authority could be viewed as "slightly legalistic" in that members decided they could not act on behaviour not specifically mentioned in the code it was probably correct.

Canterbury University associate professor of law Ursula Cheer said the Real Estate Agents Authority was set up by the Government to make sure agents were not over-pricing or milking the system.

"There's nothing in there relating to personal behaviour."

She said a relationship would only become a problem if the agent used "undue influence".

The allegations arose when the husband took exception to the estate agent being copied in to an email to his lawyer.

The agent had been working for the wife, but had no further involvement with the husband.

In its decision, the committee said:

"The complaint ... does not allege unsatisfactory conduct and as the complaint relates to conduct that falls outside the definition of real estate agency work it cannot be deemed to be unsatisfactory.

"Further, even taking the view most favourable to the complainant ... there are no reasonable grounds for concluding the conduct [the complainant] has complained about reaches the threshold for misconduct."

The Real Estate Institute of New Zealand could not be contacted for comment.

Do you have information on this case? If so, then email leigh.vanderstoep@hos.co.nz