Estate agent failed to mention highway

Photo / Martin Sykes

A Hamilton estate agent tried to sell his own section without telling buyers about a roading project being planned either on the site or next door.

Ivan Sherburn of Online Realty (Hamilton), trading as Ray White Hamilton, acted as both the selling agent and vendor of 45 Raynes Rd, Rukuhia.

But he failed to reveal that Transit New Zealand's Southern Links Bypass was planned for the area.

The Real Estate Agents Authority censured Mr Sherburn for his conduct, which it found unsatisfactory and short of the standard the public was entitled to expect.

Although he cancelled the contract and repaid the deposit, his non-disclosure could not be ignored, the authority ruled.

But Mr Sherburn defended himself yesterday and said he lost more than $40,000 on the deal.

"The real story here is an attempt was made to rip off a real estate agent," he said, telling how he had initially struck the deal to sell the land for $300,000 but the couple withdrew and he later sold it to another party for $260,000.

Three sets of plans for the land had failed to result in the new motorway, which was at least 20 years away, Mr Sherburn said.

"I didn't tell the guy about it because I forgot to tell him," he told the Weekend Herald.

The complainant was Paul Hogben, Mr Sherburn said.

The authority's decision said that in 2008, a couple signed up to buy the property from and via Mr Sherburn, acting as both vendor and agent, without any knowledge of the huge roading network.

A fortnight after paying a $30,000 deposit, they heard the arterial network was earmarked to run either through or adjacent to the land.

The couple discovered Mr Sherburn had hosted a Neighbourhood Watch meeting at his house where the proposal was discussed.

They complained to Ray White about failure to reveal the roading plans, foundation costs Mr Sherburn said would cost $5000 but which they were later told would cost $15,500, and saying that Mr Sherburn told them not to get a LIM report.

The couple also went to their solicitor to have the contract cancelled and get their money back.

Mr Sherburn told them he was prepared to cut his price and hoped they would reconsider and still buy the land, the authority's ruling said.

The complainants met the principal of Ray White to discuss the issue and Mr Sherburn outlined his version of events. He said he did not see the roading proposal "as a serious concern"; however, he "should have mentioned it and a couple of times I thought about it when we were talking about different matters", the authority said of his statements.

Yvonne Box of Bombay, who runs the Real Estate Coach business, which trains real estate licensees, said the case was a wakeup call for agents.

"I am sure this will be discussed in many real estate office meetings around the country as a means of reminding all staff of the need to work with the highest standards and to avoid compromising integrity for potential profit," she said.

"The Complaints Assessment Committee has taken account of the belated disclosure by the licensee.

"The issue appears to have been resolved in a manner satisfactory to all parties."