Real Estate agent facing misconduct charges borrowed $100,000 from his builder

Barfoot & Thompson agent Deepak Goyal faces misconduct charges. Photo / Supplied

A developer accused of being a "front" for a real estate agent to purchase homes had a finance application approved on one of the properties, despite telling investigators he had "no interest" in buying it.

The revelation came this morning on day three of a Real Estate Agents Disciplinary Tribunal hearing for Barfoot & Thompson agent Deepak Goyal.

The "rising star", who told the tribunal he earned $500,000 in gross commission in his first year, faces misconduct charges in connection with the sale and purchase of two neighbouring Pakuranga homes on Grassways Ave in late 2014 and early 2015.

Prosecutors say he sold the properties to developer Manjit Grewal, earning commission on both transactions, before secretly paying Grewal $130,000 to cover the deposits then purchasing the properties himself through a nominee company.

Goyal has admitted unsatisfactory conduct but says he did not deceive the vendors and only stepped into buy the properties to prevent Grewal from defaulting. Giving evidence this week, Grewal told the tribunal Goyal was always the intended purchaser.

He only agreed to help the young agent buy the homes because he'd been asked, and because of the pair's shared Indian culture.

Grewal earlier told Goyal's lawyer Tim Rea he had no interest in either property and had not sought finance on them as he "never intended" to develop the neighbouring sites.

He later alerted the vendors to the alleged scheme after a falling out with Goyal. However, the tribunal learned of a new development in the case today.

Investigators contacted Grewal's lawyer to check whether the developer had sought finance on either of the Grassways Ave properties.

Prosecutor Michael Hodge said documents were received today from Westpac relating to an approved mortgage application by Grewal for one of the properties.

Hodge said the documents were "relevant evidence" given that Grewal had previously told the tribunal "that he had no interest".

"What we now know is he was actually approved finance four days in advance of the deed of nomination.

"It does raise the question or possibility at least of further questions to Mr Grewal."

Rea said the new information was "entirely inconsistent" with the evidence given under oath by Grewal.

"Mr Goyal's evidence is that he had been told by Mr Grewal that he had been approved finance for 11 Grassways but the problem was he couldn't get finance for both properties and without the two together that development wouldn't work".

That explanation made perfect sense in light of the Westpac financing documents, Rea said. Goyal was also quizzed by tribunal members today, who asked why the rookie agent had not sought advice from his Papatoetoe office branch manager when purchasing the properties he'd just sold as a nominee.

They also questioned why Goyal had not advised his manager that he had lent $130,000 to Grewal to cover the deposits. Goyal told the tribunal it was common to loan large sums of money to friends in Indian culture without any form of documentation.

He'd once borrowed $100,000 from his builder before loaning the builder $200,000 at a later date.

"That's very common for us."

The hearing has been adjourned for final submissions.