PHOTO: Waiaruhe Station. NZME
The trust that possessed Waiaruhe Station near Dannevirke has been instructed to settle over $132,000 in outstanding real estate commission following the intra-family sale of a farm property.
Historically, Waiaruhe Station and the adjacent Ohukia Station were part of a family farm divided in 1979 between brothers Barry Beatson and Maurice Beatson. The separated portions were placed into trusts, with Barry’s trust acquiring Waiaruhe Station and Maurice’s trust taking ownership of Ohukia Station.
In 2017, Barry’s trust, where Maurice served as a trustee, engaged Property Brokers agent Jim Crispin to sell Waiaruhe Station. Despite the property not being sold at auction on April 6 that year, Crispin received a $6.6 million offer from an external buyer, the Matahiwi-Handyside Trust, on July 26.
Although the agency agreement had expired by then, Crispin secured the signatures of Barry, Maurice, and co-trustee Peter Roebuck on a renewal document the following day before presenting the offer. Barry accepted the $6.6 million offer on July 27.
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Barry Beatson at the failed Waiaruhe Station auction in 2017.
Maurice later expressed regret, stating he would have bought the station himself had he known it would be sold for $6.6 million. However, he also signed the offer along with Roebuck. The offer was contingent on Handyside confirming the completion of due diligence by 4 pm on August 3.
At 4:03 pm on that day, Handyside’s confirmation was still pending. Barry’s lawyer then canceled the Handyside sale via email in favor of an unconditional offer from Maurice’s trust made at the same price two days earlier. Handyside’s due diligence confirmation arrived at 4:08 pm, but it was too late.
The sale to Maurice’s trust was finalized in December 2017. On August 23, 2017, Property Brokers invoiced the Waiaruhe Trust for $132,250 in commission based on the agency agreement.
The Beatson brothers and Roebuck argued that Property Brokers were not entitled to any commission, asserting that they had entered into a “family arrangement” to buy and sell the property. They also alleged that the agency agreement was invalid, citing breaches of the Real Estate Agents Act.
However, Judge Kevin Kelly in the Dannevirke District Court ruled against them, determining that an agency agreement existed between the trust and Property Brokers on the date the brothers agreed to transfer the property between trusts. The Waiaruhu Trust, represented by the Beatson brothers and Roebuck, was ordered to pay Property Brokers $132,825 in commission, along with 2% per month interest and costs.
SOURCE: NZHERALD