PHOTO: FILE
A couple, who refused to pay commission on the sale of their multimillion-dollar property, alleges that their real estate agents’ negligence led to them receiving less than the market value for their home. Ken and Karen Warner’s architecturally designed home and 6.5 hectares of land in Redwood, located at 170 Prestons Rd, were sold for $6.8 million in January 2021. The property’s rateable value increased to $8.7 million eighteen months after the sale, with the land alone having a rateable value of $7.6 million.
The house and surrounding land at 170 Prestons Rd.
KAI SCHWOERER / THE PRESS
CBRE, the real estate agency that facilitated the property sale, has taken the Warners to court over unpaid commission. In response, the Warners have counterclaimed, asserting that inadequate advice from the real estate agency resulted in the property being sold below market value. According to a judgment by High Court Associate Judge Dale Lester, the Warners argue that the agents failed to disclose that the buyer introduced by CBRE had existing interests in neighboring properties at the time of purchase.
The Warners claim they would have delayed the sale if properly advised, pointing out that market conditions improved by mid-2021. They allege that they were not provided with guidance on the offers they received or the counteroffers they contemplated. The couple initially purchased the property for $550,000 in May 2003 and took full ownership in August 2011.
The property’s buyer, identified as “Mr Ye” of Avanda, is associated with Chinese property developers Grand Arc Land Development, who also own adjacent land. A subdivision of 248 lots, approved for 140, 170, and 180 Prestons Rd, is associated with property developers Avanda Group.
The Warners’ intention for 170 Prestons Rd was to develop 73 new residential houses, as approved in an overseas investment application by Grand Arc. The application specified that all interests in the land would be sold after completing the development.
CBRE agents Merv Davies and Paul Brown, who assisted the Warners with the sale, are at the center of the legal dispute. The Warners have sought documents related to Davies’ involvement, particularly his deleted email account, but CBRE claims the account was deleted in the ordinary course of business.
The claim and counterclaim are scheduled for a hearing in May, and the Warners and CBRE have been approached for comment. CBRE Christchurch managing director Tim Rookes declined to comment.
SOURCE: THE PRESS