PHOTO: FILE

A recent tribunal examined whether a real estate agent was aware that gang members lived next door to a property he was selling. This issue arose after the buyer, who purchased the property without a prior visit, discovered the nature of the occupants in the neighboring Kāinga Ora house.

The buyer later learned that the agent had canceled an open house event because gang members were gathering nearby for a tangi on the same morning. Despite her complaints, the Real Estate Authority chose not to pursue an investigation. Dissatisfied, the woman appealed to the Real Estate Agents Disciplinary Tribunal, which recently concluded that the agent had not acted improperly.

The tribunal focused on whether the realtor, whose identity remains confidential, knew that the neighboring property was regularly inhabited by gang members rather than being a temporary site for a tangi.

In January 2022, the realtor noticed numerous patched gang members nearby on the morning of a scheduled open home. He consulted the property owner, who agreed to cancel the event. The owner remarked that there had never been gang issues in the area before, calling it “just our bad luck.”

A few days later, the eventual buyer, also anonymous, contacted the realtor. She made an offer within a week without an in-person viewing, relying on a video walkthrough. She claims the agent intentionally avoided showing the neighboring property during the virtual tour. Upon taking possession in March, she was alarmed by the state of the neighboring house, which had visible piles of rubbish and dilapidated vehicles, and discovered the occupants’ gang connections.

Feeling unsafe, she chose to renovate and move out, and when she sold the property in June, she did not disclose her concerns about the neighbors. In July, she lodged a complaint, asserting she wouldn’t have bought the house if she’d known about the gang presence.

The realtor maintained that the vendor had described the area as quiet and peaceful, without mentioning any issues. He reiterated that he only saw gang members due to the tangi, assuming it was an isolated event. He claimed he had no knowledge of ongoing gang affiliations in the area until the buyer’s complaint.

The Real Estate Authority’s investigation included interviews with local residents, who acknowledged some gang members lived nearby but didn’t consider their presence disruptive. Another realtor advised the buyer that she would need to disclose the gang presence to future buyers, noting that potential buyers often drove away upon seeing the neighboring property.

The authority concluded there was no established link between the tangi and a sustained gang presence that required disclosure. The tribunal, agreeing with this conclusion, found no evidence that the realtor knew of ongoing gang affiliations.

The tribunal’s ruling stated, “The corner property was not a gang pad but a Kāinga Ora house occupied by tenants, some of whom had gang affiliations since about 2019. We accept the evidence as to the general eyesore state of the corner property. However, there is no presumption such properties signal a gang.”

It further clarified that the tangi was a one-off event and the realtor did not see a gang presence at other times. The tribunal concluded, “The licensee was not required to disclose to the purchaser the cancellation of the open home due to the gang tangi that day, let alone the gang connections of the corner property unknown to him. The licensee acted competently and in good faith.”

Ultimately, the tribunal dismissed the buyer’s complaint, affirming that the realtor had conducted himself appropriately.

SOURCE: RNZ