PHOTO: Townshend, now retired, marketed the property as “first class” with wool carpet throughout — but the buyers soon discovered the units were far from it.
In a blow to one of New Zealand’s most recognised agencies, a Bayleys real estate agent has been censured and fined after selling a “landmark” multi-unit property he barely inspected — leaving the new owners with a $750,000 financial disaster.
The complaint, filed with the Real Estate Authority’s complaints assessment committee, accused agent Lewis Townshend of misrepresenting the condition of a high-profile rental property, relying on vendor word-of-mouth and viewing only 25% of the living spaces before putting it on the market.
The decision? $3,000 fines for both Townshend and Bayleys, a formal written apology, and public censure.
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🧱 “First Class”? Not Quite.
Townshend, now retired, marketed the property as “first class” with wool carpet throughout — but the buyers soon discovered the units were far from it.
Instead of a turn-key investment, they were met with:
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🛠️ Extensive renovations
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💸 Lost rental income
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😱 A $750K+ financial shortfall
The committee found Townshend failed to provide a written analysis of comparable area sales and neglected his responsibility to verify vendor claims — especially as a senior, experienced agent working for friends.
“This was not simply an oversight,” the decision stated. “Townshend should have known better.”
🧑💼 Bayleys Also in the Spotlight
The committee didn’t stop with the agent.
It slammed Bayleys’ oversight of the sale, saying their “reactive rather than proactive” supervision fell short of professional standards.
“Bayleys could not simply assume that Townshend had followed proper procedure just because he was experienced,” the committee wrote.
It also noted that friendship with the vendors presented a potential conflict of interest — one that should have been managed more rigorously, especially given the high-profile nature of the property.
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📢 Public Interest and Industry Impact
The decision has been made public in the name of transparency and to reinforce accountability in the real estate sector.
Industry insiders say the case is a wake-up call — especially for seasoned agents who may lean too heavily on reputation rather than process.
🔍 Lesson for the industry: No matter how experienced or well-intentioned you are, every inspection matters. Every disclosure counts.
In real estate, trust is earned — and can just as easily be lost.
SOURCE: THE POST