PHOTO: Auckland, New Zealand. FILE
Auckland Real Estate Agents Ordered To Pay Over $25,000 After Buyers Left With Leaky Home
Two Auckland real estate agents have been ordered to pay more than $26,000 in compensation after failing to disclose serious weathertightness risks that left homeowners facing major repair bills on a leaky North Shore property.
The ruling from the Real Estate Agents Disciplinary Tribunal is another stark reminder of the risks surrounding leaky homes in New Zealand and the legal obligations agents have to disclose known defects.
Water Leaks Discovered Just Weeks After Purchase
The North Shore property was purchased in July 2019 for $785,000 by buyers identified as DG and NC.
Within weeks of moving in, the owners discovered water entering through the roof and leaking around windows throughout the home.
The tribunal found Auckland real estate licensees Shane Coote and Andrew John Miller had prior knowledge of building reports warning of moderate weathertightness risks before the sale took place.
Despite this, the buyers were never properly informed.
Building Reports Revealed Serious Concerns
According to the tribunal decision, reports obtained before the sale identified inadequate flashings around several windows and joinery areas — defects commonly associated with water ingress problems.
The agents claimed they believed the vendor’s assurances that remedial work was being completed.
However, the tribunal found neither agent sought proof the repairs had actually been carried out.
Specialist evidence later showed the defects could not simply be repaired with retrofitted flashings, leaving full window replacement as the only long-term solution.
Repair Costs Blew Out Beyond $44,000
The homeowners ultimately faced repair and associated costs totalling more than $44,000, including:
- Replacement of nine windows
- Interior wall restoration
- Waterproofing work
- Mortgage interest costs linked to funding repairs
The tribunal ultimately reduced the compensation award by 40%, bringing the final amount payable to $26,486.
The reductions reflected findings that the agents’ conduct was negligent rather than intentionally dishonest, and that the property was considered at significant risk of leaking rather than being a confirmed active leaky home at the time of sale.
Tribunal Rejects Blame Shift To Buyers
The agents attempted to argue the buyers should share responsibility for failing to obtain their own building inspection.
The tribunal rejected this argument entirely, stating most residential buyers in New Zealand do not necessarily commission formal building reports and that the purchasers had not failed in their due diligence obligations.
The decision reinforces the significant responsibility placed on licensed real estate professionals to disclose known material risks to buyers.
Lead Agent Held More Accountable
The tribunal found Coote carried greater responsibility due to his lead role in the listing and his direct dealings with the vendor regarding the building reports.
Miller was viewed as less culpable because he relied on information supplied by Coote.
Under the ruling:
- Coote must pay 75% of the compensation ($19,865)
- Miller must pay 25% ($6621)
Both agents had already been disciplined by the Real Estate Agents Authority for unsatisfactory conduct.
Coote was fined $2500, while Miller received a $750 fine and was ordered to complete additional professional training.
A Warning For Buyers And Agents Across NZ
The case highlights the ongoing risks surrounding New Zealand’s leaky homes crisis and serves as a warning for both property buyers and real estate professionals.
For buyers, independent inspections remain critical before committing to a purchase.
For agents, the message is clear — failing to disclose known structural risks can lead to serious financial penalties and lasting reputational damage.