PHOTO: What was supposed to be a new chapter for a family quickly spiralled into disaster. FILE
A dream lifestyle property turned into a financial and emotional nightmare after major disclosure failures left new owners with an uninsurable house deemed unsafe for living.
A House That Can’t Be Lived In
What was supposed to be a new chapter for a family quickly spiralled into disaster when they discovered their newly purchased home was essentially worthless.
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The roof was leaking and likely contained asbestos.
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The property could not be insured.
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The local council declared the house needed to be demolished.
To make matters worse, the buyers also discovered they didn’t even have legal access to the driveway that was advertised as “shared”.
Today, they’re forced to live in a caravan on the front lawn of the property they “paid for but can’t even use.”
“Buyers say real estate salespeople Steven and Scott Mathis, along with supervisor Pete Lissington, left them with an uninsurable, unsafe property and no legal driveway access—forcing them to live in a caravan and face financial ruin.”
A Real Estate Authority (REA) investigation found that the salespeople and their supervisor involved in the 2022 deal engaged in serious failings of disclosure and oversight.
Key findings included:
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Failure to disclose crucial information about the roof’s condition and possible asbestos.
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Misleading statements about driveway access.
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Ignoring neighbour warnings about unconsented works.
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Inadequate supervision of an inexperienced salesperson.
The three industry professionals were collectively fined $21,000 and censured, with further disciplinary action now being considered by the Real Estate Agents Disciplinary Tribunal.
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The Driveway That Wasn’t Shared
The original listing promoted “easy access” to sheds via a shared driveway. But neighbours later confirmed no such shared access existed—and that any use of their land was at their discretion.
Despite being told this directly, the listing was never corrected. The buyers only discovered the truth after moving in.
Asbestos and Health Risks Brushed Aside
Evidence also showed the listing agents were aware the 1950s home likely contained asbestos. A leak above a doorway further increased the chance that asbestos fibres could be disturbed—posing “a real risk to the health of any potential purchaser,” according to the authority’s ruling.
Yet this information was never explicitly communicated to the buyers, nor was it recorded in the official property disclosure documents.
Fines and Consequences
The REA handed down penalties as follows:
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$10,000 fine and censure for the lead salesperson, described as showing a “high level of unsatisfactory conduct.”
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$3,000 fine and mandatory training for the inexperienced agent, who failed to properly disclose risks.
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$8,000 fine and censure for the supervisor, whose lack of oversight was deemed to have caused “considerable harm.”
All three are now facing possible compensation orders when the case is escalated to the Real Estate Agents Disciplinary Tribunal.
What This Means for Buyers
This shocking case is a stark reminder of why due diligence is essential when buying property.
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Always get an independent builder’s report.
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Confirm driveway access and easements in writing.
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Ask for documentation about roof condition, asbestos, and consents.
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Never rely solely on what’s in the advertisement—or what an agent says on the spot.
For these buyers, failing to check the details before signing has left them with nothing more than a caravan and a financial hole they may never climb out of.
🔑 Key Takeaway
When it comes to real estate, disclosure failures can destroy lives. Always investigate, always document, and always question what’s not written down.
SOURCE: RNZ