PHOTO: Little blue penguin (kororā). Womble Studios
A couple who purchased what was marketed as a “fabulous urban coastal retreat” have successfully complained against two real estate agents after discovering, only days after moving in, that their new beachfront lifestyle was about to change dramatically.
The buyers said they purchased the property believing they would be able to enjoy regular beach walks with their dogs and uninterrupted coastal views. Instead, they learned through a community newsletter delivered shortly after settlement that the beach beside their home had been designated as a little blue penguin (kororā) protection area.
The changes included a ban on dogs and the construction of a 400-metre-long, 1.2-metre-high protective fence along the dunes, significantly altering the property’s outlook.
Buyers Say They Would Never Have Purchased the Property
The homeowners told the Real Estate Authority (REA) that easy beach access for walking their dogs was one of the property’s biggest attractions.
Following the implementation of the penguin protection measures, they said they were forced to either walk 400 metres to access another beach or drive elsewhere to exercise their dogs.
The couple claimed they would never have purchased the home had they been made aware of the council’s plans before signing the sale agreement.
Unable to enjoy the lifestyle they believed they were buying, they placed the property back on the market just six months later.
Real Estate Authority Finds Disclosure Was Inadequate
The complaint centred on listing agent Annette Sliper and supervising agent Llewellyn Kemeys, who also held an ownership interest in the property as a trustee for the vendor.
The REA Complaints Assessment Committee found that important information about the planned coastal changes should have been disclosed to potential purchasers.
Although the listing agent acknowledged she knew about the proposed dog restrictions, she said she was unaware that a protective fence would also be constructed.
The committee concluded that buyers should have been alerted that the property’s key selling feature—its coastal setting—was about to change significantly.
According to the committee, this would have allowed purchasers to investigate the proposed changes themselves and make a fully informed decision.
Buyers Seek Compensation
The homeowners said the experience caused significant emotional and financial stress.
They sought more than $53,000 to cover the costs associated with marketing and reselling the property after deciding they could no longer remain there.
While the committee declined to award compensation at this stage, it referred the matter to the Real Estate Agents Disciplinary Tribunal, which will consider whether compensation should be ordered.
Agents Say They Were Unaware of Fence Plans
Both agents maintained they were unaware of the proposed fencing before settlement.
They argued that details of the fence became publicly available only after the sale had been completed.
The supervising agent also submitted that he was acting solely as a trustee for the vendor rather than carrying out real estate work.
Following the complaint, the agency reviewed other listings in the area and began including disclosures about the penguin protection area in marketing material for nearby properties.
Penalties Imposed
The REA determined both agents had engaged in unsatisfactory conduct, although it stopped short of finding the information had been deliberately withheld.
The committee noted that if it had concluded the non-disclosure was intentional, the penalties would likely have been more severe.
The penalties included:
- Annette Sliper: Censured and fined $1,200
- Llewellyn Kemeys: Censured and fined $3,300
The matter will now proceed to the Real Estate Agents Disciplinary Tribunal for consideration of any compensation payable to the purchasers.
Lessons for Buyers and Sellers
The case serves as an important reminder that purchasers should carry out thorough due diligence when buying property, particularly in coastal locations where environmental protections, zoning changes or future infrastructure projects may affect how a property can be used.
For real estate professionals, it reinforces the importance of disclosing information that could materially influence a buyer’s decision—even where changes have not yet taken effect.
Key Takeaways
- Two New Zealand real estate agents have been censured and fined over disclosure failures.
- Buyers said they were not told about a planned penguin protection area affecting their coastal property.
- The changes included a dog ban and construction of a 400-metre protective fence.
- The homeowners later sold the property and are seeking more than $53,000 in compensation.
- The case has been referred to the Real Estate Agents Disciplinary Tribunal for further consideration.