Two Harcourts Grenadier real estate agents and their branch manager have been found guilty of unsatisfactory conduct after failing to investigate earthquake-related warning signs during the sale of a $1.8 million Christchurch property.
A Real Estate Agents Disciplinary Tribunal decision has overturned earlier findings that cleared the agents of key complaints, ruling that unresolved retaining wall concerns should have triggered further investigation before buyers were reassured about earthquake repairs.
The decision, issued on 16 September 2026, involved Harcourts Grenadier Ferrymead listing agents Callum Bevan Brownlee and Shaun Davey, together with branch manager Richard Gregory Powell.
At the centre of the dispute was a previously undisclosed $37,350 Earthquake Commission (EQC) payout associated with retaining wall damage.
BUYERS TOLD EARTHQUAKE REPAIRS WERE COMPLETE
According to the Tribunal findings reported by Stuff, the purchasers were assured that earthquake damage at the property had been repaired.
However, questions had emerged about movement in a retaining wall and a separate $10,000 payment from a private insurer.
Those warning signs were significant because further inquiries with EQC, now known as the Natural Hazards Commission, would have revealed an outstanding retaining wall claim and the $37,350 payout.
The Tribunal found the two listing agents had failed to meet their professional obligations by not investigating the concerns.
The decision reinforces a fundamental responsibility for real estate professionals: information supplied by a seller cannot simply be accepted without further inquiry when credible warning signs emerge.
TRIBUNAL OVERTURNS EARLIER DECISION
The purchasers appealed after a Real Estate Authority Complaints Assessment Committee had dismissed their retaining wall complaint against the agents and a related supervision complaint against the branch manager.
The Disciplinary Tribunal reached a different conclusion.
It accepted that agents should not be expected to search through hundreds of pages of EQC documentation looking for obscure references to potential defects.
But this case was different.
The agents had been alerted to specific concerns about the retaining wall and a private insurance payment. Those details created a clear reason to investigate further.
The Tribunal concluded that direct inquiries with EQC should have been made before assurances were provided to prospective purchasers.
HARCOURTS BRANCH MANAGER ALSO FOUND AT FAULT
Branch manager Richard Gregory Powell was separately found to have committed unsatisfactory conduct for failing to adequately supervise the listing agents.
The Tribunal emphasised that supervising real estate professionals involves more than responding to problems once they have occurred.
Effective supervision requires managers to take an active role in ensuring agents meet their legal and professional responsibilities.
The finding sends a message beyond the individual agents involved, highlighting the obligations of branch managers when potentially significant property defects are raised.
NOT ALL COMPLAINTS WERE UPHELD
The Tribunal did not uphold every allegation made by the purchasers.
It overturned an earlier unsatisfactory conduct finding against Brownlee and Davey relating to information about a sewer pump.
The Tribunal accepted that Brownlee had passed on information provided by the seller during a pre-settlement inspection, rather than independently making the representation.
Four other purchaser complaints were also dismissed. They concerned driveway cracking, bedroom water ingress, the consent status of a deck, and an unconsented gazebo.
These distinctions are important: the unsatisfactory conduct findings concerned the failure to investigate earthquake-related warning signs and the branch manager’s supervision, rather than every issue raised about the property.
WHAT THIS MEANS FOR PROPERTY BUYERS AND AGENTS
The decision highlights the continuing importance of earthquake documentation in Christchurch property transactions.
For buyers, the case is a reminder that statements about completed earthquake repairs should be supported by appropriate records, particularly where retaining walls, foundations or other structural elements may be involved.
For agents, the ruling illustrates the difference between passing on information reasonably believed to be accurate and failing to investigate when evidence suggests that information may be incomplete.
A $1.8 million purchase is a substantial financial commitment. Buyers are entitled to expect that material concerns raised during the sale process will be handled with appropriate care.
The Tribunal’s decision also demonstrates that responsibility can extend to managers supervising the transaction.
COMPENSATION QUESTION REMAINS OPEN
A referral concerning possible compensation has been adjourned pending any further legal appeals.
That means the unsatisfactory conduct findings should not be confused with a final determination of financial compensation for the purchasers.
The wider lesson is clear: when warning signs emerge about a property’s history, the obligation to investigate cannot simply be passed back to the buyer.
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Source: Stuff, 2 November 2026, reporting on a Real Estate Agents Disciplinary Tribunal decision issued 16 September 2026.