PHOTO: FILE
In a groundbreaking decision that has rocked the New Zealand property industry, two real estate agents — Stewart McLean and Clayton Knowles — have been ordered to pay $35,000 in compensation after being found guilty of unsatisfactory conduct in a high-profile property deal.
The Real Estate Agents Disciplinary Tribunal ruled that the pair misled a buyer during the sale of a home — a violation that has been described as “significant” in its impact on the buyer and on industry standards.
⚖️ The Tribunal’s Verdict
The Tribunal found that McLean and Knowles, who were acting as agents during the sale, provided misleading information and failed to disclose material facts that would have affected the buyer’s decision-making process. As a result, the buyer suffered financial loss — prompting the Tribunal to order $35,000 in compensation, one of the more substantial awards in recent disciplinary history.
“This is a reminder that agents must act with complete honesty and transparency,” the Tribunal noted in its findings.
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🏘️ What Went Wrong?
According to evidence presented during the proceedings, the agents failed to clearly disclose key information about the property’s legal and physical condition. The buyer relied on assurances that later proved inaccurate, leading to significant unforeseen costs and distress.
While both McLean and Knowles have professional standing in the real estate sector, this case has raised serious questions about compliance and accountability in the industry.
🛡️ A Win for Consumer Protection
This outcome reinforces the importance of the Real Estate Authority (REA) in upholding public confidence in the profession. Agents are legally bound to act in the best interest of their clients, disclose relevant information, and avoid misleading conduct — breaches of which can result in serious consequences.
This case also serves as a warning to agencies that internal practices must meet the highest standards or face legal and reputational damage.
💡 Buyer Beware — But Also Be Empowered
For property buyers, this decision sends a strong message: you have rights — and there are channels to pursue justice if those rights are violated. Always seek legal advice, ask the hard questions, and don’t be afraid to challenge vague or evasive information during a transaction.
🧭 Industry Moving Forward
The real estate sector in New Zealand continues to evolve under increasing scrutiny. This ruling against Stewart McLean and Clayton Knowles is a watershed moment, emphasizing that ethical practice is not just expected — it’s enforceable.
Agencies are now being urged to review their training and compliance systems to avoid similar fallout.