Skip to content
RealEstate Niche
Menu
  • Rent Out Property
  • Sell Home
  • Real Estate News
  • Land
  • Realtor
Menu

Realtor fined for supplying incorrect information to bidders before auction

Posted on 15/04/2023 by

The Environment Court application was to preserve a native pūriri tree like the one pictured, not for the construction of a six-storey building next door, as a prospective buyer told the realtor. Photo / Tania Whyte

A realtor who called bidders the night before a house auction and told them a six-storey building was going to be built adjacent to the property – when it wasn’t – has been censured and fined for his actions.

Neil Bailey first started the property owners at 8.30pm the day before the auction and told them he’d seen evidence that an application had been filed for a massive new construction project on a neighboring property.

He didn’t tell them the “evidence” had been given to him by a prospective purchaser, and the owners gave him permission to notify bidders.

However, the owners learned after the auction that while an application to the Environment Court had been filed, it was not for a building, but to have a pūriri tree listed and preserved.

Advertisements

Advertise with NZME.

The vendors said their neighbors laughed when they asked about the six-storey building and asked where they’d got their information from.

The vendors complained to the Real Estate Authority that the $3 million sale price they had hoped to achieve was affected by the realtor’s actions because three bidders didn’t show up for the auction.

The authority found Bailey guilty of not exercising care, competence and diligence and said while he was attempting to follow the rules of full disclosure, the fact the information was raised by a prospective buyer should have raised red flags.

“The prospective purchaser could have an interest in lowering the price and deterring other prospective buyers from bidding at the auction,” the authority said in its decision.

Advertisements

Advertise with NZME.

However, Bailey’s manager at Unlimited Potential Real Estate in Auckland, Grant Lynch, told the Herald Bailey received the information from a prospective buyer who was an architect who thought he’d found a genuine issue with the property.

“There’s no way he was trying to dupe him,” Lynch said.

“I believe he thought he’d found a legitimate flaw and passed it onto Neil.”

The authority said the prospective buyer had been researching geomaps and found an overlay affecting the property.

Lynch said the architect didn’t turn up for the auction, and with the benefit of hindsight, Bailey could have done more investigation to assess the legitimacy of the evidence.

He said half an hour before the auction was scheduled to begin, the agency assured the vendors it was not too late to delay it but that they wanted to proceed.

The house didn’t end up selling at auction, but the vendors accepted an offer of $2.85m several days later.

“It was a bit of a double-edged sword for us, because if the information had been correct and we hadn’t disclosed it, then we’d likely have faced an REA case from the purchaser,” Lynch said.

The authority said it would have been helpful for the vendors to know where the evidence was given to Bailey came from, and that had the owners known it was from a prospective buyer, they might have questioned its veracity further or delayed the auction until they could.

“When the licensee was first advised of the application, he should have tried to verify the information, for example, by contacting the adjoining neighbors, particularly as he had not seen the application himself,” the authority said.

Advertisements

Advertise with NZME.

“Had the licensee used this approach, he would have quickly discovered that the information was incorrect.”

The authorities said Bailey was under pressure to run a successful auction for the vendors, but said there wasn’t enough time to verify the new information.

“The committee considered the handling of the new information by the licensee was sloppy and could have been handled better, as it was misleading and could have had a material effect on the outcome of the auction.

“… the licensee was too quick to decide that he had to disclose this new information to both his client and the prospective purchasers.

“Had he taken time to first investigate the application and to understand what was being proposed, he would have alleviated the uncertainty and stress for the complainant.”

Ultimately, the authority found Bailey’s conduct was at the lower to mid-level of unsatisfactory conduct and that regardless of the circumstances of the auction, the vendors had managed to secure a price within the range that Bailey had estimated it would go for.

Advertisements

Advertise with NZME.

They declined to award the vendors the $60,000 in compensation they were seeking for stress, worry and loss of self-respect, and instead censured Bailey and ordered him to pay a $3000 fine.

Category: Realtor
  • Exploring the World of Antique Jewelry
  • The Health Risks of a Sedentary Lifestyle vs. Active Sports
  • The Future of Nutrition: Technology-Enhanced Eating
  • The Ultimate Kitchen Cleanup Guide for Home Cooks
  • Exploring the World of International Street Food

alternative ways to sell your house buy my house home realtor home sellers house buying companies house realtor houses how do you search by mls number? how to sell your home online how to sell your house by owner how to sell your own house my realtor national association of realtors realtor realtor.com find a home realtor.com florida realtor.com mi realtor.com official site realtor.com rentals realtor.com texas realtor definition realtor homes for sale realtor logo realtor md realtor nc realtor near me realtor net realtor on realtor one realtor pa realtor pronunciation realtors realtor websites sell home by owner sell home for cash sell home online sell home quick selling a house sell my home sell my own home steps to selling a house by owner the realtor the realtors what does a realtor do yahoo real estate listings

  • Contact Us
  • Disclosure Policy
  • Sitemap
  • Exploring the World of Antique Jewelry
  • The Health Risks of a Sedentary Lifestyle vs. Active Sports
  • The Future of Nutrition: Technology-Enhanced Eating
  • The Ultimate Kitchen Cleanup Guide for Home Cooks
  • Exploring the World of International Street Food

alternative ways to sell your house buy my house home realtor home sellers house buying companies house realtor houses how do you search by mls number? how to sell your home online how to sell your house by owner how to sell your own house my realtor national association of realtors realtor realtor.com find a home realtor.com florida realtor.com mi realtor.com official site realtor.com rentals realtor.com texas realtor definition realtor homes for sale realtor logo realtor md realtor nc realtor near me realtor net realtor on realtor one realtor pa realtor pronunciation realtors realtor websites sell home by owner sell home for cash sell home online sell home quick selling a house sell my home sell my own home steps to selling a house by owner the realtor the realtors what does a realtor do yahoo real estate listings

© 2025 RealEstate Niche | Powered by Minimalist Blog WordPress Theme

WhatsApp us