Indra Prasad’s licence to sell real estate was cancelled after she failed to tell potential purchasers that part of road frontage on a south Auckland property was to be taken for road-widening and then lied by falsifying her work diary to state all interested parties were told.
Questions of disclosure came to a head after the buyer tried to onsell. The High Court was told Ms Prasad marketed the Redoubt Road property in early 2016. She became aware of plans to widen the Redoubt Road/Mill Road corridor. There was evidence that some, but not all potential purchasers, were told part of the road frontage would go. A buyer purchased at auction in February 2016, unaware of roading plans. Marketing documents made no mention; it was not highlighted at the auction. The purchaser spent $40,000 on renovations, selling again by auction within six months. The second purchaser backed out after finding out about potential road widening. Disciplinary action was taken against Ms Prasad.
The High Court found proved charges of ‘seriously incompetent or seriously negligent’ work for failing to make disclosure and ‘disgraceful conduct’ for retrospectively writing up her work diary stating road widening had been fully disclosed. Deliberate dishonesty in the real estate industry merits licence cancellation, Justice Brewer said. Ms Prasad had fifteen years experience in real estate. Her prior work record included two previous findings of ‘unsatisfactory conduct.’
Prasad v. Real Estate Agents Authority – High Court (28.02.20)
20.041