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New rules that guide the conduct of real estate agents have come into effect (on April 8th).

Included in these rules are a requirement that the agent cannot rely on the seller's word about hidden or underlying defects in the property. Expert evidence or advice may be required.  Good faith in the information passed by the vendor is no longer adequate.

 Grimshaw and Co, who specialise in leaky buildings say on their blog that an agent has an obligation to disclose hidden defects, when a property is build of materials which are or may be at risk of weathertightness defects.  The agent must either obtain from the vendor confirmation that the property has no defects (in the form of experts report), or recommend the purchaser seek expert advice.

 

For more and source:

Grimshaw and Co

Interest.co.nz

Real Estate Agents Authority

 

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