An Auckland real estate agent has lost his job after selling a young couple's home to one of his colleagues but failing to tell the owners of their professional link.
The actions were uncovered during an investigation by the Weekend Herald into property deals involving West Auckland agents.
Ray White has confirmed Ronald Hachache was ordered out after failing to disclose links with the buyer in two cases. And in a separate incident, the company confirmed it had asked another agent to leave over concerns about ethical standards. The firm has referred both cases to the Real Estate Agents Authority.
"Clients of Ray White can be assured that we take all matters of ethics with the utmost of seriousness," spokeswoman Lisa Pennell said. "There is no evidence to suggest this type of activity is widespread in our organisation."
Mr Hachache lost his job after Weekend Herald inquiries in relation to the July sale of a four-bedroom house at 8 Stonegate Close in Massey.
The property was sold for $685,000 to Kappa Crucis Ltd, owned by then South Auckland Ray White agent Ashwin Nand. It was relisted last week with an asking price of $839,000 after refurbishment.
Former owner Pablo Rust said Mr Hachache had presented an unconditional pre-auction offer and pushed for a quick sale.
Mr Rust, 29, is now based in Whangarei with his wife Kelsey, 25, and two young children. He said Mr Hachache did not reveal his links with Mr Nand. "They told us they were some sort of company they deal with a lot. But other than that, no."
Mr Rust is now seeking legal advice over the sale and plans to lay a complaint with the REAA.
Earlier, Mr Hachache and Mr Nand had been suspended over their links in the sale of a house in Bruce McLaren Rd, Henderson. Mr Hachache subsequently returned to supervised work. Mr Nand resigned and voluntarily suspended his agent's licence.
Property records show the pair are also linked to 53B Maplesden Drive in Clendon, which was bought for $310,000 by Kappa Crucis in March and relisted for sale for $479,000 in September. The listing was withdrawn on September 22 - the same week the Weekend Herald reported both agents' suspensions.
Mr Hachache referred inquiries to Ray White's corporate office and Mr Nand could not be reached.
Ms Pennell said that after investigating matters raised by the Weekend Herald, "we have ended the relationship between Ray White and Ronald Hachache". The company had also referred the matter to the REAA.
She said any instance of potentially unlawful conduct was reported to the REAA for an independent review and determination.
"Where appropriate, disciplinary action is taken. We also undertake our own investigation if the matter is not a reportable matter.
"While there will unfortunately always be isolated individuals in every industry who fail to fulfil their responsibilities under the law, Ray White has a zero-tolerance policy on deliberate acts of misconduct."
Under REAA conflict-of-interest rules, agents selling properties to anyone with a personal or professional link must advise the vendor in writing, seek their written consent and provide an independent registered valuation. The rules are designed to protect owners and ensure someone independent is working to sell their home.
The Weekend Herald can also reveal that former Ray White agent John Goodrum left the firm's Te Atatu branch at Ray White's request in September, following a Fair Go investigation into allegations he failed to tell buyers about his close links to a property inspection company that provided building reports for homes he was marketing.
"We hold our agents to high ethical standards and where those standards are not met, we exercise our right to part ways with the individual concerned," Ms Pennell said.
In a separate case, Mr Goodrum handled the 2013 sale of 37 Awaroa Rd in Sunnyvale.
Former owner Violet Papalii, a widowed pensioner in her 80s, says she was approached by Mr Goodrum with an offer to purchase the three-bedroom investment property for $489,000. The property, which features a 1538sq m section, was not on the market but Mr Goodrum had handled previous sales on her behalf. She eventually settled for $535,000.
The purchaser was Bam One Ltd, a director of which is Terrence Lum, a Ray White property manager and colleague of Mr Goodrum who worked in the same Te Atatu office.
The company has since gained consent for a three-lot subdivision on the site.
Ray White confirmed a consent form acknowledging the apparent conflict of interest and signed by Mrs Papalii is lodged on the property's file. Mrs Papalii said she did not remember signing the document or being alerted to the professional relationship.
Her lawyer David Jury said he was not made aware that "Mr Goodrum was involved with the purchaser" until contacted by the Weekend Herald. Ray White also confirmed no independent valuation was provided.
"She's elderly and frail and I didn't have the opportunity to talk to her about the agreement prior to it being presented," Mr Jury said. "Unfortunately, the agents presented it to me signed as a fait accompli."
Mr Jury questioned whether Mrs Papalii had understood the consent form she signed.
Mr Goodrum, who is now employed by Barfoot & Thompson Te Atatu, declined to comment and referred inquiries to Ray White. Ms Pennell said following matters raised by the Weekend Herald, the company planned to refer Mr Goodrum to the REAA.
She said Ray White had no concerns about the actions of Mr Lum.
Barfoot & Thompson director Peter Thompson said the company was aware of allegations relating to Mr Goodrum when it took him on.
"But I'm not prepared to give any comment at this stage because there could be further action. I don't want to get into any discussion if there's going to be a possible REAA or legal discussion. I don't think that's fair."
He said Mr Goodrum was adamant he had "followed Ray White policy" and Barfoot & Thompson had not received any complaints about his conduct while he had worked there.
Do you know of other cases?
Email lane.nichols@nzherald.co.nz
