Real estate boss caught in sting

A realty boss who allowed an unlicensed man to market and sell homes in breach of the law was caught out in an elaborate sting by investigators.

Colin Boyer was principal of Century 21’s Pakuranga Realty Ltd. But the real estate professional has pleaded guilty to reckless misconduct and is now awaiting a penalty decision.

Boyer sold his franchise to South African Herman Cloete in October 2013. The conditions of sale included an agreement that Boyer would provide technical and legal advice for three years while overseeing the operation.

Cloete agreed to become licensed within three years, but failed to comply with this.

In January 2014 Boyer was hospitalised and reduced his workload on medical advice.

In June 2014 the owner of three properties at Gwenand Place contacted the agency and discussed listing them.

Cloete offered to market and sell the homes and the woman signed an agency agreement with him, a summary of facts states.

He prepared the listing agreement and forged Boyer’s signature. Though unlicensed, Cloete was also listed on marketing material for the properties. Boyer allowed Cloete to run open homes and admitted to an informant that Cloete was looking after the sales as Boyer was hardly ever in the office, the summary says.

After receiving a tip-off, an investigator from the Real Estate Agents Authority (REAA) posed as a potential buyer by phone. The next day the investigator was shown a property by Cloete and given advice on how to proceed with an offer.

Cloete admitted he was not a real estate agent, but told the undercover sleuth he was the principal of Century 21.

Boyer later admitted to investigators he should have cancelled the listing agreements, relisted the properties and reported Cloete to the REAA for undertaking real estate work without a licence.

Boyer voluntarily suspended his licence in March this year. He could not be reached for comment.

Cloete returned to South Africa and neither Boyer nor REAA investigators have been able to locate him.

The Herald sent questions to Century 21 national manager Geoff Barnett asking how an unlicensed person was able to purchase a franchise then market and sell homes in breach of the Real Estate Agents Act.

Barnett replied: “Century 21 is pleased both ( Boyer and Cloete) are no longer in the real estate industry.”