Real estate firm settles rehab dispute

The country’s biggest real estate firm has reached a settlement with a young family who unwittingly bought a home next door to a drug and alcohol rehab centre housing recovering addicts and former inmates.

The family sued Harcourts agent Michael Robson and his Mt Eden-based firm Charlton Realty last year and sought more than $280,000 in damages and costs.

They bought the home, marketed by Robson as “family perfection”, in early 2014 for $1.325 million and later learned it was next door to a Wings Trust substance addiction rehab facility.

Robson admitted knowing about the centre but did not inform the buyers before auction.

He later apologised. He was found guilty of unsatisfactory conduct before the Real Estate Agents Authority for withholding information, censured and fined $5000. Charlton Realty was also censured and fined.

The family tried to reach a settlement with Harcourts, arguing they had paid too much for the property and would never have bought it had Robson told them about the rehab unit.

When this failed, they filed legal proceedings in the High Court alleging negligence and breach of the Fair Trading Act. They sought $230,000 in damages, plus $50,000 for distress, at least four years’ interest, and costs.

Harcourts had defended the case, which had been due to go to a hearing in March. The firm argued the couple paid fair market value.

Harcourts commissioned a valuation report in its defence. Its valuer Evan Gamby argued a “prudent” buyer should have undertaken proper due diligence. The Wings Trust property was owned by Housing New Zealand, which was “readily discoverable” to prospective buyers.

A court spokeswoman yesterday confirmed a settlement had been reached this month.

The couple would not comment, with their lawyer Adina Thorn issuing a statement saying the proceedings had been “discontinued”.

Robson and Harcourts also declined to comment.