Agent fined $3k after wife buys house
Areal estate agent has been censured and fined after his wife purchased a client’s home without the agent disclosing the conflict of interest to the vendors.
Ray White agent Jinlei “Leo” Zhang even received a commission on the deal, and has now been found to have committed misconduct by the Real Estate Agents Disciplinary Tribunal.
Zhang was working for Pure Realty, trading as Ray White Mt Albert, in January 2015 when the vendor listed a vacant property with Zhang’s former Ray White colleague, Aaron Drever, the tribunal’s decision says.
Drever asked Zhang if he knew any buyers and Zhang introduced an existing client, “Mr Yan”. Drever presented an offer from Yan of $550,000, which was accepted by the vendors, and Yan paid a $55,000 deposit.
Two months later Yan discovered volcanic rock beneath the property, which meant a different resource consent was required to the one provided by the vendors. He decided to get out of the contract.
Yan asked if he could nominate his purchase agreement to Zhang, who agreed and paid Yan $55,000 as reimbursement for the deposit.
“Mr Zhang explained that the nomination was to his wife [Fang Liu], rather than himself, as her parents had provided the funds to complete the purchase,” the decision says. It was settled on 23 March, 2015.
The next year, the original vendors saw Zhang at the property, saying it was the first time they had become aware Zhang was a Ray White agent.
They said Zhang’s association with the firm was never disclosed, nor had he provided them with a certified valuation, as required under the Real Estate Agents Act, the decision says.
Zhang told the agency which reported the matter to the Real Estate Authority. Zhang accepted he had not told the vendors his wife had become the nominated purchaser, nor got their informed consent.
“He also accepted that he had retained his share of the commission.”
Zhang was charged with misconduct that was seriously incompetent or seriously negligent.
Prosecutor Simon Waalkens said the tribunal must send a strong message to licensees about the importance of disclosure obligations.
The tribunal fined Zhang $3000. He was also censured and ordered to undertake appropriate conflict of interest training within six months.
Zhang, who now works at Ray White Epsom, told the Herald he regretted not telling the vendors.
Ray White declined to comment.