I’m vindicated over house sale, says agent

ANTIPODES skincare brand founder Elizabeth Barbalich was not misled into paying $2.78 million for a home in Karori, the High Court has ruled.

A judge has found neither Barbalich nor real estate agent Nicholas Reeve was lying – but Reeve’s recollection of events ‘‘is more likely to be reliable than Mrs Barbalich’s’’.

Reeve, of Leaders in Wellington, said yesterday he was delighted with the ruling.

‘‘It has not been a pleasant experience to have your credibility, honesty and reputation threatened,’’ he said.

‘‘I’ve read the judgment and am delighted to have been completely vindicated on all fronts. As a real estate agent, my reputation is everything.’’

Barbalich claimed Reeve misrepresented the competition for the property in Mallam St, Karori, in February last year, telling her of two other tenders and later of another offer ‘‘just as good’’ as her own.

She told the High Court in August that Reeve’s statements caused her to increase her planned offer of $2.53m to $2.7m in the tender document, and to $2.78m when the sellers counter-offered at $3m.

Reeve said he told Barbalich accurately that two other sets of tender documents had been sent out, but denied saying there were other tenders or that there was another offer as good as hers.

Justice Jill Mallon said Reeve did not engage in misleading and deceptive conduct. She said neither party was lying, but Reeve’s recollection of events ‘‘is more likely to be reliable ... even though Mrs Barbalich now genuinely believes her account’’.

In August, Barbalich’s lawyer, Felix Geiringer, argued that, even if Reeve had not gone as far as alleged, he was obliged to ‘‘put the record straight’’ once he knew there would be no other offer.

The judge said the tender process was confidential and Reeve was acting for the seller.

‘‘While Mr Reeve was not breaching that process by informing Mrs Barbalich of the number of tender documents that had gone out, he would be breaching it by informing her of the number of tenders received, particularly when the vendors had instructed him not to inform Mrs Barbalich of this.’’

The judge also found that, even if Reeve had been deemed to have engaged in misleading and deceptive behaviour, Barbalich did not have a case for compensation.

‘‘If Mrs Barbalich had made her first offer at $2.53m, it is likely the [sellers] would not have accepted the offer. It is likely that they would have counteroffered, and there is no reason to conclude that the final agreed price would have been any different than it was.’’

Barbalich’s property developer husband, Zoran, said he had not read the judge’s decision and did not want to comment until he had.

His wife also complained to the Real Estate Agents Authority, which dismissed her complaint. However, it said if further information became available as a result of the High Court case, she could file a new complaint.