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Real estate firm busted for unlicensed trading

A Hastings company has been convicted for unlicensed trading by the Real Estate Agents Authority.

International Resource and Development Corporation was sentenced in the Hastings District Court and ordered to pay $4450 in reparation.

The court heard how the firm obtained written authorisation from a business owner to negotiate with prospective buyers on the owner’s behalf for a period of 45 days.

On successful completion of a deal, the firm would charge the owner $2200 or 6% of the transaction value, whichever was higher.

The business was sold for $26,000 and the owner was charged $2530 plus $400 for legal costs.

A written decision is yet to be issued.

It was the 8th successful court prosecution for unlicensed trading under The Real Estate Agents Act 2008, according to Kevin Lampen-Smith, chief executive of the Real Estate Agents Authority.

He says consumers can protect themselves when buying or selling real estate by checking the Real Estate Agents Authority public register at www.reaa.govt.nz.

c.hutch@clear.net.nz

More by Chris Hutching

Comments and questions
1

How pathetic it is that the REAA would prosecute a company selling a piddling business for less than my credit card limit.
The REAA suffers from fear and loathing when capable entities, including lawyers and brokers enter their 'over protected ' space.
Time to de-regulate business sales, often no different than the S&P of shares.