Consumer laws for to all – even real estate agents

Hon Judith Tizard
Minister of Consumer Affairs

2 May 2007
Media Statement

Consumer laws apply to all – even real estate agents

Consumer Affairs Minister Judith Tizard is stunned that Harcourts are honouring one of their real estate agents who deliberately misled consumers and breached consumer laws.

"Harcourts must be seriously out of touch if they choose to honour a person who has deliberately broken our consumer laws and their own industry's code of ethics."

Shaun Cosgrave was named as Harcourt's top central region agent and is up for the national award later this month.

The agent has admitted that he mislead Hamilton home buyers when he chose not to tell them about a planned apartment block next door to a property they then bought. He subsequently received a warning from the Commerce Commission for breaching the Fair Trading laws and was fined $750 (the maximum fine possible), by the Real Estate Institute's regional subcommittee for breaching the industry's own code of ethics.

"This award reinforces perceptions that the real estate industry values financial success over ethics. I look forward to seeing Harcourts and other companies introducing an award for the most ethical salesperson.

"Our consumer laws are not optional – they apply to every New Zealander, including real estate agents.

"This Labour-led government announced back in March that it was to overhaul the legislation governing real estate agents and give it some teeth. I welcomed that move on behalf of consumers. Bring it on!"

ENDS