Auckland Leaky-Home Case: Vendors Claim Pre-Inspection Report Wasn’t Requested by Buyer

Residents of Auckland found themselves at the center of a high-profile legal dispute after a judge ordered a family to pay over $500,000 in damages for the deceitful sale of a rotting house in Onehunga. The family claims they did not disclose a pre-inspection report warning of moisture damage because it was not requested by the buyer, a defense that has sparked further legal proceedings.

The plaintiff, Angelina Vanifatova, purchased the Selwyn St property in January 2021 after making “extensive inquiries” about the condition of the house. The Wang family, the vendors, had signed a contract promising to provide “any information held relating to the property relevant to the due diligence investigation.” However, the pre-inspection report, commissioned in June 2020 by another potential buyer, Dillon Sue, was never shared with Vanifatova.

According to a High Court decision by Justice Peter Andrew, the Wangs deliberately withheld the report, undertook “concealment works” to mask the damage, and misrepresented the state of the property to entice a sale. The judge ruled that the Wangs were aware of the report and failed to disclose it, despite contractual obligations to do so.

Ben Han, the Wangs’ solicitor, defended his clients, stating that they “honestly believed the house was in good condition” and had no reason to suspect it leaked. Han argued that the pre-inspection report was not requested by Vanifatova and that a friend had advised the family that the findings were normal for a property of that age and type.

The Wangs have since filed an appeal against the finding of deceit, citing alleged mistakes in the judge’s decision. Han claims that the judge made errors in both fact and law, and the family believes they were not aware of the full extent of the property’s issues.

Barfoot & Thompson, the real estate agency involved in the sale, has also come under scrutiny. David Wang, an agent with the firm, was singled out by the judge as likely being aware of the property’s defects during the sale. However, the firm’s general counsel, Lisa Gerrard, stated that they were not a party to the proceedings and had no further comment.

Meanwhile, the case has raised broader concerns about the transparency and accountability of real estate agents and property vendors. The judge’s ruling has emphasized the need for greater due diligence in property transactions, particularly in older homes with known issues.

The legal battle continues as the Wang family seeks to overturn the ruling, with Han stating that they will fully explore all options in the appeal process. The case has become a focal point for discussions around property disclosure, tenant responsibility, and the role of real estate agents in ensuring transparency.