Building inspection shock claim

A Queenstown real estate agent says some agents in the resort should be "locked up or fired" for encouraging buyers not to get a building inspection done in order to speed up purchases.

His claim has been backed by an experienced building inspector, who said he was seeing the same thing in Dunedin.

But Real Estate Institute New Zealand representatives said industry authorities were likely to take a dim view of the agent’s claim, and went so far as to suggest he should be worried about his future in real estate as a result.

One Agency agent Deni Bevin said he had recently heard of three cases in Queenstown where buyers he was working with said they had been told not to worry about getting a building report on a potential purchase.

He posted a video with comments and expletives about the issue on his Instagram account.

Mr Bevin said the fierce competition for property in recent months had created an atmosphere where some agents were trying to get sales over the line as quickly as possible.

He said they were telling buyers to "just get your mate to do it".

Mr Bevin encouraged buyers — particularly those who suggested they would get a friend to do the inspection — to still consult an inspection expert.

He said it was likely there had been sales in Queenstown where a building inspection had not been carried out.

"They can’t buy a house ... that’s built in the ’90s and not get a building inspection," he said. Problems with some homes built between 1988 and 2004 became known as the "leaky home crisis".

Ross Lunn owns a building inspection company in Dunedin and has been in the industry for 35 years.

He said he had also heard from clients who had been encouraged to skip a building inspection.

"I hear that here in town from some of my clients.

"A couple of my clients refused to be bandied by [agents], saying ‘no, sorry, we want an inspection done’.

"The trouble is the market is so bloody hot ... [Vendors say they are] just going to take all unconditional offers."

He had noticed a drop-off in the number of people asking him to carry out an inspection.

"There are so many unconditional offers going in at the moment ... So many people are cashed up and they don’t need to go to the bank and they’re just going in and buying the house off the internet.

"A lot of them are from out of town and they don’t even get anyone to have a look at them because they’re just buying it up."

He now did a lot of pre-sale inspections where the client put in an unconditional offer after he had done his report.

"The way of people getting ... a building report once the price has been accepted — those days are gone. The market’s changed so much ... Dramatically so."

Bayleys Cromwell branch manager and Real Estate Institute New Zealand Otago-Southland regional director Gail Hudson said she was not aware of agents advising against getting a building inspection.

Dunedin Bayleys Metro managing partner Mark Stevens also said he had not heard of agents advising against a building report, pointing out it was unethical.

REINZ chief executive Bindi Norwell said while it was not a legal requirement for buyers to get a building inspection done, carrying out due diligence was strongly recommended.

She said their code of practice stated members must act openly, ethically and honestly in their dealings.

Ms Hudson said she was alarmed by Mr Bevin’s conduct and use of expletives when raising his concerns.

"I’m appalled, frankly."

There were codes of practice for agents to follow, which included not bringing the industry into disrepute.

"I can assure you that will be taken up with the Real Estate Authority and with the Real Estate Institute.

"They will both take a very dim view of that and I think he should be rather concerned about his future in real estate."