Realestate agent did not disclose info.What can I expect when I ask for compensation?

[Knielsen]

Morning
Last year we bought a property that is slightly affected by a floodway. We did heaps of due diligence, checked property file, asked very pointed questions of the agent etc.
When we made an offer the owners inserted a clause that stated we were happy with due diligence on flood issues. This made us double check etc just to make sure.
A week after moving in we received an invite to a council meeting regarding the raising of the flood bank therefore increasing the risk of flooding to our home.
An different agent that was part of council was stunned that we hadn't been told.
We have a copy of a letter from Horizons that had been sent to the previous owner telling them that Horizons still held an interest in their property with regard to the floodway.

A house across the road was in the same situation, with the same agent and moved in at the same time as us. When we asked them about it they said they can't comment as they had signed a nondisclosure agreement.
Clearly the realestate agent paid them out....
I am about to contact the agency to complain.
What should I be asking for?
Kate

[donna]

Hi Knielsen,

Welcome to PropertyTalk. Have you contacted your lawyer? You'll want a property lawyer with experience - rather than learning on the job so to speak.

cheers,

Donna

[ladyagent]

Clearly, the situation should have been disclosed!

[John the builder]

did you get a LIM. This is the councils disclosure statement and has more weight? If you didnt get one you didnt do proper diligence?

[Castlerose]

Ok - thats a sticky one! The disclsoure law is a bit of a farce as some lawyers may tell you - vendors and agents only have to disclose something if you ASK that very question. If they lie or do not answer the actual question, only then is it deceptive behaviour or failure to disclose. The problem is you have to know to ask the question in the first place...
If you signed the contract with the clause saying you are happy with the due diligence you may find it very difficult to get anywhere - due diligence is exactly that, it is up to you to find out if there are any issues and unless you can prove you asked the vendor or agent if theres anything ELSE they know of then you may be stufffed I'm sorry. I've been through a similar situation thinking they have to disclose an issue, 2 hearings later I find out they have to have mislead you, been deceptive and you have to have suffered a loss (in your case lowered property value and increased insurance costs?) as a direct result of being mislead - there is no requirement for an agent or a vendor to disclose anything UNLESS you ask them!!
When a clause like that appears, I'd be wanting to know why they found it necessary to put it in there when you've already obviously got your own due diligence clause!?
The fact the neighbours have a non-disclosure agreement speaks volumes on its own; but I'd also be questioning how the increase never showed in the due diligence - did you get a lim report as that should have contained any proposed changes?? Also if Horizon have an 'interest' in the property why didn't your lawyer pick that up on the title search?
Again, the bottom line is - did you ask either the vendor or the agent if there were any other issues they were aware of (the law sees the agent as being the vendor; anything the agent says is as if the vendor is saying it.)
DEFINITELY report that agent, not only to the principal of the firm but also to NZREAA; totally unfair that agents still get away with this shit especially when its sounds as though you did your very best on the diligence side anyway!!
For future ref, always ask that question - "is there anything AT ALL I need to know that may affect my purchase of this property" with every property purchase and either tell them you are recording the conversation (and do that) or ask AND get their response in writing - you never know what might happen in the future so cover yourself anyway! Good Luck!

[ladyagent]

Clearly, the situation should have been disclosed!

[Perry]

Real estate agent did not disclose info. What can I expect when I ask for compensation?

Evasion
Denial
Obfuscation
Excuses
Blandishments
Bullshit
Finger-pointing
Blaming others (incl. you)
Avoidance of the issue
Equivocation
Wheedling

. . . and probably more. Remember too that the REINZ has a limitless supply of wet bus tickets, wrists, for the slapping of.

[kazzp]

I have asked an agent 'is there anything else you need to tell me that might affect my decision to buy this property' and he said no then later I found out over the road was a factory emitting fumes....I've also let agents know about foundation issues and they have just moved right to the next purchaser and not disclosed the information I am pretty sure....

[John the builder]

kit already was a flood zone in this case...... what makes you think he knew?