Harcourts Team Group
Wellington (REA 2008)
A Tiny Omission, A Big Fine: Why That “Next-Door Subdivision” Can Torpedo Your Sale
May 31
2 min read
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The Real Estate Agents Disciplinary Tribunal handed a $3,500 slap on the wrist to a salesperson who forgot to mention a fairly important detail: the section next door had just been carved up and green-lit for multi-unit housing. Privacy gone, outlook shrunk, trust evaporated. That single oversight was enough to trigger a formal reprimand and a fine larger than many marketing budgets.
What actually went wrong...
The detail | What the agent did | Why the Tribunal cared |
Fresh subdivision consent for multi-units right beside the home | Listed the property without written disclosure or even a verbal heads-up | Privacy and outlook are part of “material information” under the 2012 Conduct and Client Care Rules. Hiding it misleads buyers and risks an insurance or financing collapse. |
The buyers only found out when a quick Google search unearthed the council consent. Trust turned to suspicion. The deal wobbled. The Tribunal ruled the omission “material” and issued a censure plus the $3,500 fine.
Why Wellington homeowners should pay attention
Density rules are tightening everywhereThe Government’s Medium Density Residential Standards let three homes of up to three storeys pop up on most urban lots. Ignore that potential and your backyard view can become a skyline of shadow lines overnight.
Banks and insurers read the zoning maps tooIf the outlook or sunlight can change drastically, lenders may downgrade value or demand bigger deposits. Surprises cost money.
Buyers have browsers, not blinkersOne quick LIM search or a call to the council planner and the secret is out. Your credibility tanks faster than the Ferry at Barrett Reef on a southerly.
Our subdivision check-list (built into every listing)
Pull the property file and consent list for every lot within 100 m.
Cross-check current zones, notified plan changes, and building envelopes.
Flag anything with resource consent for two or more dwellings.
Package the findings in plain English inside the Buyer Info Pack so nobody can say “you never told me”.
Surprise next door | Early warning sign | What to do before you list |
Old villa site suddenly zoned for six-pack townhouses | Orange fence wrap and a resource consent sign near the letterbox | Ask council for consent drawings; consider staging to screen future windows |
Large rear lot quietly split into two fee-simple titles | New peg markers or survey stakes at the back fence | Disclose in writing and price for future noise or loss of green space |
Corner section earmarked for three-storey walk-ups | Recent plan change maps showing “medium density” shading | Update photography to show context, then market the lifestyle honestly |
Ready to sell without the drama?
We run the zoning microscope before the photographer arrives, so your deal closes smoothly and the only surprise is how quickly the SOLD sticker goes up. Book a fifteen-minute call and let’s stress-test your address.
Written by Leonie Snook, Harcourts Wellington. Keeping transactions calm, compliant, and candid since 2009.
Source: Real Estate Agents Disciplinary Tribunal decision reported via LinkedIn post (June 2025).
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