Assignment task:
In the following scenario, what has the salesperson done wrong? Explain what the salesperson has done that could be cause for the Fair-Trading Act 1986 to be breached? In addition, you need to discuss the pricing of the property.
Scenario:
Taika and Mia are very excited to be purchasing a lifestyle property to expand their current business. They have been growing sunflowers and watermelons and have outgrown their current lifestyle block. Their budget is $1,250,000 and they have seen a property for sale advertised on their local agency's website. The advertisement reads 'buyer enquiry over $1,100,000'. Noting the price guide is within their budget they quickly phoned the salesperson Ben, to arrange a viewing. At the viewing Taika and Mia made it very clear to Ben that they were looking to purchase the lifestyle property to expand their watermelon business and will need to use the four large paddocks at the front of the property. Ben assured them the paddocks would be perfect for growing the watermelons. The following morning Taika phoned Ben to make an offer of $1,200,000. Ben told Taika he would need to make the offer higher as the clients were looking for offers over $1,300.000. Taika and Mia were surprised by his comment as the price advertised said buyer enquiry over $1,100,000 so they were expecting they could make an offer of around $1,200,000. However, Taika and Mia did not want to miss out and really needed to purchase a large property so they could expand their business. They made an offer that evening for $1,300,000 and it was accepted. One week before Taika and Mia were due to move into the property, they were driving past when they noticed the four large paddocks were all completely under water. Whenever there was heavy rain, the paddocks flooded. The clients had previously informed the salesperson of this flooding issue on their property, but the salesperson did not disclose this information to Taika and Mia. They were very upset to find the property was not going to work for them. A complaint was made, and they requested the contract be cancelled.
Ref:
Fair Trading Act 1986 No 121 (as at 10 July 2023), Public Act 14 False representations and other misleading conduct in relation to land - New Zealand Legislation