Just wondering if the vendor as sold you a property advising there is a reserve in front of the house but turns out it

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Customer: Hello, just wondering if the vendor as sold you a property advising there is a reserve in front of the house but turns out it is a development. can they be held accountable for misleading the sale?
JA: What steps have they taken so far? Have they prepared or filed any paperwork?
Customer: they sold us the house....and now we have developers in front building
JA: Where is the house located?
Customer: it was word by mouth that the house is facing a beautiful reserve Flat bush we have paid just as much as the other houses with reserve..meaning we paid more to live infront of a reserve as prices are higher for properties facing reserve
JA: Anything else you want the Lawyer to know before I connect you?
Customer: i just cant to know if i have an arguement.. as this is our first home and now these issues are arising..and the seller and vendor are pointing fingers at each other
Answered by Chris The Lawyer in 3 hours 2 years ago
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Chris The Lawyer, Expert

Hi
I am a New Zealand lawyer based in Wellington and will help you with your question today. Please give me a minute to read the question

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Chris The Lawyer, Expert

The real estate agent who sold the property should have pointed out the reserve. If you did not buy this using an agent, but from the developer, then there could be an issue of misleading and deceptive conduct in the course of trade. It comes down to who made the representations about the reserve. If you bought the property on the representations, that is the first step. But you do have obligations to check these matters with the council, including having a look at a LIM report which would usually reveal development projects. If you tell me who made the representations to you about the reserve I can make further suggestions about remedies

Customer
Hello, thank you for getting back to me. It was the real state agent that advised us that the empty piece of land is a reserve and that is why we bought the property. We wanted to have an airy feel.
Today when I called the agent asking him again about the reserve as I saw people fencing the area out, he says the vendor told him it was a reserve. We are just going around in circles of "he said, she said"
Customer
We have also paid a bigger price for open view and very similar (if not bigger houses) were cheaper.. but we were told by the agent that you pay more for the view.
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Chris The Lawyer, Expert

You need to consider the loss caused by these actions, and then consider whether you want to sue both the agent and the vendor for your losses. So if you can prove that the property is worth say $10,000 less if this reserve is in fact a development site, then you can sue both of them. You can also complain about the real estate agent to the Real Estate Authority, which is a special body which investigates complaints of wrongdoing by a real estate agent

Customer
But do I have a case if it was mostly verbal? My husband will be looking into paper (text, email) trails tonight. We have the ad that states the 3rd house on the street faces reserve. The house is the same house as ours but we were given the option to choose from the 3 as all three are facing the reserve. the other 3 houses were not advertised on the website as I suppose the same thing was already shown... now the vendor says only the house that was advertised is facing reserve but not the one we bought. Nor the vendor or the agent disclosed this information to us until today when i questioned them. The Agent agreed today that we were mislead into purhasing the property but he keeps saying the vendor didnt tell him and just assumed itt was a reserve
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Chris The Lawyer, Expert

Verbal representations can be used as evidence. The agent should have properly checked the position as it would be easy to do so by looking at the council records

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