Despite breaching the Fair Trading Act for misleading a buyer, real estate agent Tim Whitehead left the High Court without a conviction and remains a licenced agent.

In 2004 Mr Whitehead advertised a Wellington property as seeking enquiries above $380,000 though the vendor wouldn’t consider less than $400,000.

After a lengthy court process in 2007 Mr Whitehead was fined $7500 in the Hastings District Court for three charges of breaching the Fair Trading Act on misleading use of a ‘buyer enquiry over’ price.

When The Real Estate Agents Act 2008 came in to force detailing that any agents with a conviction can’t hold a licence for five years, Mr Whitehead appealed his conviction to dodge being banned from his industry for that length of time.

Justice Rhys Harrison said the consequence of a five year lockout from selling houses was out of all proportion to the gravity of the offending, and discharged Mr Whitehead without any conviction on all three offences.

“However, the judgment concludes with a stern warning from Justice Harrison to the real estate industry that contraventions of the Fair Trading Act now carry a serious consequence,” the Commerce Commission said.

Justice Harrison said the purpose and policy of the Real Estate Agents Authority was unequivocal.

“It is a legislative response to public concern about the unacceptable practices of a small but damaging minority in the real estate profession. It is designed to have a remedial effect by proscribing certain conduct and, in particular, to exclude from the profession’s ranks those who are convicted on contravening the FTA. The message is now unmistakeable.”

Commerce Commission fair trading manager Greg Allan said the financial consequences to Mr Whitehead on being banned for five years would be from conduct that happened “well before the Real Estate Agents Act was envisaged or enacted”.

Mr Whitehead remains a full time real estate agent holding a current active salesperson licence that expires at the end of this month.