Do real-estate agents have to disclose known defects in NZ?
Short answer
Yes. Under the REA Code of Conduct and the Fair Trading Act, real-estate agents must disclose all material facts they know or should reasonably know about a property — including known defects, unconsented work, hazards on title, weathertight issues, and so on. Failure to disclose can lead to complaints to the REA (potentially with disciplinary outcomes) and can also be the basis for cancelling the sale or claiming damages.
Source: Real Estate Agents Act 2008. Updated May 2026.
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Check a builderKey facts
- Required by REA Code of Conduct + Fair Trading Act
- 'Material facts' = anything that would affect a reasonable buyer's decision
- Agents must disclose what they know AND what they should reasonably have asked the seller about
- Disciplinary action can include suspension or removal of agent's licence
- Civil claim for non-disclosure is separate — through the courts
What's 'material' in practice
Known weathertight history. Unconsented additions. Meth contamination above the disclosure threshold. Natural-hazard notes on title. Ongoing legal disputes. Recent failed pre-purchase inspections that other buyers walked from. Pending council enforcement.
Agents can't claim ignorance if the seller told them something or if the agent should reasonably have asked. The 'I didn't know' defence only works if the agent had no reason to suspect.
What to do if you find out after settlement
Document what the agent did or didn't say (texts, emails, listing material). Compare to what was actually true at the time of sale.
Complaint to REA: free, written complaint to the Real Estate Authority. They investigate and can discipline the agent's licence.
Civil claim: against the agent (and sometimes the seller) for misleading conduct under the Fair Trading Act. Can recover loss caused by the misrepresentation. Lawyer needed for anything over a few thousand dollars.
Knowing the rules is half the job. The other half is knowing who you're hiring. Check any NZ builder against the public record: company status, licensing and insolvency notices, from the official NZ sources.
Related questions
Sources: Real Estate Agents Act 2008; REA Code of Conduct; Fair Trading Act 1986. General information for NZ homeowners, not legal advice. Building rules change and vary by council, so confirm critical details on the official source before acting. Last updated 2026-05.