What must a real estate agent disclose about a builder?
Short answer
Real Estate Agents Authority (REA) rules require agents to disclose material facts about a property that could reasonably affect the buyer's decision, plus any conflicts of interest. That includes known weathertight issues, structural problems, unconsented work the agent's aware of, and any commission or referral arrangements with builders, lawyers, or inspectors. Failure to disclose is grounds for a complaint to REA — and potentially defective sale liability.
Source: Real Estate Agents Act 2008. Updated May 2026.
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Check a builderKey facts
- Real Estate Agents Act 2008 + Code of Conduct
- Material facts must be disclosed in writing
- Includes known defects, unconsented work, hazards on title
- Conflicts of interest with builders / lawyers / inspectors require disclosure
- Meth contamination above 15 µg/100cm² must be disclosed
What counts as 'material'
Anything the agent knows that would affect a reasonable buyer's decision. Weathertight history, unconsented additions on the title, natural-hazard notes, current Tenancy Tribunal cases on rentals, meth contamination above the threshold, planned council works affecting access.
The 'reasonable buyer' standard is broad. When in doubt, agents must disclose.
Conflicts of interest
If the agent has a referral arrangement with a building inspector, mortgage broker, lawyer, or builder, that has to be disclosed in writing. The buyer chooses whether to use the referred service.
Some agents push their preferred inspector hard. Useful tip: get your own independent inspector if anything feels off. The few hundred dollars is cheap insurance.
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; Real Estate Authority — rea.govt.nz. 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.