The Commerce Commission yesterday released a statement after a Wellington real estate company, Celestine Realty Limited, was fined $7,500 in the Wellington District Court for breaches of the Fair Trading Act 1986 in relation to the use of the term ‘buyer enquiry over'.

The case follows the sentencing of agent Tim Whitehead, in December last year, for advertising a house at ‘buyer enquiry over $380,000' when he knew the vendor would accept no less than $400,000 net of agent's commission.

The Commerce Commission also prosecuted the real estate company Mr Whitehead worked for, Celestine Realty Limited, for the same breaches of the Fair Trading Act 1986. The Court accepted that the company was also responsible for the misleading advertising placed by Mr Whitehead.

The Commission's Director of Fair Trading Adrian Sparrow said, "This case reinforces the duty real estate companies have to ensure their agents do not mislead potential buyers about the price a vendor is prepared to accept."

"All real estate companies are potentially liable for the actions of their agents under the Fair Trading Act, and therefore they should make sure they have procedures and policies in place to encourage compliance by their agents with the Fair Trading Act," said Mr Sparrow.