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The Gate, the Shower, and the Importance of Crystal-Clear Communication

November 27, 2024

Real estate agents are masters of communication, weaving words to paint vivid pictures of idyllic lifestyles and dream homes. But sometimes, amidst the captivating narratives and strategic negotiations, the simpler details can get lost in translation. And as the recent case of agent Mr. Lemalu (Lemalu v Real Estate Agents Authority (CAC 2205)) highlights, even seemingly minor omissions can lead to significant consequences.

This case, involving the removal of an electric gate and a shower wall, serves as a potent reminder of the critical importance of clear, precise, and proactive communication with purchasers. While the intricacies of fixtures and chattels might seem like legal minutiae, their impact on a sale can be substantial, both for the purchaser's satisfaction and the agent's professional standing.

Mr. Lemalu, the listing agent in this instance, found himself entangled in a disciplinary complaint due to a lack of clarity regarding these items. Whether the gate was a chattel or a fixture became a point of contention, but the crux of the matter lay in the inadequate disclosure to the purchaser. The Tribunal emphasised that even if the gate was legally a chattel, the agent should have explicitly informed the purchaser about its removal. This seemingly minor detail, lost in the communication process, led to allegations of unsatisfactory conduct and ultimately, a costly rectification order (which was overturned on appeal and substituted for an order for training).

The shower wall further compounded the issue, highlighting the need for meticulous documentation, especially when altering a property post-sale agreement. The lack of written consent for its removal and the failure to point it out during the final inspection further solidified the case of unsatisfactory conduct against Mr. Lemalu.

This case underscores a valuable lesson for all real estate agents: when in doubt, over-communicate. Don't assume that purchasers possess the same level of understanding about property specifics or legal nuances. Be proactive, document everything, and ensure that all parties are crystal clear about what is included in the sale, what isn't, and any changes that might occur along the way.

While the legal wrangling over a gate and a shower wall might seem a tad humorous in hindsight, the implications for Mr. Lemalu were far from trivial. It serves as a cautionary tale, reminding us that in real estate, as in life, clear communication is key. A little extra effort in ensuring everyone is on the same page can save a lot of headaches down the road.

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