If you believe an issue identified in a property inspection report needs to be disclosed, explain to the vendor why it should be shared and follow up the conversation in writing to summarise what was discussed.
Weigh up the information and the risk of not sharing these details. Discuss this with your supervisor or manager and the vendor, and potentially seek legal advice.
If you believe the issue needs to be disclosed and the vendor doesn’t agree, you may need to walk away from the transaction.
This topic was addressed in a Tribunal decision. The Tribunal commented:
Where a client instructs that information be withheld from a purchaser, and a licensee considers that the information should be disclosed under the rules, a licensee should raise and discuss the issue in detail with [their] vendor client. If the client maintains that information must be withheld, and the licensee remains of the view that it should be disclosed, the licensee must then decline to act further on that transaction.
A licensee must be very clear with a client when a conflict over disclosure arises. If the client maintains that information be withheld that the licensee considers should be disclosed, the licensee’s duty is to cease to act; not to disclose the information contrary to the client’s instructions.
Read the full decision at justice.govt.nz [pdf, 50KB](external link)