His advertisement described them as “ripe for renovations” and perfect for astute investors and land bankers.
Property records show Tennakoon’s colleague at the Manukau office, Eshpreet Kohli, ultimately took ownership of the properties in January this year via his company Nile Ventures No.1 Ltd.
The Real Estate Agents Act 2008 requires that, when a real estate agent seeks to buy properties on sale through their office, they must tell the seller and get their signed consent for the deal to go ahead.
The law aims to protect sellers and avoid conflicts of interest.
Kāinga Ora told the Herald it had not been “advised prior to the [Reseda properties’] settlement that the purchaser was associated with the selling agent”.
Bryan Thomson, managing director of Harcourts NZ, said his team had only recently been made aware of concerns about the sale after being contacted by the Herald, and would be reviewing the matter.
“[We] are currently looking into it. We take our obligations seriously and will review the details before making any further comment.”
Tennakoon said his agency sold the homes to an “independent purchaser”.
“The agreement for this transaction was entered into with an independent purchaser following a robust, multi-offer process.
“That purchaser later nominated another buying entity, with that nomination managed between the parties’ solicitors rather than through the agency.
“I take my professional responsibilities seriously, and I’m referring this matter to the Real Estate Authority.”
Kohli declined to comment when approached by the Herald.
One of the Reseda Pl homes bought in the deal now being scrutinised. Photo / Harcourts
The Reseda properties are among more than 250 former state housing properties sold in Auckland since July for a combined $179m, according to a Kāinga Ora self-published list.
A Herald analysis of Auckland sales shows developers, real estate agents and other industry professionals have been involved in most of the notable sales.
Kāinga Ora refused to comment when asked if it would pursue the matter further or make a complaint.
“This is a matter for the REA,” a spokeswoman said.
The $1.9m price paid for the Reseda properties was close to the three properties’ combined $1.92m council valuation.
Caroline McDowall, Kāinga Ora’s manager for the housing selivery group, said that, despite not being informed about the end buyer, it believed it had achieved the “strongest overall commercial outcome”.
Harcourts Manukau owner and listing agent Iresh Tennakoon and his colleague Eshpreet Kohli, who became the ultimate buyer of the three state houses at 8A-8C Reseda Pl in Papatoetoe. Photo / Harcourts
Her team always assessed buyer offers for taxpayer-owned state homes against the “same commercial criteria – price, independent market value, conditions, and certainty of settlement”.
She said 8A-8C Reseda Pl “had been on the market for several months, and we had declined earlier offers that did not meet our criteria”.
“The offer we accepted was unconditional and provided the strongest overall commercial outcome, along with a high degree of certainty the sale would proceed.”
The REA said it could not comment on specific cases.
“The Real Estate Agents Act 2008 (the Act) and related rules in the Code of Conduct set clear expectations about managing conflicts of interest.”
Conflicts could arise in many situations, and it was important for licensees to take their obligations seriously because failing to handle them properly could result in disciplinary action, it said.