A centralised database to record information about earthquake-damaged houses is needed to protect potential buyers, says a Christchurch project manager.

Joanna Hopkinson of GJ Solutions complained to the Real Estate Agents Authority about a house she believed was inadequately repaired before being advertised sale.

Hopkinson said she had obtained an engineering scope which identified significant work required on a house.

Weeks later she drove past to see who had got the job and realised only minor work was being carried out.

The real estate sale package only included an initial EQC scope without the subsequent in-depth engineer's report.

Real estate agents have a duty to tell buyers what they know about a property, but they can't reveal what they don't ...

SUPPLIED

Real estate agents have a duty to tell buyers what they know about a property, but they can't reveal what they don't know, says Kevin Lampen-Smith of the Real Estate Agents Authority.

Hopkinson said the real estate agency owner dropped the listing after she met and discussed the matter, and another agency picked it up.

When she inquired about the property with the new agency, she encountered the same economical treatment of information. It remains on the market.

She complained to the Real Estate Agents Authority and was asked what action she sought. Hopkinson said she was not an aggrieved party, and the issues have not been resolved in her view.

Hopkinson said the full status of a property should be required on land information memorandum held by councils.

Otherwise buyers were liable for considerable costs for engineering reports.

Real Estate Agents Authority chief executive Kevin Lampen-Smith said real estate agents had a duty to tell buyers what they knew about a property but they couldn't reveal what they did not know.

An agent had a responsibility to drop a listing if they knew a vendor was failing to disclose all information.

Some buyers were also discovering more damage and less insurance cover than they expected with as-is-where-is properties.

Insurance Council chief executive Tim Grafton said a policy is legally between the insurer and an an individual, rather than with the property.

When a seller gives a buyer a deed of assignment over an insurance claim, the new owner may be entitled to some of the damage claim but not the whole policy entitlement.

"For example if someone's house was insured for $500,000 and they sell is 'as is' for $350,000 with a deed of assignment in place, the new owner may only be entitled to $150,000 even if costs $250,000 to fix."

Grafton said it was further complicated by the specific insurance policy - whether for replacement or indemnity.

Potential buyers needed to take legal advice and to contact the insurance company, Grafton said.

But an agent could not "dob in" a seller who failed to disclose information to a second agent because of conflict of interest and privacy issues.

An agent who has brokered several as-is-where-is properties, Heather Chick, said buyers had to do their own due diligence and contact their insurer rather than rely on old reports.

"There's still a good market for these houses because it allows some people to buy their first home, but the rental market is saturated at the moment so it might not work out for a property investor."

Chick said it was largely up to the vendor to provide as much information as they wanted, although agents had to declare all they knew to a buyer.

Even buyers of new homes could encounter problems if an insurance payout had been pocketed by the seller for fences and pathways and had failed to replace them.