Mr and Mrs Bonito had been looking to buy a property that would generate income to assist with their mortgage. After their salesperson informed them of an ideal 'home and income' property he was marketing, the Bonitos viewed the home and their offer was accepted. Shortly after moving in, the Bonitos contacted a property management company to help find them tenants for the self-contained flat that was underneath the house. They discovered that the flat did not have the appropriate council consent to be rented out. They were advised the kitchen facilities would have to be removed, or they could go through a very costly process to have the property consented to comply as a legal home and income.

Q1) Identify what Legislation has been breached?

Q2)Has the Real Estate act 2012 has been breached and what code has been breached according to New Zealand Real Estate Act?

Q3)Which Organization would deal with such issues and why in New Zealand?