We thought we'd bought the perfect family home to raise our young child. But the house's old owner was hiding a grim secret...

New Zealand businessman sold leaky home to young couple He's been ordered to pay nearly $1million over the 'cover-up' READ MORE: Real estate guru on the two types of people who can afford homes 

The seller of a water-damaged home has been ordered to pay the young couple he deceived nearly $1million.

Davinder Singh Rahal and his company First Trust Ltd were found by the High Court this week to be liable for damages and repairs after the property was sold in March 2020 to Ameet Bhargav and his wife Renu.

Justice Anne Hinton said Rahal, a Queen's Service Medal recipient in New Zealand, authorised cosmetic repairs to hide the significant water damage and deliberately did not disclose the defect during the sale.

Rahal could now face having the medal, which was awarded for his service to the Indian community, revoked - and could also lose his Justice of the Peace warrants, reports the New Zealand Herald.

The case had already been to court once in 2022, where a similar ruling was found, but returned to court after Rahal disputed the amount of damages and that he had been aware of the water damage.

Davinder Singh Rahal (right) ordered to pay nearly $1million after selling a water damaged home to a young couple (pictured with with former Governor-General Sir Jerry Mateparae as he received the Queen's Service Medal for services to the Indian community in 2012)

A court found Rahal had ordered cosmetic repairs to 'cover up' the mould and wood-rot

A real estate agent who sold the property to Rahal in 2019 told the court that he clearly told prospective buyers there were 'weather-tightness issues' and there were 'obvious signs of leaks and damage' in the house.

The agent said Rahal told him 'that was not a problem as he would fix it' and that he had done similar repairs on other houses.

One elderly prospective buyer who viewed the property when it was for sale told the court it was obvious 'it was a leaky house'.

The properties issues included rainwater leaking inside the structure and causing mould and wood rot.

The young couple who bought the house have lived in the mouldy property for four years, with a young child, as they battled Rahal in court, racking up about $400,000 in legal costs.

The couple were awarded repair costs of $750,000 plus another $250,000 for damages.

They have concerns they will not see any money despite the ruling as Rahal's bathroom company was recently liquidated with $1.8million in unpaid debts.

'We always feel stressed. We are crying every day and we are still not sure if we'll get our money back or not,' Mr Bhargav said.

He added Rahal's behaviour was 'shameful to the Indian community'.

Ameet Bhargav and his wife Renu bought the house in 2020 and have been battling Rahal in court since

Rahal argued he was never told of the issues despite the property smelling 'damp and mouldy'.

'If I ever heard the word "leaky", I will run away from that house ... I would never have proceeded further.'

But Justice Hinton in her ruling said that was 'implausible'.

'I am satisfied that Mr Rahal was well aware of, and in fact authorised, the ''cover up'' works conducted post-purchase,' she wrote.

A real estate agent who worked on the sale and a building inspection company who ticked off on the home as being weathertight settled claims against them last year for undisclosed amounts.

Rahal issued a statement after the court's decision.

'I strongly disagree with the court’s decision, as it was never my intention to mislead or deceive anyone,' he said.

'I also disagree with the amount of money that has been awarded against both First Trust Limited and myself personally.

'First Trust Limited and I both accordingly intend to appeal the judgment to the Court of Appeal.'