by Tim O’Dwyer M.A., LL.B Solicitor Consumer Advocate From time to time some consumer advocates suggest to successful auction bidders, who might have a sudden change of mind, that they should refuse to sign anything and walk away. This is dangerous advice because in most parts of Australia auctioneers may lawfully sign a sale contract on behalf of a reluctant buyer (and hesitant vendor). (See “Winning Auction Bidders Beware“). Even if no signed post-auction contract, a...
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An article by Jennifer Duke “In Victoria underquoting is endemic, rampant, it’s grubby, it’s misleading and deceptive and it’s a fraud on home buyers,” explained Rowe. “Consumer Affairs Victoria lacks the necessary laws and resources to police underquoting. Real estate agents enjoy the luxury of loop holes in the rules to bait home buyers into attending auctions which are outside their budget. This frustrates buyers. Underquoting causes home buyers to waste their time, money and...
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An article by JENNIFER DUKE Carrum Downs couple Maureen Gael Johnson, 58, and Douglas Gordon Johnston, 71, have been charged with more than 70 offences relating to an alleged $1.5 million property development fraud, following an investigation by the Australian Securities and Investments Commission (ASIC). ASIC investigated two companies: Investman Nominees (USA) Pty Ltd and Small Business Management Pty Ltd, of which Maureen Johnston was a former director and current director respectively. Douglas Johnston was the...
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Summary of points by Industry Training Consultants 17/12/2013 There is a real opportunity for both ASIC and the states to work together in drafting a bill for a Commonwealth Real Estate Advocates Act or Property Professions Act, that gives ASIC additional powers to prosecute in other areas such as a “Mortgage Broker” who performs buyer agent activities unlicensed. The benefits of national licensing are not achievable until conduct harmonisation is addressed by a Commonwealth government...
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Author: George Rousos of Industry Training Consultants Some of the activities and practices of the real estate industry, that might be questioned in ethical terms are about the potential to distort pricing information in a market in which it is already very difficult to obtain relevant and dependable information. The pricing information is distorted because some of the conditions associated with the definition of market value have been manipulated, particularly the concept of the arm’s length transaction...
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Shannon Molloy, deputy editor of Australian Property Investor Magazine, has posted a commendably detailed and informative article on-line on the above topic. Discover what the legal and tax implications are, he writes, when converting your family home into an investment property: Whether you’re taking off overseas for a holiday or new job, moving interstate or buying a new house elsewhere, it’s probably crossed your mind to rent out your current family home rather than sell...
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While all property auctioneers, the vast majority of real estate agents and most newspaper property reporters sing the praises and extol the virtues of auctions for buyers and sellers alike, there are a few of us out here in real estate and conveyancing land who have our doubts. Fellow consumer advocate Neil Jenman has long argued that auctions get lower prices. Real estate trainer Gary Pittard recently demonstrated how it is impossible to guarantee the...
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For all the neatly angled flags, shining A-frame notices and freshly-stocked clipboards, the urban warfare of the Sydney open-house inspection has a slyly winking underbelly. Throwing the doors of our most valuable properties open to Joe Public has a way of bringing about the baddest of bad behaviour, from neighbourly sabotage to staged lunacy. Add to that the litany of minor accident booby-traps, alarm debacles and fiendish take-no-prisoners buying strategy, and the Saturday morning house-viewing...
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A newspaper report brings to light one of the perennial problems in real estate – the real estate agent valuation or “appraisal”. It is common practice for real estate agents to overstate the value of real estate in order to win a listing, and then “condition” the vendor into accepting a lower price. Few consumers ever complain about the practice, and the real estate agent is usually able to brush away a complaint with the...
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All too often property investors are lead by the nose by the friendly real estate agent who recommends them to an inspector who, in the expectation of receiving further referrals from that agent, will look for a soft option or solution to any problem that arises. That inspector will not stand up on your behalf without fear or favour because of the risk of loosing future business from the agent. The last example I came across was...
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