The Real Estate Information Centre

Contract Switching & Lies At Ranges First National RE

Peter Mericka — Tue, 26 Aug 2008 23:49:00 GMT

OPINION by Peter Mericka B.A., LL.B Real Estate Lawyer Qualified Practising Conveyancer Victoria Director Lawyers Real Estate Pty Ltd Hot on the heels of the contract switchers at Barry Plant Real Estate Croydon comes Ranges First National Real Estate of Belgrave. But things get much worse when the switching of contracts is compounded with lies and threats as part of an attempted cover-up. The contract switch As usual (see other postings on contract switching ), we told the Ranges First National...(read more)

Estate Agent Theft Threat Increasing

Peter Mericka — Sun, 24 Aug 2008 00:11:00 GMT

OPINION by Peter Mericka B.A., LL.B Real Estate Lawyer Qualified Practising Conveyancer Victoria Director Lawyers Real Estate Pty Ltd According to Chris Vedelago, writing for The Age newspaper, "Falling sales levels and the prospect of a weaker market has led more than one in 10 real estate companies to consider selling up...The number of companies looking to move out of real estate has quadrupled...The Real Estate Institute of Victoria says agency revenues have dropped 20%." When things get tough...(read more)

The Conviction of John Talia

Peter Mericka — Fri, 22 Aug 2008 21:15:00 GMT

OPINION by Neil Jenman Consumer Advocate A former Ray White franchise agent, John Michael Talia, has been convicted of obtaining property by deception . Last Thursday (August 14, 2008), after the guilty verdict was read out in the Victorian County Court, John Talia was remanded in custody. Locked up. Well done prosecutors. It's about time that agents who rob the naïve and the elderly were properly punished - and the proper punishment for agents such as John Talia is a criminal conviction and a stint...(read more)

Geoff Thompson - Contract Switching At Barry Plant RE

Peter Mericka — Mon, 18 Aug 2008 01:12:00 GMT

OPINION by Peter Mericka B.A., LL.B Real Estate Lawyer Qualified Practising Conveyancer Victoria Director Lawyers Real Estate Pty Ltd Geoff Thompson is the Director of Barry Plant Real Estate in Croydon Victoria, and the Barry Plant Real Estate tag line is "The red carpet experience". I felt that the red carpet had been pulled out from under me and my client when Geoff Thompson's sales representative Pauline Ferguson switched contracts without my knowledge and without any explanation. Secret contract...(read more)

Move Over Marx Brothers, Here Comes the Bligh Government

Peter Mericka — Thu, 14 Aug 2008 23:17:00 GMT

by Tim O'Dwyer M.A., LL.B Solicitor Consumer Advocate watchdog@argonautlegal.com.au Real estate consumer protection goes west as a result of a convoluted dog’s breakfast amendment to the law, according to Tim O'Dwyer. Linda Lavarch MP noticed two Legal Aid lawyers sitting in the public gallery during a recent session of State Parliament. “They had tears in their eyes as the Attorney rose to speak,” she later told her parliamentary colleagues before explaining how these lawyers saw firsthand the misery...(read more)

Enzo Raimondo Must Resign

Peter Mericka — Mon, 04 Aug 2008 22:36:00 GMT

Opinion by Neil Jenman Consumer Advocate Victoria's real estate industry is embroiled in another scandal. This time, the body at the centre of the scandal is the Real Estate Institute of Victoria (the REIV ) and its CEO, Mr Enzo Raimondo. The REIV is an industry association whose members comprise around 80 per cent of the state's 6,000 estate agents. The REIV's purpose is to protect the interests of its member agents. One of its aims is to convince the public that REIV agents are honest and ethical...(read more)

David Sowersby - Serial Switcher of Contracts

Peter Mericka — Thu, 31 Jul 2008 05:14:00 GMT

OPINION by Peter Mericka B.A., LL.B Real Estate Lawyer Qualified Practising Conveyancer Victoria Director Lawyers Real Estate Pty Ltd David Sowersby is the Director of Walshe & Whitelock Real Estate, Brunswick and an Associate of the Real Estate Institute of Australia. David Sowersby is also a "contract switcher". Some years ago I pounced on Sowersby for "switching" contracts, and thought he had changed his ways. Unfortunately, it seems that when you've been in the industry as long as Sowersby...(read more)

Transparency? More Like A Two-Way Mirror!

Peter Mericka — Wed, 23 Jul 2008 09:41:00 GMT

OPINION by Peter Mericka B.A., LL.B Real Estate Lawyer Qualified Practising Conveyancer Victoria Director Lawyers Real Estate Pty Ltd Estate agents have a marvelous talent for redefining words so that their everyday meaning is distorted to the point that they become oxymorons. The use of the word "transparent" by Real Estate Institute of Victoria CEO Enzo Raimondo suggests that the transparent "window" offered to consumers is really a two-way mirror . We have previous demonstrated the way in which...(read more)

The Tough Truth

Peter Mericka — Tue, 01 Jul 2008 00:30:00 GMT

by Neil Jenman Consumer Advocate Right now, in a lot of areas of Australia, there are a lot of unhappy property sellers. They can't sell. In some areas, some properties have been on the market for six months, even longer. To sellers, an on-going unsold property can be mental agony. It's like torture. They all have a breaking point, the day when they say, "Enough, I can't take it anymore, just sell it." Ironically, once they make that final decision to sell - no matter what the price - the sellers'...(read more)

One Sale - Two Commissions

Peter Mericka — Thu, 26 Jun 2008 21:00:00 GMT

by Tim O'Dwyer M.A., LL.B Solicitor Consumer Advocate watchdog@argonautlegal.com.au Carly Gillard was staggered, after settling the sale of her Northern New South Wales property, to find herself facing commission claims from two real estate agencies. Her property had been listed with both agencies, but only one secured the sale. She soon filed a claim with the NSW Consumer, Trader and Tenancy Tribunal to determine whether she was liable for two commissions and, if only one, which agency she should...(read more)

Latest "Clayton's" Finanace Approval Letter

Peter Mericka — Sun, 15 Jun 2008 20:13:00 GMT

by Tim O'Dwyer M.A., LL.B Solicitor Consumer Advocate watchdog@argonautlegal.com.au This latest "Clayton's" finance approval letter is hot off my fax machine. Last year I reported on an upbeat broker’s keenness to show me that my clients’ finance had been “approved” - by way of a copy of a letter from the lending bank confirming that the loan application had been “Unconditionally Approved.” (see: Clayton's Finance Approval (The Approval You Have When You Don't Have Approval) ). Responsible conveyancing...(read more)

Be Cautiously Kind To Sellers' Agents

Peter Mericka — Sun, 01 Jun 2008 21:42:00 GMT

by Tim O'Dwyer M.A., LL.B Solicitor Consumer Advocate watchdog@argonautlegal.com.au Although agents use slogans like "Nobody does it better", "The right advice", "More personal attention" and "We'll look after you", they are really offering buyers something for nothing. At all times the agency s legal duty is to their clients, the sellers. The agent s prime job is to find a buyer at "the best possible price and contractual terms for the seller". The least expensive part of buying a home is the looking....(read more)

Victoria's Section 32 Statements - Tread Warily In This Conveyancing Minefield

Peter Mericka — Mon, 19 May 2008 19:41:00 GMT

by Tim O'Dwyer M.A., LL.B Solicitor Consumer Advocate watchdog@argonautlegal.com.au Victoria’s solicitors have been informed by their Legal Practitioners’ Liability Committee (“LPLC”) that their mishandling of property conveyancing is one of the most costly sources of clients’ negligence claims. Whether acting for vendors or purchasers, conveyancing solicitors have been warned to be especially careful regarding Section 32 Statements. Section 32 of Victoria’s Sale of Land Act 1962 requires vendors...(read more)

Barry Plant Real Estate - "Gazumping" Clause

Peter Mericka — Tue, 06 May 2008 20:39:00 GMT

It would appear that Barry Plant Real Estate has adopted the tactic of having a "gazumping" clause inserted into real estate contracts. We again warn consumers against allowing estate agents to tamper with the contract. A "gazumping" clause is a special condition which is inserted into a purchaser's offer by an estate agent. Effectively, it allows a latecomer to the sale to submit a "bid" to the vendor. If the latecomer's bid is on "more favourable terms" than those in the existing contract, the...(read more)

How I Became An Estate Agent's Hero

Peter Mericka — Wed, 23 Apr 2008 05:34:00 GMT

by Tim O'Dwyer M.A., LL.B Solicitor Consumer Advocate watchdog@argonautlegal.com.au Brisbane conveyancing solicitor Chris Bridge became concerned when he noticed that his buyer client’s contract included a special condition authorising the pre-settlement release of the selling agent’s commission. Such a “pre-draw” practice may be legal elsewhere if the contracting parties agree, but not in Queensland where Section 385 of the Property Agents and Motor Dealers Act (PAMDA) permits agents to take commissions...(read more)

Title Insurance

Peter Mericka — Tue, 15 Apr 2008 07:40:00 GMT

by Nicola Wilson Business Development Manager Victoria and South Australia First Title - Title Insurance Most land in Victoria is registered under what is known as the "Torrens System" of land registration. While the system was adequate when introduced in the 1800's, Sir Robert Torrens did not anticipate the way in which 3 levels of government would affect land ownership a hundred years later. Nicola Wilson, Business Development Manager - VIC & SA for First Title explains some of the ways in...(read more)

Was Enzo Raimondo Gagged?

Peter Mericka — Wed, 09 Apr 2008 06:13:00 GMT

by Peter Mericka B.A., LL.B Real Estate Lawyer Qualified Practising Conveyancer Victoria Director Lawyers Real Estate Pty Ltd Enzo Raimondo, CEO of the Real Estate Institute of Victoria, recently accused me of making comments that were "deliberately mischievous and untrue". But when called upon to nominate any such statements or to provide the evidence, Enzo disappeared from the radar. Has he been gagged by the REIV? Allegations From Enzo Raimondo In my previous posting I took Enzo Raimondo to task...(read more)

Beware of Enzo Raimondo's "Wheelers & Dealers"

Peter Mericka — Thu, 03 Apr 2008 10:41:00 GMT

by Peter Mericka B.A., LL.B Real Estate Lawyer Qualified Practising Conveyancer Victoria Director Lawyers Real Estate Pty Ltd There are few things more dangerous for real estate consumers than estate agents who fancy themselves as "wheelers and dealers". They are usually the ones who cause the wheels to fall off real estate transactions, usually because one party or the other feels that they have been let down. Enzo Raimondo not only acknowledges that estate agents like to do a bit of "wheeling and...(read more)

How To Save Your Home

Peter Mericka — Tue, 25 Mar 2008 23:28:00 GMT

by Neil Jenman The word 'mortgage' is French in origin. It means to make a pledge upon which your life depends - or, literally, an agreement until death. In today's debt heavy world a mortgage really has one of two meanings. Either you destroy (kill) it or it destroys (kills) you. Around one million Australians are now suffering the most talked-about 'material disease' of today - mortgage stress. The symptom of mortgage stress is a mortgage payment which is more than thirty per cent of your net income....(read more)

Preventing Estate Agents From Preparing Contracts

Peter Mericka — Wed, 12 Mar 2008 18:21:00 GMT

by Tim O'Dwyer M.A., LL.B Solicitor Consumer Advocate watchdog@argonautlegal.com.au After firing more than a few verbal bullets over recent months at Queensland’s Attorney-General (and Fair Trading Minister) Kerry Shine in The Courier Mail and Gold Coast Bulletin newspapers, on ABC radio and here in the Australian Real Estate Blog, I finally got a response (of sorts). The critical issues, of course, had been the largely unregulated role of legally unqualified real estate agents in the preparation...(read more)

Just How Many Phantoms Are Out There?

Peter Mericka — Tue, 04 Mar 2008 22:57:00 GMT

by Peter Mericka B.A., LL.B Real Estate Lawyer Qualified Practising Conveyancer Victoria Director Lawyers Real Estate Pty Ltd A comment on our recent posting about "phantom" property listings makes me wonder whether we may have only just scratched the surface of this problem. Just how many phantom properties are out there? The comment appears on our posting " Cameron Fisher - Something Very Fishy !", and is reproduced below. “You should check out ICON properties they only have a hand full of genuine...(read more)

Was Phantom Fisher Trying to "Phantomise" Me?

Peter Mericka — Tue, 04 Mar 2008 21:58:00 GMT

by Peter Mericka B.A., LL.B Real Estate Lawyer Qualified Practising Conveyancer Victoria Director Lawyers Real Estate Pty Ltd Yesterday I received a telephone call from my Internet Service Provider (ISP) about a phantom phone call. According to the ISP guys, the phantom phoner didn't say who he was at first, but he made it clear that he wanted the Australian Real Estate Blog to disappear - just like a phantom property advertisement. It seemed that Phantom Phisher was trying to phantomise me! A Phantom...(read more)

Cameron Fisher - Something Very Fishy!

Peter Mericka — Thu, 28 Feb 2008 06:27:00 GMT

by Peter Mericka B.A., LL.B Real Estate Lawyer Qualified Practising Conveyancer Victoria Director Lawyers Real Estate Pty Ltd On Tuesday 26 February, 2008 I typed "Docklands" into the search facility at www.realestate.com.au. On page 4 of the Docklands listings was a Feature Listing under the banner of Changing Places, titled "DOCKLANDS $730,000-750,000 Elevated Waterfront Residence 70 Lorimer Street". A client had called me and complained that there was "something very fishy" about this advertisement....(read more)

Don't Be A Party To Mortgage Fraud!

Peter Mericka — Tue, 26 Feb 2008 19:49:00 GMT

by Tim O'Dwyer M.A., LL.B Solicitor Consumer Advocate watchdog@argonautlegal.com.au Last week I received this email: "Tim, I was wondering if you could help me with a strange clause. A woman wants to purchase a property for $500,000. She wants to get extra money from the banks to cover deposit, so this is what she proposes: Contract Price: $670,000 30% deposit (deposit is not physically paid, but sellers acknowledge that the deposit has been) Then at settlement, she pays the $500,000. This means...(read more)

What's Phillip Webb Really Declaring?

Peter Mericka — Wed, 20 Feb 2008 09:58:00 GMT

by Peter Mericka B.A., LL.B Real Estate Lawyer Qualified Practising Conveyancer Victoria Director Lawyers Real Estate Pty Ltd When estate agents can't or won't negotiate on behalf of their vendor clients we see the " Buyer Declaration " trotted out as a means of proving to the vendor that there is no point in trying to negotiate a better price. We received the Phillip Webb Real Estate version of the Buyer Declaration from Phillip Webb real estate agent Martin Froese. At first glance the Buyer Declaration...(read more)