Property "Off The Market"?

It's a perennial problem for purchasers; estate agents who falsely tell potential purchasers about a property being "taken off the market" when in fact it has been listed with another estate agent.

Consumers should always confirm with the vendor's lawyer, or the vendor personally, if told by an estate agent that a property has been "withdrawn from sale" or "taken off the market". Vendors should have their lawyer ensure that the estate agent will advise enquirers as to the details of the new agent.

Continue reading "Property "Off The Market"?"

Gold Coast Agents Banned

by Tim O’Dwyer M.A., LL.B
Queensland Solicitor & Consumer Advocate
watchdog@argonautlegal.com.au

A Gold Coast restricted letting agent has been banned for 10 years from holding any licence under Queensland's property laws.

Valerie Sant and her company Lumeah Office Management Pty Ltd were disqualified under the Property Agent and Motor Dealers Act 2000 (PAMD Act) and ordered to pay a total of $7258 in fines and costs.

Continue reading "Gold Coast Agents Banned"

Marketeering Solicitors' Conduct Referred To Regulators

by Tim O’Dwyer M.A., LL.B
Queensland Solicitor & Consumer Advocate
watchdog@argonautlegal.com.au

This week Queensland’s Courier Mail has been reporting on the latest over-priced property marketeering scams. TIM O’DWYER reveals more.

(From the Gold Coast Bulletin)

Peter Mericka once told me, "The trouble with lawyer jokes is that lawyers don’t think they’re funny, and non-lawyers don’t think they’re jokes".

The disturbing trouble really is that no one much loves lawyers, and people have become less trusting of this once honourable profession.

Yet one guileless group of non-lawyers has shown an amazing faith in lawyers, particularly certain conveyancing solicitors.

Continue reading "Marketeering Solicitors' Conduct Referred To Regulators"

$20,000 Commission - Money For Nothing

Let's call the real estate agency "Arrow-Maker Realty" (AMR), and their conveyancing company "Arrow-Maker Conveyancing" (AMC). Both operate under the "Arrow-Maker" banner, and clients of one are encouraged to utilise the services of the other.

It sounds like good business to offer a one-stop-shop service. But in this case the arrangement became a conspiracy against the client. It is a perfect example of what consumers can expect with the inevitable infiltration of estate agents into the conveyancing industry.

Continue reading "$20,000 Commission - Money For Nothing"

Govt Can't Do A Lot About Agents' Discrimination

by Tim O’Dwyer
Queensland Solicitor & Consumer Advocate
watchdog@argonautlegal.com.au

In the Queensland Parliament this week a backbencher put this Dorothy Dix question to the Minister for Housing, Robert Schwarten:

"It has been drawn to my attention that a number of real estate agents on the Sunshine Coast are refusing applicants for rental properties because they have Department of Housing bond loans. Can the minister please advise if he is aware of this practice?"

Read the Minister's lame reply.

Continue reading "Govt Can't Do A Lot About Agents' Discrimination"

Help Us To Rattle That Real Estate Industry Cage!

The Australian Real Estate Blog is only a few weeks old, and already we’ve seen evidence of the real estate industry’s cage having been rattled.

Apart from being threatened with an injunction by Goodman Group and James Karavias & Co, (See yesterday's posting) and one nasty email from a disgruntled estate agent, we have been cheered on and encouraged to "fight the good fight" as one solicitor put it, by consumers, lawyers and estate agents alike.

We’re attracting a lot of attention, with over 6,000 hits so far, and we consistently rank in the top 5 real estate blog sites on Blog Top Sites.

But to be of real value to the thousands of visitors who regularly check the Australian Real Estate Blog we need postings and comments.

So, whether you’re a consumer, a lawyer, a conveyancer or an estate agent, send us details of your experiences, complaints and suggestions for a better industry.

You can email us direct at editor@AustralianRealEstateBlog.com.au or use the email link at the top of the right-hand column.

Comments can be made quickly and easily by clicking on the "COMMENTS"link at the foot of each posting.

Outrageous Bank Cheque Fee - $100

From Glenys Dolphin
Melbourne Solicitor
dolphinlaw@bigpond.com.au

I have recently had the pleasure of dealing with Hocking Stuart Estate Agents in particular the St Kilda Office at 204-212 Barkly Street St Kilda as solicitor for the vendor in relation to the sale of my client's property.

Prior to settlement I received a letter in relation to release of deposit moneys which stated inter alia "Please be advised that an administration cost of $100 will be charged to the vendor for a Bank Cheque as we are the accountants processing the Trust Account on behalf of Hocking Stuart". The message was underlined and emphasised in bold print.

Continue reading "Bank Cheque Fee - $100"

Simon's Simple "Mistake”

The price of insider trading in Victoria.

An article from the Jenman website.

Simon Lukauskas is a Melbourne estate agent. Sorry, make that “was” an estate agent .

Yesterday (October 25), the Victorian Civil and Administrative Tribunal (VCAT), found that Simon had committed eight breaches of the Estate Agents Act. He was fined and lost his real estate license.

But, according to Simon, it was all an "unintentional mistake".

Continue reading "Simon's Simple 'Mistake'"

Threat To Sue The Australian Real Estate Blog

In our posting of 19 October, 2005 titled “Best Practice? Not Really”, we blew the whistle on Melbourne conveyancer Goodman Group, and what it describes as its "Solicitor Retained" service. We have now received a letter from law firm James Karavias & Co Barristers & Solicitors, threatening legal action unless our posting is removed.

The letter from James Karavias & Co states,

"Should you fail to provide the relief sought in this letter in relation to the removal of the article(s), written undertaking and written apologies within 48 hours of receipt of this letter our instructions are to issue proceedings seeking injunctive relief…"

The clock started ticking yesterday, 25 October, 2005 at 2.33 p.m.

Now, wouldn’t it be interesting if James Karavias & Co Barristers & Solicitors is also the solicitor retained by Goodman Group for its "Solicitor Retained" service.

Continue reading "Threat To Sue The Australian Real Estate Blog"

Rush To Get Victorian Couple To Sign Up

by Tim O’Dwyer
Queensland Solicitor & Consumer Advocate
watchdog@argonautlegal.com.au

Tony White (not his real name) made his desperate phone call to me from the Bass Strait oil rig where he was working. He had just read comments of mine in Business Review Weekly about Queensland’s property marketeers and their slick, unchecked practices.

He and his wife and their kids from rural Gippsland Victoria had been holidaying on the Gold Coast. After being “verbally apprehended” by a woman at a stand outside the Dolphin Newsagency, they accepted an invitation to a free breakfast seminar.

Continue reading "Rush To Get Victorian Couple To Sign Up"

New Melbourne City Congestion Levy

From the State Revenue Office. Intending purchasers of inner Melbourne parking spaces should be aware of the potential for ongoing costs.

As part of the 2005-06 State Budget the Treasurer announced the introduction of a levy for inner city long-stay and permanently leased parking spaces. After consultation with key groups an implementation proposal has been developed.

The levy will apply from 1 January 2006 and be $400 a year in the first year, rising to $800 in the second year.

Continue reading "New Melbourne City Congestion Levy"

Protecting Consumers From Their Own Trusting Natures

by Tim O’Dwyer
Queensland Solicitor & Consumer Advocate
watchdog@argonautlegal.com.au

(This article first appeared in the Canberra Times)

No-one was surprised when ASIC found that, despite the introduction of the Financial Services Reform Act earlier this year, some financial advisers were failing to disclose "soft dollar commissions" or their disclosure of kickbacks, bonuses and rebates from financial bodies was vague or confusing...

...Consumers may need to be educated (and warned) in the same way they are entertained colourfully and cleverly through radio, TV, movies, the internet and magazines. The backs of buses, billboards and even flashing neon signs may be some of the media to be considered to get this message across loudly and clearly: Don't trust anyone, and if you do, assume they will let you down.

Continue reading "Protecting Consumers From Their Own Trusting Natures"

Phillip Webb Spills The Beans

“They drove these flashy cars…my dad said they got paid a lot and didn’t do much and that appealed to me.”

These observations are what attracted Philip Webb, one of Melbourne’s leading real estate agents, into the real estate industry. But Philip Webb’s interview raises more questions that it answers.

In The Sunday Age weekend magazine Sunday Life, Steve Dow looks at the 5 least trusted jobs, including that of the real estate agent (Sunday Life, October 23, 2005 p.23). Philip Webb of Philip Webb Real Estate provides some insight into what motivates a person to take up a career in real estate, and attempts to explain away the poor public ranking of real estate agents.

Continue reading "Philip Webb Spills The Beans"

More From The REIV Propaganda Pulpit

The CEO of the Real Estate Institute of Victoria (REIV) is at it again. In his weekly propaganda piece in The Age (Domain Saturday 22 October, 2005 p.6), Mr. Raimondo offers his understanding of the legal concepts of offer and acceptance.

Why does Mr. Raimondo continue to “educate” consumers with pro-industry propaganda when he should be focussing on the improper conduct that is the norm in the real estate industry?

Let’s examine this week’s offering.

Continue reading "More From The REIV Propaganda Pulpit"

Tame Lawyers Help Real Estate Fraudsters

by Tim O’Dwyer
Queensland Solicitor & Consumer Advocate
watchdog@argonautlegal.com.au

The email came after a newspaper column of mine. Before throwing mud at others, suggested the writer, I should clean up my own (legal) profession. There would always be crooks, I was reminded...

...Let me now reveal how the criminal justice laws did in a comparatively rare instance catch, convict, and stop a whole rat-pack of real estate crooks – and their solicitor accomplice.

(A version of this article first appeared in Australian Property Investor)

Continue reading "Tame Lawyers Help Real Estate Fraudsters"

Land Tax Bill Second Read

From the Law Institute of Victoria


The Land Tax Bill was second read yesterday.

The government indicated that the aims of the Bill were to: improve clarity, overcome structural weaknesses, remove obsolete provisions, overcome inconsistencies in wording and bring the Land Tax Act within the coverage of the Taxation Administration Act.

The LIV reviewed the Bill and considered that these aims were not all achieved. The LIV's submission can be viewed at the LIV website.

Did The Minister's Dog Eat Hubby's Homework?

by Tim O’Dwyer
Queensland Solicitor & Consumer Advocate
watchdog@argonautlegal.com.au

Queensland’s Fair Trading Minister Margaret Keech wants apologies from me, The Gold Coast Bulletin and the Albert & Logan News, despite not promptly recognizing conflicts of interest when her husband was – in her words – "seeking to renew his employment in the property industry".

See the undertaking at: Ecom Realty Pty Ltd – EU014.05.pdf (960.38 Kb)

Continue reading "Did The Minister's Dog Eat Hubby's Homework?"

"Best Practice"? Not Really

A Melbourne conveyancer called "Goodman Group" is advertising that his "Solicitor Retained". service has been described as "best practice" by staff of the Legal Practice Board. Our enquiries reveal that the Legal Practice Board has no knowledge of this, and does not agree that the retaining of a solicitor by a conveyancer is of any benefit to consumers at all.

In fact, it is not possible for a conveyancer to retain a solicitor to perform legal work for conveyancing clients of the conveyancer, as a solicitor and client relationship cannot exist as between the solicitor and the conveyancer and the same solicitor and the client of the conveyancer. Such a situation would result in an outrageous conflict of interests.

We hope that the Legal Practice Board will discuss the matter with Mr. Goodman.

Whistle-Blowing On Insider Trading In The Real Estate Industry?

by Tim O’Dwyer
Queensland Solicitor & Consumer Advocate
watchdog@argonautlegal.com.au

Below is part of an anonymous letter I received by fax this month:

Recently I watched one of the current affair programs, and on it the big boss of [MAJOR REAL ESTATE FRANCHISE GROUP] was talking about a principal asked to leave the group because he was selling properties cheap to his relatives. The group did not tolerate such behaviour... Ha Ha they don’t tolerate it when it becomes public...

...They accepted the payment and agreed not to contact you again. We were told to keep quiet about everything...

Continue reading "Whistle-Blowing On Insider Trading In The Real Estate Industry?"

Buying A House With A Friend May End The Friendship

The problem is if you and your "friend" have a fight - what do you do? Can one of you force the sale? Can one of you buy the other out? Who decides? Can you force the sale on the open market?

Law Central offers a Buy a House with Friends Agreement for those who want to formalise such arrangements.

Bad Apples Degrade Legal Profession

by Tim O’Dwyer
Queensland Solicitor & Consumer Advocate
watchdog@argonautlegal.com.au

The legal profession must expect the scrutiny of the media as part of a legitimate process of accountability, Queensland’s Chief Justice Paul de Jersey told a Gold Coast District Law Association luncheon.

"One always hopes," Chief Justice de Jersey said, "for fair and balanced reporting".

Although invited to speak to the Association’s solicitor and barrister members about the rule of law, the Chief Justice chose more topically for his subject the legal profession’s relationship with the media. Solicitors, barristers, magistrates and judges collectively constitute this profession which His Honour regretted was "condemned broadly because of the infractions of only a few."

Continue reading "Bad Apples Degrade Legal Profession"

Land Values Research Group

We've had our attention drawn to an interesting website called The Land Values Research Group concerns itself with the value of land in Australia. Check out the article "Collapsing Natural Resources".

Two Tales Of Toxic Waste - Civil Action Versus Civic Action

by Tim O’Dwyer Solicitor

"It's a gold mine," says actor John Travolta playing real-life attorney Jan Schlichtmann in the movie A CIVIL ACTION. "Yeah, fools' gold," muttered former Kingston resident Thelma Towers in a suburban cinema.

For Thelma Towers the futile nine year legal battle waged on behalf of eight families from working class Woburn was all too reminiscent of the toxic waste wars she and other Kingston residents had to fight without lawyers ten years ago here in Queensland.

Continue reading "Two Tales Of Toxic Waste"

Conveyancers Leaving A Trail Of Destruction

I've just got off the phone from a distraught woman (let's call her "Fran") who should have been advised by her conveyancer to seek legal advice from a lawyer.

Fran has been looking after "Uncle" (close family friend, not related), because Uncle's family are not interested in him. Fran has paid nearly $200,000 into a house purchased some years ago in Uncle's name. Any lawyer who realised that the client (Fran is the one who arranged everything) was paying funds to purchase a property for another person would be duty-bound to advise the client about matters of risk, security etc. The issue of conflicting interests would also have to be addressed.

Continue reading "Conveyancers Leaving A Trail Of Destruction"

Agents Playing Dirty

by Tim O’Dwyer Solicitor*

Real estate agents can earn big money on their sale commission. But only after convincing sellers to list their properties for sale, then finding and convincing buyers to buy those properties.

Consequently much consumer protection law is about regulating the conduct of agents when dealing with seller clients and buyer customers. How well these laws are policed and enforced by the Konsumer Kops is another question...

Continue reading "Agents Playing Dirty"

Avoid Referred Solicitors & Conveyancers

We have had two examples within the past week of solicitors acting in the interests of the estate agent, and contrary to the interests of their own client.

Continue reading "Avoid Referred Solicitors & Conveyancers"

Reading Between The Regulator's Lines

by Tim O’Dwyer
Queensland Solicitor & Consumer Advocate
watchdog@argonautlegal.com.au

When the Chairman of the Australian Competition and Consumer Commission, Graeme Samuel, addressed a gathering of Real Estate Institute of Victoria members last year he drew flack from many quarters.

Samuel’s speech upset not only from Kareena Ballard, then President of the Real Estate Institute of Australia, in a letter published in the Financial Review, but also from consumer advocate Neil Jenman.

Continue reading "Reading Between The Regulator's Lines"

Trusting Nurse Betty

by Tim O’Dwyer
Queensland Solicitor & Consumer Advocate
watchdog@argonautlegal.com.au

Three years ago a very trusting, mature-aged nurse (let’s call her "Nurse Betty") moved to Queensland from interstate, and approached a suburban Brisbane real estate agency to help her find a home to buy. She was shown a property she really liked.
This house was situated in the notoriously flood-prone Brisbane suburb of Oxley.

Continue reading "Trusting Nurse Betty"

REIV Misses The Point – Again!

From his propaganda pulpit in The Age (Domain, The Age Saturday 8 October, 2005 p.6), CEO of the Real Estate Institute of Victoria, Mr. Enzo Raimondo, explains the convoluted means by which estate agents, in a clear conflict of interests, advise their clients with regard to "pricing".

When will Mr. Raimondo and the REIV accept that there is a conflict of interests when a commission-driven salesperson tells a vendor what to expect to receive for a property.

Continue reading "REIV Misses The Point – Again!"

Should conveyancing solicitors act for both parties?

by Tim O’Dwyer
Queensland Solicitor & Consumer Advocate
watchdog@argonautlegal.com.au

The simple answer to the above question is no. But I guess many of us will, from time to time, act for both parties in conveyancing transactions. And, frankly, many of us will continue to do so until the governments in our various states and territories legislate against this practice to properly protect conveyancing consumers. Our professional and industry bodies may skirt around the edges with cautious codes of conduct, but sooner or later, the law makers will have to step in and outlaw what we collectively can’t or won’t.

Continue reading "Should conveyancing solicitors act for both parties?"

Wrap Gone Wrong

by Tim O’Dwyer
Queensland Solicitor & Consumer Advocate
watchdog@argonautlegal.com.au

Lynette Kent is not your usual wrap victim. The ultimately disastrous deal, which this aged pensioner got into, was also not your regular rent-buy wrap...

...wraps may be good things to stay out of – whether you are a wrapper or a wrappee.

Continue reading "Wrap Gone Wrong"

Free Cheese In The Mouse Trap

The website of Whatpricemyhouse.com advertises to consumers who want to know the "price" of their home, but here's what it tells estate agents:

"Here's How Any Real Estate Agent Can Trade-InTheir 80-Hour-A-Week Job, and instead ...

Work Only 25 Hours A Week Sitting On Their Bum (At Home Or On Holiday) ... And Still Pull In $200,000-$300,000 A Year - no hassle at all."


This offer of "free cheese" is little more than bait to lure unsuspecting consumers into a database of estate agent "leads".

Continue reading "Free Cheese In The Mouse Trap"

When “Consumer Affairs” Engages In Misleading & Deceptive Conduct

Consumer Affairs Victoria (CAV) is regarded by consumers as something of a guardian angel. But what if those white fluffy CAV wings turn out to be attached, not to a soaring supernatural protector, but to an earth-bound and very lame duck?

Just take a look at the CAV booklet titled, "Real Estate – A Guide For Buyers and Sellers". This publication has been promoted through expensive advertising campaigns in the print media, on the CAV website, and in the offices of local Members of Parliament, as well as those of banks, estate agencies and lawyers.

One could be forgiven for assuming that the text for the booklet was provided by the Real Estate Institute of Victoria (REIV), as it is poorly researched, patronisingly simplistic, and misleading in its interpretation of the law. (See previous postings regarding the REIV’s contributions to the development of consumer awareness.)

For example, the following statement appears on page 16:

"Anyone who is in the business of buying, selling, leasing or otherwise dealing with real estate or a business on behalf of any other person, must hold an estate agent’s licence or be employed by a licensed estate agent as an agent’s representative…Only deal with a licensed estate agent or an agent’s representative."

This statement is both misleading and deceptive. The truth is that any lawyer can act on behalf of a client who is buying or selling real estate. In fact, all legal practitioners are "estate agents" under the Estate Agents Act 1980.

Similarly, a person who is buying real estate may decide to engage a lawyer to represent them during negotiations, and to prepare the terms and conditions of their offer. Does CAV recommend that a purchaser should consider engaging a legal professional as their advocate in such circumstances? No. CAV recommends that a consumer should engage someone who has no training in law, who is not qualified to draft terms and conditions, and who is prohibited from giving legal advice – an estate agent! Here’s what CAV says on page 17:

If you use a buyer’s advocate, make sure that he or she is a licensed real estate agent.

Why should a consumer make sure that the person they engage as an advocate is an estate agent rather than their lawyer? There is no explanation.

We took CAV to task over this issue some time ago, but they replied that the booklet reflects the law in Victoria. Well, what can you say when you’ve printed thousands of booklets and your reputation as a guardian angel is riding on them? Quack!