Purchasers Treated Like Garbage

by Peter Mericka B.A., LL.B
Real Estate Lawyer and Qualified Practising Conveyancer Victoria

It seems that many estate agents believe purchasers have no rights whatsoever. No wonder so many purchasers complain that they are treated like garbage. Here's a recent example.

Richard Carter of Carter Real Estate in Ringwood is an estate agent and a former President of the Real Estate Institute of Victoria who promotes himself on the basis of experience, ability and integrity.

But what if the person who promotes himself as the honest and helpful estate agent is little more than a puppet, covering the hand of a master manipulator?

That was the experience of an intending purchaser who submitted an offer to Richard Carter recently.

And whose hand was left clutching the purchaser's offer after the puppet was removed?

To the purchaser's horror, the hand inside the Carter puppet turned out to be that of well-known real estate identity Ian Reid of Ian Reid Vendor Advocacy!

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Blind Freddy Would Have Spotted The Problems

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


Solicitor Bruce Simpson is a mate of mine. His little one-man legal office is in Cooroy, just inland from Noosa on Queensland’s Sunshine Coast. He does a fair bit of conveyancing and, as a result, does a fair bit of whinging at home to his wife Kathryn. Like the ever-supportive spouses of so many Queensland conveyancing solicitors, Kathryn has to hear over and over again Bruce’s constant complaints about deceptive agents, flawed contracts, unsatisfactory building inspections and outstanding council approvals and inspections.

Finally school-teacher Kathryn had had a gutful. She sat down at the Simpson PC one night and proceeded to knock out a five-page letter to Queensland’s Sunday Mail. She set out all of Bruce’s complaints and concerns. Then got Bruce to sign it before she posted it next morning. The letter soon landed on the desk of the Sunday Mail’s property writer, Ronnie Girdham. She was stoked and started working on a story.

I came into the picture when Ronnie wanted to interview and photograph of couple Bruce’s conveyancing clients.

Bruce quickly gave Ronnie my name and number with the assurance that I had heaps of willing clients with real estate horror stories.

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Contracts - Find The Devil In The Detail

Purchasers should take care before signing a contract to purchase real estate, particularly at auctions. Special conditions can be used to pass a vendor's risk to an unsuspecting purchaser.

We have shown that estate agents often insert nasty special conditions into contracts, but they're not the only ones. Lawyers and conveyancers do it too.

A purchaser, intending to purchase at auction, asked for pre-auction legal advice on a contract prepared by Davis Lawyers of Melbourne. The contract contained the following special condition:

"12. The Purchaser warrants that he has not been introduced to the Vendor or to the property directly or indirectly by any Real Estate Agent other than the Agent herein described or other person who might be entitled to claim commission from the Vendor in respect of this sale and the Purchaser shall indemnify and keep indemnified the Vendor, at all times, notwithstanding settlement hereof from and against any claim or liability for commission or damages resulting from a breach of this warranty."

We advised our client that this special condition could require her to pay the vendor’s estate agency bill, possibly costing her many thousands of dollars. To explore the issue further we asked Davis Lawyers a series of questions.

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Open For Inspection - Invitation For Theft

Reports of burglary and theft associated with property inspections conducted by real estate agents indicate that thieves are relying on estate agents to provide easy access homeowners' valuables.

Thieves no longer have to rely on jemmy bars to gain access to homes. Estate agents are providing easy access to valuables for clever thieves who "shop on the internet" for theft opportunities.

According the Sydney Morning Herald:

"The topic of theft - and specifically thieves using open houses, virtual tours and floor plans to steal goods from people's properties - has been an ongoing issue within the industry since the rape and murder of Melbourne selling agent Lorelle Makin last September."

(The Sydney Morning Herald "Safe as house inspections" Domain p.8)

What's the real estate industry's reaction? Estate agents are now being advised to include a clause in contracts with their vendor clients that indemnifies the agent against theft or damage during a property inspection.

We believe it's time to take estate agents and thieves out of vendors' homes!

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Mum & Dad Investors Ripped-Off

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

Queensland’s Courier Mail newspaper has reported how a NSW businessman has failed in a bid to sue for defamation, after a court found the paper had correctly portrayed him as a rip-off merchant.

In two articles in 2003, it was reported that a property marketing company linked to Wollongong businessman Ron Cross was targeting investors from southern States, flying them to the Gold Coast and selling them overpriced properties.

After hearing six weeks of evidence (including testimony from property investors, valuers and developers) and reviewing 158 written exhibits, acting NSW Supreme Court Justice Cooper found Cross "was in fact ripping off mum and dad investors by selling them investment properties at exorbitant prices".

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Bully Banks Cost Battlers $Millions

by Peter Mericka B.A., LL.B Real Estate Lawyer and
Qualified Practising Conveyancer
Victoria
Lawyers Real Estate

For some time now a number of banks and non-bank lenders have been promoting themselves as "the battler's buddy", while illegally forcing their clients to pay for costly certificates. We believe that over the past decade these bully banks and their lawyers have fleeced their borrower clients of $Millions.

It's a clever scam, because it avoids the disclosure requirements of the Consumer Credit Code by forcing the borrower to incur costs personally.

Over the years we have battled the lenders and their lawyers who use it, but with limited success.

Even the Legal Services Commissioner has been baffled by it.

Let's look at how it works, and why it has endured for so long.

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Note: For further information about real estate or conveyancing issues visit Lawyers Conveyancing