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Fairness From NSW Office of Fair Trading? It's Problematic!

Peter Mericka B.A., LL.Bby Peter Mericka B.A., LL.B
Real Estate Lawyer
Qualified Practising Conveyancer Victoria
Director Lawyers Real Estate Pty Ltd

View Peter Mericka's profile on LinkedIn

 

After experiencing first hand the legal knowledge and reasoning of Mr. Robert Guthrie, Acting Manager, Licensing for the New South Wales Office of Fair Trading, I have written a comedy script for the ABC's 7.30 Report. The script is based on a letter penned by Mr. Guthrie concerning the operations of Lawyers Real Estate.New South Wales Office of Fair Trading Property Services Licensing

Lawyers Real Estate featured in a segment on Channel 7's Today Tonight program on Friday 25 June, 2010, and there has been an overwhelming response from lawyers who are interested in establishing Lawyers Real Estate franchises in New South Wales.

A couple of enquirers have asked about the reaction of the NSW Office of Fair Trading to the Lawyers Real Estate concept, having seen how Consumer Affairs Victoria was forced into a humiliating back-down. (Click on the link above to view the full Today Tonight segment).

Unfortunately, like his Victorian counterpart, Mr. Guthrie appears not to have sought legal advice and has clearly failed to properly inform himself as to the application of the laws of New South Wales to the Lawyers Real Estate concept. In a letter to the Director, Industry Training Consultants (a Sydney real estate agent training business), Mr. Guthrie demonstrated the way ignorance, combined with pride, can lead to absurdity. (To read a copy of the NSW OFT letter CLICK HERE)

The following script is how I would expect an interview with Mr. Guthrie would unfold.

 

BRIAN: Robert Guthrie thank you for your time tonight.

GUTHRIE: It's my pleasure Brian.

 

BRIAN: You wrote a letter to the Director of a real estate training institution in NSW last year, about Lawyers Real Estate, in which you stated that the concept of lawyers selling real estate is "problematic".

GUTHRIE: That's right Brian, and don't you love that word, "problematic" it's so descriptive isn't it.

 

BRIAN: Yes, we'll get to that word in moment, but first I just need to clarify a couple of points. Mr. Guthrie are you a lawyer?

GUTHRIE: Oh heck no Brian. A lawyer running a government licensing department that interprets and and enforces legislation? That would problematic.

 

BRIAN: And yet, you're providing the response of the New South Wales Office of Fair Trading to questions about the legality of a law firm that wants to sell real estate in your State.

GUTHRIE: Did you not see the disclaimer at the start of the letter Brian? It clearly says that the information in the letter is provided as a guide only and should not be relied on as legal advice. I did get legal advice on that bit Brian.

 

BRIAN: And what about the rest Mr. Guthrie, did you get legal advice on the rest of the contents of your letter?

GUTHRIE: I really can't answer that Brian.

 

BRIAN: Why not?

GUTHRIE: It would be problematic.

 

BRIAN: Yes, getting to that term "problematic"; you've said that if a lawyer is contacted by a person who is interested in buying a parcel of real estate from that lawyer's client, it could be problematic.

GUTHRIE: Yes, Brian, very problematic indeed.

 

BRIAN: But if a lawyer's client instructs the lawyer to direct calls received by the lawyer about the client's property to the client, how is that problematic?

GUTHRIE: As you know Brian, I am not a lawyer, but I can assure you that it is problematic.

 

BRIAN: Are you saying that the lawyer would have to tell the client to engage a licensed real estate agent to take the details of potential purchasers in order to pass them on to the client?

GUTHRIE: That's what I'm saying Brian, because then it would cease to be problematic.

 

BRIAN: But Mr. Guthrie, the client would have to pay the real estate agent $20,000 in commission just to have the telephone answered!

GUTHRIE: I don't make the laws Brian, I just enforce them, and provide the views of the Office of Fair Trading.

 

BRIAN: But that's hardly fair, is it?

GUTHRIE: The Office of Fair Trading is not interested in what's fair Brian.

 

BRIAN: You have also said that if a lawyer were to negotiate the sale on behalf of the vendor client, this would also be problematic.

GUTHRIE: Oh yes, that one's extremely problematic. In fact, it's probably the most problematic of all.

 

BRIAN: How so?

GUTHRIE: Do I have to remind you Brian, that I am NOT a lawyer. It would be problematic for me to answer that.

 

BRIAN: According to Mr. Peter Mericka, the lawyer who founded Lawyers Real Estate, lawyers always conduct negotiations in real estate sales. In fact, Mr. Mericka says that real estate negotiations entail the providing of pre-sale legal advice, taking instructions from the vendor client and advising on the legal implications of those instructions, putting the client's instructions to the purchaser through the purchaser's lawyer and coming to agreement, then reducing the agreed terms to writing in order to give them legal effect and to make them legally enforceable. According to Mr. Mericka, only a lawyer is qualified to do these things.

GUTHRIE: Well, he would say that wouldn't he, he's a lawyer.


BRIAN: Do you dispute what Mr. Mericka says?

GUTHRIE: How can I Brian, it would problematic.

 

BRIAN: You use that word a lot, don't you Mr. Guthrie.

GUTHRIE: It's a fine word Brian, I like to use it whenever I can.

 

BRIAN: Do you know what it means, do you know how it applies to the law and to the way Lawyers Real Estate sells real estate?

GUTHRIE: I don't have to Brian, I'm not a lawyer, remember.

 

BRIAN: Mr. Guthrie, I understand that Mr. Mericka has described the contents of your letter as "preposterous".

GUTHRIE: Wow, I like that word - and it's even longer that "problematic"!

 

BRIAN: You don't really understand the Property, Stock and Business Agents Act, do you Mr. Guthrie?

GUTHRIE: That's preposterous Brian.

 

BRIAN: You haven't taken legal advice on that Act and how it applies to the Lawyers Real Estate concept, have you?

GUTHRIE: That's preposterous Brian.

 

BRIAN: If I were to put it to you that you should brief learned counsel, a barrister who is qualified to offer legal advice on this matter, in order to obtain proper legal advice and to fully inform yourself and to provide accurate advice on the Lawyers Real Estate concept, would that be preposterous?

GUTHRIE: No Brian, that would definitely be...

 

BRIAN & GUTHRIE (IN UINSON): "Problematic!"

 

For those of you who don't think the above is funny, let me confess - I don't think it's funny either!

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