Estate Agents

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GUEST OBSERVER
One of the many advantages in using a buyer’s advocate is to capitalise on both their knowledge of the property market and their relationships with the sales agents.
As a result of such a relationship, I managed to obtain access to an off-market property in the Lower North Show and set up a private inspection with my client.
At the time I suspected the property would be beyond my client’s budget but my client still insisted on viewing the property.
It was a lovely family home in excellent condition and as it was of interest to my client, we completed an appraisal, concluding that the property would be very fair buying in the range of $3.79m to $3.84m.
After discussions with the agent, it was revealed that the vendor ideally wanted $3.9m but we suspected that there would be some room for negotiation.
At the time, I anticipated we would be able to secure the property for around $3.8m to $3.85m but unfortunately this was well beyond my client’s limit so we moved onto another property.
As it would turn out, the vendor’s motivation actually increased a month later once they had purchased and they decided to list the property on the open market.
A couple of weeks later we were contacted by another person who expressed interest in our service.
They initially wanted to purchase a home in Sydney’s Eastern Suburbs and so I arranged for a meeting with my colleague who specialises in the East.
We outlined our services and put forward our fee schedule. However, unfortunately after further discussions with this prospect they decided not to proceed, but rather to attempt to secure a home themselves.
This is not an unusual occurrence as I have to admit that it can be a little difficult for some people to see the value in our service prior to engaging us.  
As we usually do, we followed up a few more times over a two-week period before finally making contact. 
They told us they had decided not to purchase a home in the Eastern Suburbs, but changed track and preferred a house in the Lower North Shore and of course, you guessed it – it was the same one that I had seen prior to it coming to market.
But the sad part about this story is that this person ended up buying the property in question for an inflated price of $4.07m. 
I will always respect one’s decision to do it alone, using a buyer’s agent is not for everyone.
This was another example of a good selling agent doing their job well and taking advantage of an inexperienced and possibly emotional buyer.
I believe that even after the buyer would have paid our fees, I would have saved them around $200k.
However, this buyer was no Robinson Crusoe – sadly I’ve seen it many times before. Another win for a vendor – I only wish I could have been involved.
Rich Harvey is REBAA president and can be contacted <a href="https://www.rebaa.com.au/" target="_blank">here</a>.
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How to throw away $200,000: Rich Harvey

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A Sunshine Coast real estate agent has been fined $25,000 when banned for a decade after directing tenants' rent into her own account for six months.
Elizabeth Provan, director of Dicky Beach Real Estate, was found guilty of wrongfully converting trust money.
She was also found acting as an unlicensed property agent by Caloundra Magistrates Court.
<p data-reactid="384" data-gtm-vis-first-on-screen-6236702_632="1944" data-gtm-vis-total-visible-time-6236702_632="4000" data-gtm-vis-recent-on-screen-6236702_632="4804" data-gtm-vis-has-fired-6236702_632="1">The charges were brought by the Office of Fair Trading (OFT).
<p data-reactid="384" data-gtm-vis-first-on-screen-6236702_632="1944" data-gtm-vis-total-visible-time-6236702_632="4000" data-gtm-vis-recent-on-screen-6236702_632="4804" data-gtm-vis-has-fired-6236702_632="1">Its investigation was launched in August 2017 following consumer complaints.
The OFT claimed between January and July last year, Ms Provan converted more than $46,000 of rent money to personal use funds.
She told tenants to deposit their rent into her own personal bank account instead of the agency's trust.
The sentencing considered Ms Provan’s breach of trust, lack of remorse, and failure to cooperate with the OFT investigation. 
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Dicky Beach estate agent banned for a decade

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Real estate agents, lawyers and accountants won't face the toughest new anti-money laundering measures as the federal government has delayed its full crackdown on the professions.
Australia has been promising to introduce comprehensive "tranche 2" laws since 2006 – but the Department of Home Affairs confirmed it will instead seek "phase 1.5" laws as a transitional step.
The laws will clarify aspects of Australia's money laundering offences.
But anti-money laundering experts have warned that failing to crack down on illicit funds flows, including 'hot money' from China, has added significantly to Australia's housing affordability problem, Thomson Reuters head of financial crime intelligence Nathan Lynch said.
There was a <a href="https://www.afr.com/brand/chanticleer/oecd-warns-of-money-laundering-through-australian-real-estate-20171219-h07emq" target="_blank">highly critical report</a> from the international Financial Action Task Force (FATF) three years ago that warned Australia's real estate sector was at significant risk for money laundering.
"The government is currently preparing a bill to amend the Anti‑Money Laundering and Counter‑Terrorism Financing Act 2006 (AML/CTF Act)," a spokesperson from the Department of Home Affairs told Fairfax Media.
"Timing for introduction is subject to the parliamentary schedule."
The new legislation is expected to include changes to the "tipping-off" rules and other secrecy provisions to allow more sharing of information between the government and private sector, including with foreign partners.
The bill will also simplify reporting requirements for cross-border movements of cash or bearer negotiable instruments.
But the government confirmed the laws will not include the long-awaited coverage of lawyers, accountants and real estate agents.
The Australian Criminal Intelligence Commission (ACIC) estimates organised crime costs the Australian community $36 billion each year and "the most common professions exploited by organised crime include lawyers, accountants, financial and tax advisers, registered migration agents, stockbrokers, real estate agents and customs brokers", their report said.
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Anti-money laundering legislation delay a let-off for estate agents

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The global pandemic has dramatically changed the way real estate agents do business but the role they play in helping buyers to find the right property and representing sellers in navigating the sale of their home for the best possible price has never been more important.
For varying circumstances, there are still buyers in the market that need to buy and sellers that need to sell. These people are looking to real estate agents for their expertise, local knowledge and importantly, to help them in a time which commands working together towards a common goal.
Agents have been forced to be more agile, get creative, leverage technology and go the extra mile in building client relationships. Former marketing strategies no longer work and determining how and where they spend their clients’ money to advertise their properties is reshaping how agents do business.
Proptechs like ListingLoop.com.au have become a lifeline in supporting agents to maximise their time, grow relationships with their buyer database, save their sellers thousands of dollars and help them earn an additional recurring revenue stream.
ListingLoop.com.au, which recently announced a partnership with the Real Estate Institute of Victoria (REIV), and calls NBA and NBL basketball legend Andrew Bogut as an ambassador and investor, is Australia’s first buyer industry database. Agents can advertise their sellers’ properties for sale on ListingLoop.com.au under a no sale, no charge success-based advertising model where they pay for a result, not an advertising space. If there’s no buyer on ListingLoop.com.au, there’s no fee.
ListingLoop.com.au CEO Rhett Dallwitz said that “no sale no charge advertising provides an appealing, no risk solution during this current market. We understand that sellers don’t want to pay upfront advertising fees, while agents are not in a position to carry these fees on behalf of their sellers. Our model provides a safe digital solution that connects motivated buyers to the right properties faster than ever before”.
The ListingLoop.com.au platform saw a 23 per cent increase in buyer registrations last month demonstrating that there’s still serious buyers out there ready to take action. The company anticipates further buyer sign ups as people become more and more accustomed to our ‘new normal’ way of living.
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Buyers receive superior and timely service by registering their homebuying criteria and receiving an alert in real time the moment there’s a just listed or exclusively listed property that matches their needs. It’s a fresh and efficient take on the traditional model of property ‘searching’, especially now that not all properties listed for sale are on the major real estate websites due to the upfront advertising fees.
A property listing and property photos taken from a smartphone can be uploaded to ListingLoop.com.au in less than 30 seconds, including immediately after an agent has got the job and signed the listing authority. Registered matching buyers are notified instantaneously.
For sellers that need to sell but don’t want everyone knowing, all property information such as the address and the sale price are protected behind a login. The property is only seen by registered matching buyers on ListingLoop.com.au and is not visible in search engines such as Google and Bing, shutting out the window shoppers.
Unlike markets such as the US, real estate agents in Australia typically generate revenue through their sellers. ListingLoop.com.au is the first industry platform to financially reward agents for the work they put into helping buyers find their home. Up to 50 per cent of ListingLoop.com.au’s advertising revenue is paid back to an agent when a buyer purchases a property from within the ListingLoop.com.au network and from outside of their agency. If that buyer purchases property through ListingLoop.com.au multiple times in their lifetime, the agent receives a recurring revenue stream.
If a buyer purchases a property that’s the agent’s own listing, or if the listing falls under the agency that the agent belongs to, there is no fee. ListingLoop.com.au’s ‘community over competition’ approach to real estate has never been more relevant.
Agents are working more closely than ever with buyers as we collectively recognise the value of home and how much our homes matter. ListingLoop.com.au provides agents with free buyer intelligence tools that helps them instantly identify the buyers within their database that are actively looking for properties and those that could also be potential sellers.
“Despite a substantial drop in transactions, the role of a real estate agent has never been more important. Home is where we are eating, sleeping, playing, working and home schooling right now. An agent can tap into new tools and technologies to help buyers find the place that’s right for them, while supporting their sellers with targeted and cost-effective solutions that generate sales,” Mr Dallwitz said.
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Real estate industry needs agents to rise to the occasion: Listing Loop

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A former Varsity Lakes real estate agent has been fined $5,000 in the Southport Magistrates Court after charges were laid by the Office of Fair Trading (OFT).
Kylie Beecroft-Wilson, former sole director and principal licensee of Beecroft‑Wilson Real Estate Pty Ltd, pleaded guilty to operating as a real estate agent without a licence and making false representations that she held approval to supply real estate agency services for a period of time when she did not.
Mrs Beecroft-Wilson was fined $5,000. A conviction was not recorded.
The court heard that Mrs Beecroft-Wilson’s real estate agent’s licence, which she had held since February 2013, expired in December 2018 and that the licence of her company, Beecroft-Wilson Real Estate Pty Ltd, also expired in December 2018.
However, despite the expiration of these licences, Mrs Beecroft- Wilson continued to manage 11 properties for clients and operate a real estate trust account in her corporation’s name into which rent money was paid before being dispersed to owners.
Mrs Beecroft-Wilson also operated a business account into which she deposited rental commissions, management and letting fees, and she continued to advertise she represented a licensed real estate corporation on correspondence, receipts and new tenancy agreements, despite Beecroft-Wilson Real Estate Pty Ltd being deregistered by ASIC on 2 June 2019.
Mrs Beecroft-Wilson ceased trading in January 2020 when the OFT became aware that she was managing properties without a licence. The OFT appointed a receiver to manage and wind up the trust account.
In sentencing, Magistrate Mark Howden took into account Mrs Beecroft-Wilson’s early guilty plea, that there was no consumer detriment in relation to funds held in trust, and noted a fine would show that unlicensed conduct will not be accepted.
Fair Trading Executive Director Brian Bauer said Mrs Beecroft-Wilson’s continued operation of a real estate business despite the expiration of her licence and the winding up of her company presented dangers to both her and her clients.
“Large sums of money can change hands in property transactions so it is vital that agents are licensed to minimise the risk to consumers,” Mr Bauer said.
“The type of conduct demonstrated by Mrs Beecroft-Wilson risks undermining the confidence of consumers who have investments in the property industry.
“The OFT will take appropriate action against any individuals or agencies who are found to be not complying with fair trading laws.”
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No conviction recorded as former Varsity Lakes real estate agent fined $5,000 

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A Hope Island real estate agency, Hi Care Real Estate Group Pty Ltd, has been ordered to pay $1,044 in the Brisbane Magistrates Court on 17 July 2020 for failing to lodge an audit report on time with the Office of Fair Trading.
Under the Agents Financial Administration Act 2014, real estate agents have four months from the end of their audit period to lodge a report with the OFT.
The Hi Care Real Estate Group’s audit report was due in March 2019 but it was 79 days late in submitting it.
The court heard that the OFT issued Hi Care Real Estate Group Pty Ltd an infringement notice for the offence but the agency elected not to pay it and instead have the matter heard in court.
In sentencing, Magistrate Judith Daley said the licensee held public money and the trust account required stringent oversight to ensure defalcation did not occur, therefore audit reports were required to be submitted on time.
No conviction was recorded.
Fair Trading Executive Director Brian Bauer said this court action should act as a reminder to real estate agents about their legislative obligations when it came to operating a trust account.
“Reports of agents who fail to follow their trust account obligations are taken very seriously by the OFT,” Mr Bauer said.
“Audit measures are in place to ensure the integrity and accountability of the industry.
“Agents are able to get assistance from legal or financial professionals, or even the OFT if they have questions regarding the operation of their trust accounts.”
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No conviction recorded after Hi Care Real Estate fails to meet audit requirements

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Gold Coast estate agent Nick Slater has been confirmed as the victim of Tuesday's shark attack off Greenmount Beach.
Slater worked at London Estate Agents Mermaid Beach, ran by principal Ron London.
He had been there since last November, having previously worked as a sales manager in Ray White's Projects Gold Coast division.
He spent the vast majority of his career at McGrath in Canberra. He was an agent and business development manager for nearly a decade.
Slater had secured two sales this year, both in Mermaid Beach, two villas. He secured $1.42 million for four bed home and $741,000 for a three bedder.
“While I’m focused on getting the best possible sales result, I want the journey to be as a pleasant as possible," Nick said about his approach.
“I feel privileged to be entrusted with client’s business, and I like to repay that trust by delivering a superior service experience.”
 
 
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Local estate agent Nick Slater confirmed as Gold Coast shark attack victim

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The director of a former estate agency in Melbourne’s Boronia has been declared ineligible to hold an estate agent’s licence, or be an estate agent’s representative for five years, after he admitted to knowingly authorising and permitting the agency to convert trust money to its own use.
Michael Knight, 49, was found guilty by the Victorian Civil and Administrative Tribunal of breaching the Estate Agents (Professional Conduct) Regulations 2008 on several counts, such as not acting with care and diligence in his role as an estate agent.
His company, Michael Knight Real Estate Pty Ltd, was also found to have violated the Estate Agents Act 1980 by:
depositing trust money directly into the agency’s business account for its own use thrice
causing a deficiency in the trust account by withdrawing trust money prior to property settlement a further three times
not completing a number of monthly trust account reconciliations, or completing them incorrectly
failing to have the agency’s trust account audited for the 2013-2014 financial year.
The tribunal reprimanded Knight and declared him ineligible to hold a real estate agent’s licence, or to be an agent’s representative for five years.
Knight also gave an undertaking to the tribunal that he would never apply for, or seek to hold another estate agent’s licence. He must also inform any estate agent that employs him in future about the ruling against him.
Michael Knight Real Estate Pty Ltd was also reprimanded and declared ineligible to hold a real estate agent’s licence for five years.
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Victoria court rules against Boronia estate agent 

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Australian real estate agents prefer not to dazzle vendors with the latest and greatest technology and instead rely on paper as the primary information communication tool.
According to a recent report conducted by CoreLogic RP Data "<a href="/expert-insights/43133-some-differences-between-the-sexes-corelogic-rp-data-estate-agent-satisfaction-survey-results" target="_blank">The 2015 Consumer Perceptions of Real Estate Agents</a>", the average agent is slow to embrace technology even when it can help demonstrate their own personal market knowledge.
The report found only 17% used an iPad or video to share market information, and 12% received market information in an email.  
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Paper rules in the age of tech: CoreLogic RP Data

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McGrath Estate Agents has opened a new franchise office in the inner city Brisbane suburb of Wilston, the seventh in the city.
Scott Osborne and Craig Lea will be co principals. They previously ran the independent agency, Style Estate Agents Wilston.
According to Mr Lea, Wilston offers buyers a mixture of property types, from Queenslanders and pre-war cottages to contemporary homes, townhouses and apartments, with workers cottages and Queenslanders are particularly popular in the $750,000 to $1,000,000 price range.
McGrath Chief Executive John McGrath said Brisbane represents outstanding value in today’s property market and I believe will see some excellent capital growth going forward. 
“Inner Brisbane, close to the CBD, represents a lifestyle element that people find very attractive whether you are an owner-occupier or an investor who is focusing on renter appeal,” he said.
The Wilston branch will service the local area from Wavell Heights in the north, to Windsor in the south, to Wooloowin in the east, and Alderley in the west.
The median price for a home in<a href="https://www.urban.com.au/property-observer" target="_blank"> Wilston is $840,000</a>, according to CoreLogic RP Data.
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