Property Agents

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Homebuyers and novice investors are being blindsided by spruikers masquerading as qualified property investment professionals, according to two peak industry bodies. 
The Property Investment Professionals of Australia (PIPA) and the Property Investors Council of Australia (PICA) have joined forces to warn consumers that unscrupulous operators could cost them their life savings. 
PIPA chairman Peter Koulizos said with property markets rebounding, fly-by-night spruikers were once more coming out of the woodwork with the aim of snaring the unwary. 
“PIPA has heard of buyers being offered ‘cash back’ deals of tens of thousands of dollars to encourage them to buy inferior properties,” Koulizos said. 
“Of course, the ‘cash’ isn’t real because it’s built into the sales price so, in essence, buyers are paying for their own supposed windfalls.”
PICA chairman Ben Kingsley said property investment charlatans often made their money by accepting huge commissions to promote substandard property investment stock to investors. 
“These fake advisers will also never disclose how they make their money if a consumer should ever ask, which should be a big red flag to anyone enticed by their slick marketing campaigns,” Kingsley said. 
“It’s quite common for developers to offer commissions of $50,000 or more as well as gold Rolexes for help to offload subpar stock.” 
Kingsley said while commissions were a common part of the property investment sector, a qualified adviser would also undertake significant research before recommending a property to clients. 
“Unfortunately, huge commissions are the sole motivation for faux advisers,” Kingsley said. 
“They are only thinking about their own bank balances and not the long-term financial consequences on consumers of their under-handed actions.” 
Koulizos said the lack of regulation in the provision of property investment advice meant that consumers often couldn’t recognise a con-artist from a professional.
As well as being members of PIPA, Koulizos said consumers should look for experts who have completed specialist education in property investment advice or are licenced buyer’s agents. 
“Because of the paucity of legislation, PIPA developed the Qualified Property Investment Adviser (QPIA) course to address the need for professionals in the industry to be appropriately qualified to give advice,” he said. 
“Consumers should only work with licensed buyer’s agents and advisers that have completed a QPIA, who are also members of PIPA, because of our strict code of conduct that includes full disclosure of commissions.”
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Industry bodies warn against charlatan property agents

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Michael Simmons, a former Gold Coast resident letting agent has been banned from the real estate industry for 10 years following an Office of Fair Trading (OFT) investigation.
Simmons was a licensed residential letting agent, collecting rent and holiday income for apartments in Burleigh Heads. 
Michael Joseph Simmons was taken to the Queensland Civil and Administrative Tribunal (QCAT) by the OFT for misappropriating trust money.
He was fined $3,000 after the tribunal heard the investigation began when the OFT was notified Simmons’ trust account was overdrawn.
Shortly after, Mr Simmons abandoned his business and the OFT appointed a receiver over the business’s trust property.
The OFT established Mr Simmons withdrew trust account money he was not entitled to on 29 occasions.
The trust account became overdrawn on four occasions between May and October 2012.
In sentencing, the tribunal considered Mr Simmons lack of remorse, disregard for his obligations as a licensee, and his four previous opportunities to make an early guilty plea.
Fair Trading Executive Director Brian Bauer said behaviour such as Mr Simmons’s would not be tolerated in the real estate industry.
“Stealing from a trust account is an inexcusable act and represents a gross breach of the confidence placed in an agent” Mr Bauer said.
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Burleigh Heads, Gold Coast letting agent banned for 10 years

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Development of the real estate and property division within the New South Wales Department of Fair Trading will help increase industry standards, according to the Real Estate Institute of NSW.
REINSW President Malcolm Gunning said issues plaguing the industry such as underquoting, entry levels to the industry, ongoing training and property spruikers need practical solutions.
“We are impressed by the level of cooperation from Estate Agents Co-Operative Ltd (EAC) and Australian Livestock &amp; Property Agents Association (ALPA) as well as the Minister’s Office and Andrew Gavrielatos, Fair Trading Assistant Commissioner, who is the head of the new division," he said.
“Mr Gavrielatos will also hold the responsibility of the establishment of a Real Estate Qualifications Review Committee."
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