Estate agent behind bars

[ger]

http://www.news.com.au/heraldsun/story/0,21985,24180736-661,00.html


A REAL estate agent is in custody after being found guilty of deceptively buying an old man's house for half its market value.

A jury today found John Michael Talia, 53, guilty of one count of obtaining property by deception.

He was remanded in custody to reappear in the County Court tomorrow.

Talia, of Doncaster East, was sales manager at Ray White Doncaster at the time of the offence and had about 20 years' experience.

Talia bought the Burwood East home in July 2002 for $150,000. But an independent valuation estimated the Lindisfarne Drive house at $300,000.

The house's owner, Antonino Carbone, went into a nursing home in 2001.

The woman given Mr Carbone's power of attorney, Stella Garretto, spoke to Ray White real estate in Doncaster about selling the house.

Sue Talia, who was in charge of rentals at the Ray White office, suggested her husband might be interested in buying it.

Prosecutor Tim Doherty said Talia asked an agent at another real estate agency for a property appraisal, which valued the property at $135,000 to $155,000.

The appraisal was sent to Ms Garretto.

Mr Doherty said Ms Garretto was deceived into selling the property for $150,000 as a result of the false market appraisal.

When Mr Carbone died in June 2003, his solicitor and executor became concerned about the sale and got an independent valuation, Mr Doherty said.

Defence barrister Greg Lyon, SC, argued Talia got a bargain when he bought the house but was not guilty of obtaining property by deception.

He told the jurors they could not find him guilty just because they thought it was unfair or because he was a real estate agent.

"It is not against the law to offer $150,000 to buy a property worth $300,000,'' Dr Lyon said.

 

[NedKelly]

He told the jurors they could not...e real estate agents held in such low regard?

 

[ianvestor]

Talia bought the Burwood East home in July 2002 for $150,000. But an independent valuation estimated the Lindisfarne Drive house at $300,000.

When Mr Carbone died in June 2003, his solicitor and executor became concerned about the sale and got an independent valuation, Mr Doherty said.

It doesn't really count if the valuation was done almost a year after the supposed deception.

 

[weg]

I would have thought the courts would just need to ask the Q, 'Was the RE acting in the best interest of the vendor?'.

Was the house advertised? If not, then no attempt was made to get the best possible price.

The valuation may not be accurate, however under normal, or more typical, RE sale conditions, they could have achieved that price.

Isn't this type of practice not covered by any RE regulation/laws?

 

[Ausprop]

Isn't this type of practice not covered by any RE regulation/laws?

yes. It's seriosuly not worth an agent buying their own listings. The restrictions on agents trading is one reason I didn't go for my full ticket.

 

[BayView]

I would have thought the courts would just need to ask the Q, 'Was the RE acting in the best interest of the vendor?'.

Was the house advertised? If not, then no attempt was made to get the best possible price.

The valuation may not be accurate, however under normal, or more typical, RE sale conditions, they could have achieved that price.

Isn't this type of practice not covered by any RE regulation/laws?

I think from memory that in Vic the r/e agent has to declare to the Vendor if they have an interest in the purchase of the property.

This means, the r/e agent, or any of his/her relatives, can't buy the house for themselves without telling the Vendor who is actually buying it.

It sounds as though this agent tried it (not advising the Vendor of his interest), and got caught.

 

[geoffw]

I've seen a lot of REAs behind bars.

If they're not very good at selling, they need that second job pulling beers.

 

[Xenia]

what if a private investor (no real estate license) approached an elderly person and purchased a property at a discount? Would this also be an offence?

what if you have a real estate license (like me) and use it for property management only but don't sell houses. I am also an investor and feel restricted to make offers on private properties because I have a license!

 

[willair]

.

Talia bought the Burwood East home in July 2002 for $150,000. But an independent valuation estimated the Lindisfarne Drive house at $300,000.

The house's owner, Antonino Carbone, went into a nursing home in 2001.

.

Defence barrister Greg Lyon, SC, argued Talia got a bargain when he bought the house but was not guilty of obtaining property by deception.

He told the jurors they could not find him guilty just because they thought it was unfair or because he was a real estate agent.

What else could he say,he has to earn his 5k a day somehow win or lose he's not the one that will spend time in the slammer,deception Anything which persuades a person to believe in something which is flase,or obtaining financial advantage by deception, i hope as the jail door slams on the person as it will,as his new room mates find out what he has done to an old lady he understand how Karma works..willair..

 

[crc_error]

what if a private investor (no real estate license) approached an elderly person and purchased a property at a discount? Would this also be an offence?

what if you have a real estate license (like me) and use it for property management only but don't sell houses. I am also an investor and feel restricted to make offers on private properties because I have a license!

if the person said they wanted to get a independant valuation, and you said you know this good valuer who works at a bank, and send them to him, but behind the scenes you tell the valuer, which is your mate, to make a false valuation, I think this would be counted as deception, and you should be locked up.

and if your business model is to approach the elderly in the community and offer silly prices hoping to rip one of them off, then you have no ethics in investing and as a person.

 

[wylie]

I posted about six or eight months ago about my ex-neighbour who had a "lovely young man" knock at her door and offer her $550K to $600K for her house. He was an agent, but not a local one. He was a commercial agent, but lived a few streets away, so knew what sort of bargain he would be getting.

Anyway, I was disgusted and posted it. Plenty agreed with me but I was amazed at how many thought lowballing an 88 year old blind, deaf lady was acceptable. Some said she just had to get an independent valuation . That may be do-able if you are not distressed about having to leave your home, are not blind or deaf, or have family in the same city, or think that "lovely young man" was so nice, he wouldn't rip me off, would he??

Luckily, she had me to advise her and her step-daughter to take over the process. House sold for just over $800K.

I also know that when my mum was selling houses, we tried to buy one that was listed through her office. We had to fill out extra forms, advising of our relationship to her, her relationship to the office etc.