Beware Who Warns You Of DIY Dangers

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

My blood pressure went through the roof again a while back. Needless to say, I had spotted another disturbing article in The Courier Mail’s weekend real estate supplement, this time purportedly warning consumers about the “dangers of buying and selling real estate”. The title really summed it up: “DIY real estate can be risky business”. Oh boy!

Interestingly, there was a headshot and name of the author, Ross Thompson, but made no mention of who he was or of his qualifications.

The Courier Mail’s website, by the way, seems to have no record of Mr Thompson among its editors and reporters. His article appeared on a page captioned “MarketMovements”, but with no hint that it was anything other than a genuine piece of serous reporting.

The truth came out when I accessed New Corporation’s Newstext website to download the article. It was tagged this way at the end:

“Column: Market Movements Section: REAL ESTATE Type: Advertisement”

Yes, this report was actually a cunningly disguised (and paid?) advertisement. For whom it was run should become pretty clear as you read on.

More recently, by the way, I have noticed the Mr Thompson tellingly gives his email address as: advertorial@qnp.newsltd.com.au.

Below are a number of quotes from this crock of you-know-what, followed in each case by my pithy and occasionally caustic comments:

“Long-standing warnings about the dangers of buying and selling real estate privately have been reinforced by the Real Estate Institute of Queensland…”

(These so-called long-standing warnings have only ever been made by the REIQ, no doubt because its real estate agent members miss out on commissions when private sales are made.)

“The biggest risk, according to the REIQ, faces buyers who deal directly with the vendor because if anything goes wrong, the only recourse they have may be costly legal action.”

(In my experience - over more than 30 years – buyers are more at risk of things going wrong when real estate agents are involved.)

”REIQ Research Manager, Fiona Bergin, said sellers were often not aware of what was involved in the whole transaction process and instead of making a bigger profit, could stand to lose a great deal by going it alone.”

(Pull the other one, Fiona!)

“At face value, the expectation of possibly saving a very small percentage of the market value of a property is attractive,’ Ms Bergin said.”

(Funny how agents’ commissions are always spoken of in percentage terms…and small ones at that.)

“Once they (vendors) realise some of the complexities, the time involved in selling real estate and the potential pitfalls, few would be willing to take the risk of selling what is probably their most valuable asset themselves. A variety of things can go wrong…”

(What, pray tell, are these “pitfalls” and what are the “variety of things”, dear heart, that can go wrong?)”

“…the security of knowing that the transaction is in the hands of a professional agent who must conduct their business according to government regulations is cheap insurance,’ she said.”

(What about the cheaper insurance and the better security of knowing that you have first sought sound independent legal advice and representation from a qualified -and professional - conveyancing solicitor?)

“Under current Queensland law, buyers or sellers who deal with a licensed agent have the protection of being able to take any complaints to the Property Agents and Motor Dealers tribunal. The facility of seeking redress from the PAMD fund is only available if the transaction has been handled by a licensed real estate agent. The fund has a pool of money administered by the Office of Fair Trading to provide financial compensation to consumers who have been deal with unfairly.”

(Don’t hold your breath.)

“If the complaint is the result of a private sale, consumers can only take action through a court.”

(In either situation - private or agent-engineered sale - complaints will be few and far between if vendors and buyers alike don’t sign anything without first obtaining sound independent legal advice.)

“Ms Bergin recommended that vendors and buyers should look for an REIQ accredited agency which is accountable to a special tribunal set up to hear consumer complaints. The tribunal also has the power to ensure that all accredited agencies are operating in accordance with the standards of business practice.”

(Oh boy, don’t hold your breath here either.)

“Ms Bergin said consumers could have confidence that an REIQ accredited agency would have detailed knowledge of all relevant laws and regulations involved in real estate transactions.”

(Wonder why the Office of Fair Trading warns real estate consumers that agents are “not qualified to give legal advice”.)

“She said not all agents were accredited…”

(No matter that all agents – REIQ and otherwise – are obliged by law to comply with Fair Trading’s Code of Conduct.)

“The complete list of accredited agencies is available at www.reiq.com.au.”

(Well, of course you’re not going to run a fear-mongering advert for the benefit of your members without saying how to locate them.)

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