They then filed a counter-claim against The Eleet,claiming the agency had breached the Estate Agents Act by not informing the elderly parents that the commission was subject to negotiation before obtaining their signatures.
The family argued The Eleet’s conduct induced them into signing the authority,and alleged that the agency had breached Australian consumer law by telling them that there was no risk because the family would have the final say about any offers.
They also claimed there was no suggestion the family would be liable to pay commission if they did not accept an offer.
Gupta said the agents had done what they were hired for in obtaining a signed binding offer,and deserved the commission after spending several months in discussions with the family.
The case also settled before it went to trial and Gupta said the agency was happy with the court settlement outcome. The vendors declined to comment.
‘It’s taken a heavy toll on the family. I’m completely worn out.’
Traralgon resident Doug Schoer
In another case,in 2018,similar to the Schoer family’s,a director of a family business had signed a heads of agreement document presented to him by one of The Eleet’s agents who had approached the man spontaneously at his property.
The man said he was told the document would not constitute a binding sale but would authorise the agent to procure offers from prospective purchasers,and be used as a negotiating tool.
The agent then lined up a buyer,who took the family business to court,arguing they had to go through with the deal.
A judge found that the business dealings around the property were “loose and questionable”,and described the “spontaneous and unbusinesslike way this laconic dealing started at the site”. He described the heads of agreement as a “strange document” which he did not believe could be made out to be a binding contract.
The judge also said the position of the agent and The Eleet in the deal was fraught,as they appeared to be acting in conflict to both solicit a sale for their client,the buyer,but also act as the exclusive agent for the vendor “with the prospect of a substantial commission”.
Gupta said the agency reprimanded and took action against the agent in this case and reported him to Consumer Affairs. He no longer works for the company.
Melrossa Road is dotted with acreages and hobby farms on Traralgon’s eastern edge. Many residents have lived there for decades.
A zoning change has made the otherwise unremarkable area highly attractive to developers. The change brought a wave of real estate agents,who at sporadic periods have repeatedly doorknocked residents along the street,hoping to cash in on the residential potential.
The Sunday Age spoke to a number of owners in the area who have dealt with The Eleet.
Margaret LaFrenz,81,has lived at her sprawling property for 42 years and was introduced to an agent from The Eleet by Ashley Schoer,before his dealings with the agency went sour.
“[The agent] would go on and on,” said LaFrenz. “The barrage of language in trying to talk me into something. I kept saying,‘I don’t know if I want to sell at the moment’.”
The second time,the agent came with wine and chocolates. LaFrenz didn’t invite him inside. She signed a sales authority,but refused to sign a heads of agreement.
“I was feeling most anxious about the pressure. We stayed outside on my front verandah. He then got a printer out of the car,sat on the seat and printed a few pages,” she said.
“It was constant,he hardly paused for breath ... It was exhausting.”
Saahil Gupta,The Eleet founder and managing director,denied any pressure was put on LaFrenz,and said the agency only made contact because of the referral from Ashley Schoer.
Doug Schoer built the home he has lived in for 34 years. He felt that he didn’t have time to get legal advice before he signed the papers presented to him by the real estate agent.
He has had two heart attacks in recent years,and said the ensuing ordeal in the courts and the fact that caveats have been placed on his property have greatly worsened his health at a time when he should be winding down and spending his remaining years with family.
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“It’s taken a heavy toll on the family. I’m completely worn out,” he said.
The Schoers say they were under the assumption the buyer of their properties was a large developer called Growland,a large Melbourne-based developer that has 2000 apartments under development.
However,the buyer listed on the heads of agreement was Grow Lands Pty Ltd. Filings from the corporate regulator show Grow Lands was incorporated in October 2021 and has a sole director and secretary,Ramandeep Bansal. Title records show the company owns no properties in Victoria and doesn’t appear to have a website listing any development projects.
The Schoers say they didn’t realise for several weeks that it was a different company to what they had originally thought.
Gupta said his agent was always upfront about the buyer and never misled the Schoers in any way,with all documents sent to the Schoers containing the correct name and company number listed. He said the agent was not aware of Growland,and the family never asked about the discrepancy in the company names,even after the documents were signed and sent back to them.
Gupta toldThe Sunday Age his agency has dealt extensively with Grow Lands,and claimed the company had made a number of property purchases and was an “established developer in Melbourne”.
Bansal did not return requests for comment,including attempts to contact him through his lawyer.
Grow Lands initiated action against the Schoer family in the County Court of Victoria in June,arguing that the family breached the heads of agreements and must produce a formal contract of sale and go through with the deal.
The Schoer family are defending the action,and argue in court documents that they were not given the opportunity to take legal advice before signing the heads of agreements,and only signed them as they were told they were not binding.
Adding to the family’s distress,The Eleet continues to list several of the Schoers’ properties online for sale,despite the ongoing dispute and court action.
Several of the listings,which remain online,pitch them as an “amazing development opportunity” with flexible terms and conditions.
The Schoers believe this indicates the land is being flipped to investors,a term used by developers,agents and speculators to describe a process where properties are bought and sold for a profit rather than developed.
Gupta denies this. He said the properties were listed because there was no directive from a legal representative to remove them from listings,and his agency was hired to sell the properties.
Gupta denies his agent did anything wrong during their dealings with the Schoers,and the contact with Doug Schoer was extremely limited. He said the agent spent hours with the family,explaining the heads of agreement documents,and changing parts of them to ensure each family member was comfortable and understood all the details.
Gupta said the Schoers got a “fantastic price” for their properties,well above comparable recent sales,and his agency “performed extraordinarily under adversities where interest rates were increasing more than global warming”.
“So rather than getting appreciation,[they] are complaining,” he said.
Gupta said most people “would accept that at this price these properties would never be resold/on sold”.
“I say that I will pay the commission of the agent who has the guts to find a buyer to buy at higher prices than these.”
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The Schoer family have made complaints about The Eleet with Consumer Affairs Victoria and written to Consumer Affairs Minister Danny Pearson,relaying their concerns about The Eleet. But they say it’s taken months to get a response.
In June,Pearson wrote in a letter to Ashley Schoer that Consumer Affairs took the complaints seriously and was assessing the “concerning allegations” for possible further action.
A government spokesman confirmed Consumer Affairs was investigating. He said the government took real estate agent misconduct seriously.
The Real Estate Institute of Victoria is also aware of allegations made against The Eleet,and a spokesperson said the institute was supporting Consumer Affairs Victoria with its investigations.
“The REIV has very clear rules and expectations regarding membership eligibility and conduct. If an agency or agent is found guilty of the charges,we will move swiftly to take appropriate action on membership.”
The institute said it encourages vendors to seek legal advice before signing any documentation.
Know more? Contact the journalist securely at sfoxkoob@protonmail.com
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