Real estate agent denies wrongdoing

Published: 6:40PM Monday August 20, 2007 Source: ONE News

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There are calls for the real estate industry to take complaints more seriously after concerns have been raised about an Ashburton real estate agent.

Former clients say the agent has been acting unprofessionally and they are unhappy with how the company she worked for has handled the matter.

They claim the agent did not make it clear to them that she was in fact the buyer of their properties but for her part the agent says she has done nothing wrong and has all the correct documentation for the sales.

When Rob and Sue Leonard put their house on the market they say the real estate agent told them she had an overseas buyer.

"She portrayed them to us to be her family friends," Rob says. "As it went along it turned out to to be her family... but nothing to do with her at all."

After the sale was finalised the family discovered the agent was the buyer and although she got them to sign the relevant documents, they claim it was never properly explained.

"She also produced this piece of paper to us saying it was a formality thing... at the time, I didn't even read through it... I went oh yeah that's fine," Rob says.

Agent Julie McDonald says her recollection of the facts is "quite different". She says the Leonards were fully aware who had bought the property and she is adamant everything was done with their full consent.

But ONE News has discovered the Leonards were not alone. A second mix up seems to have occurred when she was selling a house for another couple. Their lawyer says they had no idea she was the buyer until a day or so before settlement. They weren't happy, but were committed to another property so the deal went through.

ONE News has uncovered at least 12 houses McDonald has bought since 2005 in either her name or her company name. Eight were properties she was selling.

An agent can buy as many houses as they want, but strict procedures have to be followed. 

Murray Cleland from the Real Estate Institute says they were concerned earlier this year about how many properties McDonald was buying and organised an independent audit.

"They were totally satisfied that there was nothing wrong in the office, that the paperwork was complete," Cleland says.

The institute says there was nothing more it could do but it stresses that agents must explain transactions clearly.

"Time and time again that's where things fall down because there's a lack of communication," Cleland says.

Tricia Phillips has also had dealings with McDonald. She describes selling her house as a nightmare with disagreements and promises of cash buyers. She says when her house finally sold there was a bitter dispute over the fee.

"I was shocked and angry and really, really upset," says Phillips.

Once again the real estate agent denies doing anything wrong and she is taking the matter to the disputes tribunal.

Until recently McDonald had the L.J. Hooker franchise and both people ONE News interviewed say they complained to the company.

L.J. Hooker says they have no record of Rob Leonard's complaint and couldn't comment on Phillips' because the institute is now investigating it.

The Real Estate Institute says people should put complaints in writing and it is urging real estate companies to deal with complaints immediately.

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