Closure of 6 LJ Hooker offices

We were involved in a trust fund fraud case about 12 years ago on the Sunshine Coast, ironically also a LJ Hooker agency!

Owner was taking bonds and rent in cash and pocketing it. Fortunately for us our tenant had handwritten receipts for bond and rent payments so we worked together to lodge a claim on the state fidelity fund and eventually got our money back.

The owner went to jail over the issue.

Saw the current case on TV last night. Seems the agents involved bought property so should be some recovery.
Marg

 

In NSW - PROPERTY, STOCK AND BUSINESS AGENTS ACT 2002 - SECT 3 Definitions

86 Trust money to be paid into trust account
Money received for or on behalf of any person by a licensee in connection with the licensee’s business as a licensee:
(a) is to be held by the licensee or (if the licensee is employed by a corporation) by the corporation, exclusively for that person, and
(b) is to be paid to the person or disbursed as the person directs, and
(c) until so paid or disbursed is to be paid into and retained in a trust account (whether general or separate) at an authorised deposit-taking institution in New South Wales and approved by the Director-General for the purposes of this Part.

all real estate agents would know this by heart, trust money is not their money!

 

Agreed - same law in VIC as well in relation to trust accounts + you're not allowed to earn interest on the trust account funds.

 

This is fundamental trust law.

 

@Terry_w what were you doing at town hall station? I didn't want to interrupt your conversation.

Oh yes solicitors have been struck off the roll when they mucked around with trust accounts.

 

Lol, I was just seeing of a client! I don't normally walk clients to the station, but we were both heading in the same direction so continued our conversation.

 

LJ Hooker closure: Judy Thanh Truc's two neighbouring houses for sale

hmmm I wonder if the sale was voluntary or not??

if it was, it seems like they are trying to do the right thing?
or did they get away with $10m, and now selling $2m to get away with the $8m

 

One of the core subjects for the LLB course, Professional Responsibility and Legal Ethics talked to death about this. Maybe the fellow skipped those classes?

 

You'll be surprised how quickly lawyers forget. I did an LLB myself.

 

Are you practising now?

 

The hardest subject to pass in the practical legal training course was 'trust accounts' (this is separate to trust law, but an accounting type subject). It is very easy to make a mistake and very complicated - that is why I don't run a trust account.

 

This story is disturbing enough, and I feel deeply sorry for all the buyers and vendors out of pocket due to the theft and trust accounts by these two leeches of agents down in Melbourne. However, what was also disturbing on this ACA story last night was the inclusion of so-called "expert" opinion by ex-Block judge Frank Valentic putting his two cents worth in!!

Frank himself has recently copped a fine ($7000) and a suspension of his real estate licence (for 6 mths commencing April 1 2016) by Victoria's VCAT for acting dishonestly, backdating documents to avoid stamp duties and being involved in conflicts of interest between sellers and buyers. ACA do your research and make sure you obtain expert opinions from honest agents at least! There are plenty of ethical professional and honest agents who could have been included in this story, but Frank Valentic is certainly not one of them.
LJ Hooker Sale

 

it seems inthe 21st century, credibility has gone completely out the window.

and it seems more prevalent in certain industries

 

There's only about 3 industries that use trust accounts, so that's a given i guess.

I think those people would be dodgy regardless of which job they were in. They'll go work somewhere else and won't be much different.

 

Yes. If person is short on integrity, it wouldn't matter where that person works.

 

I'm glad I did it very well but really we use trust accounting software. No excuses for mistakes.

 

So do we

 

This must be a little awkward for Frank.

Sounds like he could miss out on being a judge in a future version of the Block, where Keithie and Scott get manage the conversion of an ex-housing commission high rise with harbour views in Millers Point into a neo-gentrified boutique monolith with 24 hour valet parking...

 

So do Ch 9 care about this or not? Be interested to know if they have their researchers onto this...

 

No - figured out investment banking, corporate strategy and real estate was more exciting and paid better