Kerry McEachern

Details

The State Administrative Tribunal agreed for a proper cause for disciplinary action against We Rent Property Management Pty Ltd, Kerry McEachern, Betty Garlett and Giovanna Noblett. 

Between 2003 and 2005 We Rent Property Management Pty Ltd was properly appointed as agent for five vendors in the sale of their respective properties.  The properties were purchased by either employees of We Rent Property Management Pty Ltd or Noblett (the licensee and person in bona fide control of We Rent Property Management Pty Ltd). Each sale was negotiated by a sales representative employed by Noblett.

On each occasion the principals of We Rent Property Management Pty Ltd were not given adequate and timely disclosure that Garlett, McEachern and Noblett had an interest in the transaction other than as an agent or as a sales representative employed by We Rent Property Management Pty Ltd and as a consequence, commission due under the respective selling agency agreement could only be demanded or received by the said persons if the principal was so aware and had given prior written consent to pay the commission.

In respect of a property sold in June 2003 where an employee of We Rent Property Management Pty Ltd purchased the property, the notification provided to the vendor by way of a special condition on the contract of sale stated that the vendor was aware that the purchaser was a licensed real estate agent but was still happy to pay the commission.

In respect of a property sold in June 2003 where Garlett was the sales representative and the purchaser was a sales representative employed by We Rent Property Management Pty Ltd, an outdated REIWA "Disclosure of Interest and Consent in Real Estate or Business Transactions" was used and presented to the principal albeit prior to the contract of sale being negotiated.  

In respect of a property sold in February 2004 to a sales representative employed by We Rent Property Management Pty Ltd the outdated REIWA Disclosure Form was given to the vendor with the contract of sale but it was not entered into by the vendor. 

In respect of a property sold in September 2002 where McEachern was the sales representative and Noblett was the purchaser, the Outdated REIWA Disclosure Form was used.  It was signed and dated by Noblett and the vendors on the same day the vendors accepted a contract for the sale of the property.

In respect of a property sold in May 2005 where Garlett was the sales representative and Noblett was the purchaser the Outdated REIWA Disclosure Form was used and entered into the same day as the parties entered into the contract of sale. 

The Outdated REIWA Disclosure Form was a pre printed form which amongst other things provided for the agent to disclose to the vendor a purchaser's relationship with the agent and obtain consent from the vendor to the payment of the selling fee due under a selling agency agreement. 

The Outdated REIWA Disclosure Form did not inform the vendor that they were not obliged to pay the selling fee as a result of the disclosable interest.

We Rent Property Management Pty Ltd was ordered to pay $500 in fines, McEachern $500, Garlett $500 and Noblett $1,500. They were also ordered to pay $500 in costs.