Issue Date:  -  Friday, 1 September 2000

Homestart Realty charged over Real Estate deals

The Ministry of Fair Trading has charged a West Perth real estate agency and four of its sales representatives with making false or misleading representations under the Fair Trading Act.

Fair Trading will allege that in five transactions Homestart Realty’s sales representatives told first home buyers or sellers – and in some cases both – that in order to receive low deposit finance the property would have to be sold through the agency.

The Ministry believes most transactions proceeded to settlement, with Homestart Realty receiving a commission.

Commissioner for Fair Trading Patrick Walker said the Ministry would allege Homestart Realty and the salesman misled parties into believing that sellers needed to sell through the agency in order for the purchasers to obtain low deposit finance.

There are fourteen charges against Caprice Bay Pty Ltd trading as Homestart Realty, four each against Phillip Arrigo, Kevin Budd-Doyle and Brian Dale, and two against David Blackmore.

Mr Walker said that in order to get low deposit finance through a "Keystart" loan from one of four government approved lenders, first-homebuyers are not required to apply for finance through a real estate agent. Low deposit finance can be approved directly through any of:

University Building Society;
Trades and Labor Council Building Society;
Western Homebuyers Building Society; or
Westland Building Society.

The maximum penalties under the Fair Trading Act for corporations are $100,000 for each offence, and $20,000 for individuals.

The matter is set down for first mention Friday, September 1 in the Perth Court of Petty Sessions.

Media inquiries:

Stephanie Slanzi
Tel: (08) 9282 0956
Mobile: 0407 088 963