A Pilbara-focused real estate agency in Victoria Park has had a supervisor appointed to its financial operations and will be wound up under orders from the Department of Consumer Protection.
The consumer watchdog today announced that the State Administrative Tribunal had granted a supervision order over Macro Realty Pty Ltd, a real estate agency that trades in Victoria Park but is largely focused on Pilbara properties.
The agency has been suspended from business and BDO’s Alan Ferris will take control of its financial operations and begin the process of winding it up.
Acting Commissioner for Consumer Protection David Hillyard said the department had applied to the SAT after Macro Realty failed to appoint a person in control of the agency following the resignation of its previous manager in February.
Macro Realty was given a three-month grace period to find a replacement, but had not yet made an appointment.
Mr Hillyard said the grace period had been granted on the condition that Macro Realty submitted monthly reconciliation reports for February, March and April of this year, a condition that had not been adhered to.
“It is extremely important that agents understand and fully comply with any condition placed on their licence, especially relating to three-month grace periods,” he said.
“The risk for doing otherwise, as in this instance, can be fatal to their business.
“Immediate and decisive action will always be taken to safeguard the money and property of consumers where we believe, on reasonable grounds, that an agent is either unable or unwilling to fulfil their obligations under the Act.”
Today’s order follows the Australian Securities and Investments Commission move to block Macro Realty Developments in September last year from promoting a $100 million Pilbara property trust on the basis that it did not adhere to Australian company regulations.
ASIC obtained an injunction from the Federal Court to block the scheme, which was caught up in a crackdown on a series of schemes marketed by property spruiker Jamie McIntyre.
Macro Realty also drew further attention from the Department of Consumer Protection in December over rental income guarantees in its advertising of properties for sale in Newman.
Those guarantees comprised a 12-month lease term at $1,835 to $2,144 per week.
But the department said the guarantees were misleading and deceptive, while Macro Realty provided an enforceable undertaking to remove them from its existing advertising and not make any further guarantees when marketing its properties.
Macro Realty, which also has a considerable development arm that is not understood to be affected by today’s orders, is being sought for comment.
