Frank Valentic Block-Busted!

Frank Valentic, of "The Block" faces a litany of claims alleging illegally breaking consumer laws and acting dishonestly within his company. Block-busted!
I've always wondered, however, how his company can call themselves "buyers agents" but then list property for sale, as part of their group-buying-selling setup.
4/35 Carlisle Street St Kilda Vic 3182 - Apartment for Sale #121265290 - realestate.com.au
Hardly exclusive representation if you're acting for both sides of the transaction.....Also another example of a BA who would fail to meet REBAA requirements, as he clearly lists property for sale and represents vendors. Will be telling what the VCAT hearings in Feb reveal...

 

i really enjoyed his appearences on the block and especially in bidding. he seem cool. then again

"The allegations are set to be heard at a hearing by VCAT, commencing on 15 February."

until it is set in stone - i probably wouldn't want to accuse someone.

 

Plenty of companies who do both. Cushman Wakefield recently purchased DTZ who mostly represented commercial tenants but now also covers leasing and sales.

 

No business can bat on every side and angle simultaneously. Find your position, stick to it, and do it well otherwise things like this catch up with you.

 

Well said Abby and I agree 100%.... murky waters indeed.

 

Prime example of how NOT to be a buyers agent. Jaque was he a REBAA member?

 

Ummm, No.

 

I'm not up to date with the industry, but I thought the block buying stuff was when he got a bunch of investors together and bought a block which they then did up the outside on and increased the value? He is still acting for the buyer, in purchasing the block, he still gets a fee from the buyer only (not the seller of the block). Perhaps Im mistaken, but that add looks like they are advertising the buyers advocate proposition, not representing both the buyer and seller.

NB, I will disclose I bought a flat in Murrumbeena using his services and purchased as part of the group buying strategy in Malvern as well.

 

what's ur take on his group buy services? any good and would you do it again? i like his animated style of bidding on the the block every year. Saw his fees for those group buys is 13K.

 

I was happy overall, 25 Clarence st Malvern. I bought 1 bed unit, 40sqm, (upstairs, so didn't get a courtyard). From memory the purchase price was $220k, plus 12 BA fee plus another 12 or so to do up the outside. 6 month settlement, val at purchase $350k. It was the end of 09 so the sky was falling in, and there was an uptick in the whole Melbourne market at the time, but the CG was still pretty impressive.

I was unhappy with the body corp. The other owners wanted a remote controlled gate to the car park, 'for safety' even though tenants then need to reenter the street to get to the front doors. I don't think that added any value, but I don't sweat the small stuff if I can help it.

 

@tobe yeah i know that place used to stay off tooronga road (close to monash) easy tenancy. his st kilda ones are going for 295K for 1 bedder.

 

bump, @Jacque @Propertunity

 

Hi Tobe,
The recently updated REBAA code of conduct is published here: Code of Conduct - REBAA
Under the section, In performing the services to clients, REBAA members will:
Item 18 (in part) states: Not list properties for sale; not be involved in any form of direct selling, and; not market properties to potential or past clients, be it established properties or off-the-plan developments......

So BAs who do operate contrary to this would therefore be ineligible for REBAA membership.

 

Indeed. But I'm not sure how this ad breeched those rules? They are not representing the vendor, they have organised a wholesale price on the whole block, and then arranged a group of buyers to take up units in that block. The vendor isn't represented by them, they don't receive any money from the vendor. The investors sign a nomination form for settlement.

Am I missing something? Are BAs only allowed to seek one property for one person at a time? There are no other methods allowed?

 

I too have looked at buying these however when i went to the open for inspection that was advertised on realestate.com.au i assumed i was inspecting a normal property from a selling estate agent; but i showed that i was interested and asked for the section 32 was told that i had to pay an additional fee to purchase the property? couldn't understand it as i was at the open for inspection and walked away.


a journalist friend of mine sent this through a week ago and i have spoken with a property lawyer and both have indicated that "double stamp duty is payable" if you have purchased one in the past i would take note of the special conditions not just in the authority but also the contract of sale and when you engaged the company and signed the contract of sale.


If you purchase a property in your name and or nominee and then substitute another onto contract with no change in value and no fee payment, only one amount of stamp duty is payable.

If you have an agency agreement in place, you can buy in the agents name and or nominee , substitute the client onto contract and charge a fee with still only one amount of stamp duty payable.

BUT, if you do not have an authority in place and substitute a client after purchase and charge a fee, then 2 amounts of stamp duty are payable. Backdating an authority to before the purchase date would be illegal and encouraging anyone to do this would also be illegal.

Instructing purchasers to backdate legally binding agreements circumvents millions of dollars of stamp duty.

Buying a property with long settlement then getting others to purchase it for a fee during settlement without paying double stamp duty is illegal

Trading in property during settlement without paying multiple stamp duty is illegal and should be stamped out.

 

Damien Cooley was an absolute star as an auctioneer. IMO he used all the tactics perfectly and didn't let up for a second until he got a fantastic result.. I was watching him and I couldn't fault him for a second. I would be wanting him to sell my property.

 

Agree Leo- he is a fantastic auctioneer and I've had the pleasure of bidding at several of his auctions, as well as being involved in REINSW judging of him (and his talented brother Andrew) Consummate professional and squeezes every last dollar out of buyers that he possibly can.

 

Hi @Jacque

You said it spot on, 'squeezing every last dollar out of buyers'.

I was watching the guy, frankly in awe, and thinking...this guy is mentally conditioning the bidders that the price is still a bargain even though everyone KNOWS its already am amazing amount. With every word he uttered, every pause, every subtle suggestion, every look, his tone, his speed and conviction. Highly skilled professional in every sense.

What a champion. I will definitely be getting him to sell my stuff in the future.

 

Damien Cooley in Action.

What an auctioneer champion.