Real estate agent’s interest not disclosed and sunset clause invoked for double whammy

Lorraine Cooper considers the omission of a crucial detail by a real estate agent was the most galling aspect of a property nightmare that eventually led to her leaving Sydney.

Lorraine Cooper paid a 10 per cent deposit on a $585,000 townhouse to be built at this site by September 2013 / Picture: Adam Ward

“SHE never mentioned her brother was the vendor.”

Lorraine Cooper considers this omission by a real estate agent the most galling aspect of a Sydney property nightmare that’s prompted politicians to change the law and led her to leave for Brisbane.

In November 2012, Mrs Cooper paid a 10 per cent ­deposit of $58,500 from her super for a Berowra Heights townhouse, part of a project due to be built by September 2013.\

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What she didn’t know at the time was the vendor and selling agent were siblings. They cannot be named for legal reasons. The agent ­advised Mrs Cooper to quickly list her Killara unit to be able to pay the balance on completion.

The unit sold in early 2013 for $620,000. But the townhouse was not ready by September 2013 — or September 2014 or 2015.

Then using the “sunset clause” in the contract of sale, the vendor threatened to ­cancel. The townhouses were now worth $770,000, it was claimed. Her new “discount” price was $670,000.

She would have been able to pay up if not for the premature sale of her unit, now valued at $1.2 million.

Priced out of the Sydney market, Mrs Cooper recently bought in Brisbane and will move next year. In Berowra Heights she would have had her son Aaron down the road. In Brisbane she has a cousin.

Mrs Cooper and her son say this story would be very different if the agent had disclosed the vendor was her brother.

“We would never have ­encouraged mum to buy the townhouse if we had known that,” Mr Cooper said.

The agent said she, or someone she worked with, told buyers of the relationship.

However, Public Defender has spoken to three others who say they were not told either.

She was the selling agent for at least one buyer’s existing home. The agent said the project’s problems were “beyond my control”.

In November 2015 state laws were changed to stop ­developers from unreasonably using sunset clauses to rescind contracts. Mrs Cooper and the Berowra Heights saga were cited by Hornsby MP Matt Keen in NSW Parliament.

Lorraine Cooper with her son Adam outside the complex / Picture: Adam Ward