Ray White Burleigh consultant apology after ‘miswritten’ body corp law change email

A leading Gold Coast realtor is accusing a rival of pressuring unit owners by misrepresenting proposed body corporate laws that are yet to kick in. The rival claims he has “miswritten”. Full story

The unit complex at 137 Old Burleigh Rd. Picture Glenn Hampson

A leading Gold Coast realtor is accusing a rival of pressuring unit owners into selling by misrepresenting proposed body corporate law changes that are yet to kick in.

Professionals Mermaid Beach director Luke Henderson criticised what he called pressuring sales tactics in emails to unit owners at two Broadbeach complex sites at 133 and 137 Old Burleigh Road.

Ray White Burleigh consultant Alex Day sent emails referring to proposed reforms allowing developers to buy unit blocks with support of 75 per cent of owners as “recently passed law”. After the Bulletin contacted him, he sent a correction to owners, saying he had “miswritten”.

The proposed reforms were announced a month ago by Attorney-General Shannon Fentiman, who said they were intended to make redevelopment easier but not expected to pass until late this year.

As it stands, developers need support from 100 per cent of unit owners.

Mr Henderson received the emails from Mr Day – the Ray White Burleigh sales, marketing and acquisitions consultant – as the representative for family members with units in both Broadbeach sites.

Luke Henderson: “Our job as agents should be to talk to our clients and inform them, not pressure them.” Picture: Jerad Williams

In Mr Day’s email to owners at Yallambee Lodge, 133 Old Burleigh Road, he advised a developer wished to buy all units for redevelopment, and once he had a “positive response from the majority of the owners”, his client would submit a formal contract to each owner.

“I am excited to present the following opportunity to you,” the email said.

“(Developer) APG (Amalgamated Property Group) is still interested to purchase out all unit holders (units 1-11) in Yallambee Lodge at the address of 133 Old Burleigh Rd, Broadbeach for redevelopment.

“Due to the recently passed law of the 75 per cent rule we confirm we would be able to get all onboard provided everything from our last approach is the same.

“This is your opportunity to get a well above premium price while you can. Our local development boom is coming to an end with property prices falling and construction prices increasing. Developers are slowing down and builders are going bust.”

Ray White Burleigh's Alex Day wrote to unit holders apologising for an earlier email: “I’d like to clear up on my previous email today 15/03/2023 that my email was miswritten. The 75% rule has been proposed not passed.”

But Mr Day later told the Bulletin he did not intend to pressure owners into selling and was unaware the reforms had not yet passed. His correction email to owners is headed “75% rule miswritten – correction”: “I’d like to clear up on my previous email today 15/03/2023 that my email was miswritten. The 75% rule has been proposed not passed how it is likely to come in later on in the year. I do apologise for this inconvenience/mistake.”

Mr Day told the Bulletin: “I’m not really pressuring people to sell. I’m stating the fact that there is a new law.

“I understood it to be the law. We both know there are plenty of Chinese developers who will come in when the law passes and get the cheapest units on board to sell and then force the others. This is a chance if owners want to get together to take control into their own hands.”

REIQ CEO Antonia Mercorella said whether the agent misunderstood or misconstrued the proposed body corporate law change, it was important all agents were well informed on the issue.

The body corp law changes were recommended after the October 2022 Housing Summit in a bid to make better use of limited land by making it easier to sell and redevelop ageing or rundown community titles schemes in Queensland.

A spokesman for APG said the company was unaware of any purported offer from Ray White Burleigh to residents of 133 Old Burleigh Road.

The unit complex at 137 Old Burleigh Rd. Picture Glenn Hampson

“Ray White do not represent APG. Our negotiations for possible acquisition of this site concluded last September after formal contracts were issued to all parties and two declined our offer,” the APG spokesman said.

Mr Henderson said owners were rattled by the email, believing they would be forced to sell if eight of 11 owners – nearly 75 per cent – agreed.

He criticised the email and said that while he was not against the body corporate reforms, more detail about the legislative changes were needed as soon as possible, particularly regarding owner safeguards.

“Our job as agents should be to talk to our clients and inform them, not pressure them,” he said.

“The legislation looks like it will happen, I’m just looking for clarity on how it will work and what protection there will be for people who choose not to sell.

“It’s important to get the information out quickly. We had the big announcement a month ago and I know it takes time to perfect the finer detail, but it’s a problem when we already have developers and agents (in discussion with) unit owners who aren’t aware of the full picture.”

‘REAL NEED FOR THIS REFORM’

THE Real Estate Institute of Queensland’s boss says proposed body corp law changes allowing developers to buy blocks if 75 per cent of unit owners agree will ease the housing crisis.

But REIQ CEO Antonia Mercorella said given the controversial nature of the changes, it was extremely important for all agentsand developers to communicate the truth to clients.

Developers will be able to buy unit blocks with support of 75 per cent of owners – rather than 100 per cent as is the casenow – under proposed body corp laws unveiled by Attorney-General Shannon Fentiman last month.

Ms Mercorella said the new laws, yet to kick in, would include safeguards to protect owners in the minority who do not supporttermination.

“Whether by accident or on purpose, it’s not defensible to get that information wrong,” she said.

“This potential change in law is controversial and emotional, that’s why safeguards are important and why extensive consultationwill be necessary. It will take careful consideration to ensure any such laws are not exploited.

“There is a real need for this reform, especially in buildings which are in a state of disrepair, where the land could bebetter utilised and where the vast majority of owners want out, but it should not be used as a sales tactic to pressure people – especially when it is not yet even law.”