VCAT orders property group to refund customer over Tarneit land deal

A woman who paid a $50,000 deposit for a house in Tarneit that never got built has been given a full refund after VCAT ruled she had been “misled”.

VCAT has ruled H&T Realty misled a woman over a house and land package deal in Tarneit.

A nationwide property investment company who “misled” a woman during the sale of a house and land package in Tarneit has been ordered to repay her more than $50,000.

Lin Zhang paid H&T Realty deposits totalling $50,318 for a property in Liston Ave after the Chinese national met Jacob Qi, an agent for the company, through an immigration group.

Ms Zhang demanded her money back when construction still hadn’t started two years after she signed the contract, VCAT has heard.

H&T Realty refunded Ms Zhang’s land deposit but refused to give her the money back she had paid as a building deposit, claiming the payment was part of a services agreement and not conditional upon the development going ahead.

But transcripts of an online conversation showed Mr Qi, who no longer works at H&T Realty, made no mention of a service fee and told Ms Zhang the money was for “construction”.

The transcripts showed Mr Qi also told Ms Zhang she needed to pay a 15 per cent deposit, rather than the standard 5 per cent, because she was an overseas buyer.

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Polo Wang, a senior manager at H&T Realty, told the tribunal he had been at a coffee shop when he bumped into Ms Zhang and Mr Qi, who were sitting at the table next to him.

He said he helped explain the services agreement to Ms Zhang in detail, including the terms of the non-refundable deposit, before she signed the contract.

Tribunal senior member Leneen Forde ruled Mr Wang’s “version of events” not credible.

“It makes no sense that he would join Ms Zhang and Mr Qi … somewhat fortuitously then take over the conversation and explain the services agreement,” she said.

“I find that there has been a reinvention of the facts … (and) accordingly, I find that Ms Zhang was not told about the services agreement or that any money was payable under it.”

Ms Forde said while people are generally bound by a signed contract regardless of whether they’ve read it, Ms Zhang was at a disadvantage as her English was poor and she relied upon the explanation of it’s contents offered by Mr Qi.

“I find that Ms Zhang was misled by (H&T Realty) in relation to the entire contractual arrangement,” she said.

“I find that the service agreement was hidden among other documents and the contents never brought to Ms Zhang’s attention.”

Ms Forde ordered H&T Realty to refund Ms Zhang’s $50,318 and pay her legal costs of $5475.