Consumer Affairs Victoria launches action against The Sarain Pty Ltd and director Surinder Sarain

THE CONSUMER watchdog has launched action against another real estate agency and its director in relation to underquoting and trust account management.

A FORMER Ray White franchisee is the latest to face consumer watchdog action over alleged underquoting and trust account mismanagement.

The Sarain Pty Ltd and its director Surinder Sarain are alleged to have breached the Estate Agents Act 1980 while operating as Ray White Werribee.

Paul Pfeiffer of Melbourne Deluxe Property pleads guilty to trust account charges

Ex-LJ Hooker agents cases split up as hearings adjourned again

Harcourts Wantirna fined $60,000 for underquoting

Glen Huntly Melbourne’s worst suburb for house price quoting

Consumer Affairs Victoria has applied to the Victorian Civil and Administrative Tribunal to hold an inquiry into the marketing of 14 western suburbs properties.

Mr Sarain, 42, of Ormond, and his company advertised the homes for less than the vendor’s reserve price or below the estimated selling price, CAV alleges.

It also alleges Mr Sarain failed to meet certain trust account record requirements.

The Herald Sun has contacted Mr Sarain for comment.

Ray White spokeswoman Lisa Pennell said Mr Sarain had operated at the brand’s Werribee office for about two-and-a-half years from July 2013.

“We actually parted ways with Surinder earlier last year. We had been dissatisfied with the performance of that office for some time and he hasn’t been a part of our group since March 2016,” she said.

Surinder Sarain. Picture: Stockdale and Leggo.

Ms Pennell said she could not elaborate further on why the group was dissatisfied, but said they had not been aware of any conduct that could have breached the Estate Agents Act.

“If we had been aware of that we certainly would have advised CAV ourselves,” she said.

Mr Sarain is now listed as an associate director of Stockdale & Leggo, Caulfield, and the managing director and officer in effective control of 361 Degrees Real Estate.

That brand’s website lists offices in Werribee, Tarneit, Thomastown and Caroline Springs.

The Sarain Pty Ltd is the tenth agency CAV has taken action against in relation to alleged underquoting since launching its Taskforce Vesta crackdown.

It comes as a Yarrawonga real estate agency and its director were fined $15,000 plus costs after pleading guilty to causing trust account deficiencies and misappropriating funds.

A CAV investigation revealed Aldergate Nominees Pty Ltd — trading as Stockdale & Leggo, Yarrawonga — and its sole director, Tracey Anne Smith, 43, of Yarrawonga, misappropriated more than $18,500, relating to 21 transactions, between October 2015 and August 2016.

Ms Smith and Aldergate Nominees’ licences were cancelled as a result of the guilty finding.

Meanwhile, Paul Pfeiffer of Melbourne Deluxe Property will be sentenced in the County Court in October after pleading guilty to misappropriating about $250,000 of clients’ money.

Ex-LJ Hooker agent Tri Duc Ngo, who also goes by Joseph Ngo, will face court again next week in relation to more than 300 charges relating to alleged plundered trust accounts and stolen house deposits of clients of six offices in Melbourne’s east in 2015 and 2016.

Former franchisee and his co-accused Truc Thanh Le Nguyen, who also goes by Judy Tranh Truc and Judy Nguyen, has had her case adjourned until November 1.