The Brisbane real estate agency consultancy Tessa is taking legal action against the developer of the Newstead Series apartment project after it didn't pay $5.2 million allegedly owed for selling hundreds of apartments.
The Australian Financial Review reported Tessa has briefed barrister Simon Couper, QC, and engaged DLA Piper to commence proceedings before the Supreme Court of Queensland.
The case is against JGL Properties-owned company Evelyn Street Project (pictured above).
JGL Properties' inner city Newstead Series project included four towers – The Carlyle, The Donaldson, The Ajax and The Koerstz.
The developer, represented by William Roberts Lawyers, alleges the agency agreement between the two parties is "a clear case of a statutory disqualification with the result that Tessa is not entitled to be paid or keep commissions and fees as the formal requirements were not complied with."
The developer's lawyer said that because Tessa did not get a Form 6 appointment for the apartment towers Ajax and Koerstz, it is not entitled to be paid any commission for sales in two towers.
Tessa has already received commissions and advisory agents fees of $4.95 million to date from the developer but the developer has demanded that be paid back.
The developer denies that Tessa is entitled to payment of a second tranche of fees that become due upon settlement of each apartment sales contract, which started settling last month.
JGL Properties and Tessa both declined to comment on the legal dispute.
The buildings are named after Australia's original wool presses used in the heritage listed woolstores of the Newstead area.