WA Consumer Protection targets rent-to-buy property scheme that took David Beckham jersey in lieu of deposit

Larry SchlesingerDecember 8, 2020

WA's Consumer Protection agency is seeking an injunction against a brother-and-sister team promoting a rent-to-buy property scheme that accepted wedding rings and various family collectables, including a Real Madrid football jersey signed by David Beckham, in cases where tenant/buyers could not afford the upfront fees.

Commissioner for Consumer Protection Anne Driscoll has lodged a Supreme Court writ and will allege that Patricia and Bryan Susilo of the Perth suburb of Applecross engaged in misleading and deceptive conduct in breach of Australian consumer law.

She will further allege that they breached the Real Estate and Business Agents Act by acting as unlicensed real estate agents or implying that they were licensed real estate agents.

Rent-to-buy schemes are targeted at people who don’t qualify for home loans. Buyers agree to pay rent to the seller in return for being able to purchase the property at a later date.

Driscoll says an investigation into the activities of the Susilos indicates misleading statements have been made in advertisements for several properties. Driscoll also says misleading statements have been made about the nature of Patricia Susilo's interest in the properties.

"The alleged misleading statements in advertisements relate to her ownership of the properties and to the amount of weekly payments, which don't match the payments the proposed tenant/buyer was requested to pay. There is also no indication of the upfront option fee or the final price that is payable," Driscoll alleges.

"I am particularly concerned that, in the cases where the tenant/buyers do not have sufficient resources to pay the upfront option fee, Ms Susilo has taken wedding rings and various family collectables as part of the payment for the deposit. These included a Real Madrid jersey signed by David Beckham and a Franklin Mint edition Monopoly board. In another instance, Ms Susilo brokered the sale of a tenant/buyer's vehicle to raise the required deposit funds.

"The proceeds from the transactions are deposited into a bank account of a real estate agent in the eastern states and then transferred to Ms Susilo's personal bank accounts in WA. I am concerned that the funds do not go into a WA trust account and there is no separate account where money is stored for future deposits in accordance with the ‘option to buy' agreements."

 


 

The action against Patricia Mirawati Susilo and Bryan Artawijaya Susilo follows a successful June ruling against another rent-to-buy scheme instigated by Consumer Protection.

In June WA’s Supreme Court ruled that a rent-to-buy scheme operated illegally because the owners were not licensed estate agents and also misled potential clients.

The landmark ruling handed down by Master Craig Sanderson declared that unlicensed promoters of  rent-to-buy scheme No Loan Home Pty Ltd, its sole director Filip (Fil) Butkovic and employee Nikola (Nik) Butkovic, of Nedlands, had engaged in misleading and deceptive conduct.

"Consumer Protection would urge anyone who is considering a rent to buy property proposal to seek further legal and financial advice before committing to a rent to buy contract as there are many reasons to be concerned about the legality of some of these schemes,” says Driscoll.

"We would strongly recommend that consumers only deal with licensed real estate agents in regard to purchasing property in WA. This gives much greater protection as there are laws that are designed to uphold consumer rights and safeguard their financial interests."

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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