Issue Date:  -  Friday, 7 June 2002

Want & Co. customers awarded payout by REBA

Anthony and Rachel Fulton have today been awarded $30 000 by the Real Estate & Business Agents Supervisory Board (REBA) after it was found that the Floreat real estate agency Want & Co. had misappropriated their money.

The Fultons had paid a deposit to Want & Co. for the purchase of a Floreat Property in January 2002. The sale did not proceed and the Fultons requested a refund of their deposit.

The agency issued a trust cheque for $30 000 on 18 April 2002 that was dishonoured the following day by the Bank due to a lack of funds in the trust account.

Today REBA found that there was a defalcation by the licensee Wanlee Holdings Pty Ltd, trading as Want & Co. on 30 January 2002 when it caused the cheque for $30 000 to be paid into the company’s general account instead of the trust account.

The Fultons lodged their claim with REBA on 1 May 2002 and today they received a cheque for $30 000 from the Board’s Fidelity Guarantee Fund as compensation for their loss.

The Chair of REBA, Ms Judy Eckert said that this case is an example of the system working efficiently and effectively in the best interests of the public. She said that REBA is concerned to ensure that former customers of Want & Co are inconvenienced as little as possible.

REBA had previously closed the real estate agent Want & Co. in Floreat following an alleged misappropriation of approximately $650 000.

REBA acted immediately to investigate Want & Co. following advice received from the National Bank that there were insufficient funds in the agent’s trust account to honour the Fulton’s cheque.

Within four working days REBA had obtained a District Court order to appoint a supervisor and suspend the real estate licences of the agents.

REBA also obtained orders from the Supreme Court ordering the Australian Securities and Investments Commission (ASIC) to “forthwith reinstate the registration of Wanlee Holdings Pty Ltd” (formerly trading as real estate agent Want & Co.).

The Court ordered that “immediately upon reinstatement, the Company be wound up by the Court under the provisions of the Corporations Act 2001 and Jeffery Herbert of PPB Ashton Read Chartered Accountants … be appointed as liquidator of the Company.”

Ms Eckert said that this action was necessary to overcome a technicality which may have caused difficulties for people seeking compensation from the Fidelity Fund.

REBA has also obtained interim injunctions from the District Court over properties owned by the directors of Wanlee Holdings Pty. Ltd. This step was taken to prevent the directors selling their properties while this matter is being investigated.

Since closing the business of Want & Co., REBA has contacted the clients of Want & Co. to identify the extent of any loss. REBA has received 39 claims on its Fidelity Guarantee Fund following the closure of Want & Co., totalling approximately $650 000 and ranging in amounts from $600 to in excess of $200 000. Details about the Fidelity Guarantee Fund are available on REBA’s website at www.reba.wa.gov.au