A Brisbane real estate agent allegedly pressured a woman into selling her home before misappropriating nearly $200,000 in sale proceeds.
A Brisbane retiree who was allegedly pressured into selling her home prematurely and transferring the nearly $200,000 in proceeds to an agent has been compensated for her loss.
The woman, Fiona Cairns, lodged a claim with the Queensland Civil and Administrative Tribunal (QCAT) for compensation from the Claim Fund, set up to reimburse consumers for financial loss from agents.
In May 2021, Cairns contacted the Cleveland real estate agency to ask about an off-the-plan town house.
In the following months, James George Chetcuti, an agent with the office, allegedly pressured Cairns into purchasing the town house and selling the home she owned before the property would be complete.
Chetcuti is currently facing charges of fraud and uttering, with the matter still before the courts.
The QCAT heard Chetcuti told Cairns the town house would take six to eight months to be completed, although it ultimately took just over three years.
Cairns sold her property for $557,000, claiming it was less than it would have if she had sold when the town house was ready.
The tribunal heard that Chetcuti allegedly deceived the applicant into transferring the sale proceeds, $198,509, to him, telling her he could invest the funds in shares for her.
In July 2021, Cairns signed the contract to sell her home, with Chetcuti officially registering as bankrupt on his own application later that month, unbeknownst to Cairns.
In September of that year, Cairns started transferring the sale proceeds to Chetcuti.
In mid-2023, Cairns realised Chetcuti had misappropriated the sale proceeds and contacted the agency’s principal, who fired him.
Cairns also reported Chetcuti to the police, resulting in him being charged.
Additionally, the police confirmed with a share trading platform that Chetcuti had never purchased shares as claimed.
While Cairns’ lawyer sent Chetcuti’s lawyer a demand for the return of her money, he has not returned any of it, except for $9,000 she previously requested for a trip.
By the time the town house was completed, Cairns could not afford to buy it, and it was sold to someone else in July, 2024.
Cairns lodged a claim with the tribunal for compensation from the Claim Fund, seeking $189,509 for money she transferred to Chetcuti, minus the amount returned to her.
She also claimed $163,435, the difference between what she sold her property for and its subsequent selling price in November 2023, plus at least $41,000 in rent payments she had to make while waiting for the town house.
The tribunal ordered that the Claim Fund compensate Cairns for $271,226, reducing the amount as Cairns had not confirmed with the town house developer when it would be ready.
Additionally, the tribunal named Chetcuti as liable to reimburse the Claim Fund, with the Queensland government able to pursue him to recover the money.
QCAT member, Rebecca Bellamy, said Cairns was “bewildered” that Chetcuti had been allowed to work as a real estate salesperson as an undischarged bankrupt.
Bellamy said that Chetcuti had used his status as a real estate agent and his employment to lay the foundation to deceive and manipulate Cairns.
“I am satisfied that the respondent’s motive was to misappropriate the sale proceeds,” Bellamy said.
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