The Estate Agent - December-January 2014 by Real Estate Institute of Victoria

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Contents

12 ‘These annual awards are an industry highlight and acknowledge the hard work and effort that our members put in throughout the year’ REIV chief executive officer Enzo Raimondo

Cover story GALA NIGHT SALUTES THE BEST

Glittering awards ceremony pays tribute to the industry’s top performers

Features

Veteran takes the reins With almost 50 years’ industry experience, new president Ian McDonald has the REIV in safe hands

Licensing review New Labor government vows to look at deregulation of large commercial sales and leasing transactions

Internationals sample the Aussie way World real estate agents share information, business and experiences during Melbourne networking meeting

Small agencies can make a big difference REIV Charitable Foundation focuses efforts to provide support to thousands of homeless

20 The Estate Agent ❘ January 2015

Contents

7 CEO Report 10 Bulletin 24 Member News 29 Obituaries 31 REIV Directory

Publisher REIV 335 Camberwell Rd, Camberwell, Victoria 3124 Editor Paul Bird pbird@reiv.com.au

Advertising Rick Fiedler rfiedler@reiv.com.au 9205 6654

THE ESTATE AGENT

Estate Agent is published by the Real Estate Institute of Victoria.

The Estate Agent â?&#x2DC; January 2015

The views and opinions expressed in articles and columns of Estate Agent are those of the writers and do not necessarily represent those of the Real Estate institute of Victoria

Leadership

Veteran takes the reins

With almost 50 years’ industry experience, new president Ian McDonald has the REIV in safe hands

an McDonald, a real estate agent and valuer with almost 50 years’ industry experience, is the REIV’s new president. He was selected by the board to succeed Neville Sanders at its meeting in October. McDonald, who began in the industry in 1966 and became a licensed estate agent three years later, is director and officer in effective control of Arbee Real Estate in Bacchus Marsh. As is the case with many agents, he and his agency are an important part of the Bacchus Marsh community. The agency website carries community information and McDonald is a past president of the local Rotary club and a member of the Bacchus Marsh Town Centre Revitalisation Group. After playing a leading role with the REIV for many years, Ian McDonald joined the board last year. His involvement has included serving as president and secretary of the western suburbs branch and as the branch’s representative on the Real Estate Council. He has been a member of a number of committees and working groups, including the former planning committee, tariff committee and legislation and documentation committee. He has also chaired REIV’s Estate Agents Committee, which advises on good agency practice and monitors legislative change. McDonald, who was educated in Horsham and Ballarat, qualified as a valuer at RMIT and is also a qualified land economist. He began his real estate career in Footscray with Condi & McDonald and moved to Bacchus Marsh in 1983. As well as being a registered valuer, licensed agent and auctioneer, he is a Fellow of the Australian Property Institute, a Fellow of the Real Estate Institute of Australia and an associate

‘I am delighted to have the opportunity to use my extensive experience in real estate at all levels – suburban, national and international – for the benefit of the REIV and its members’

Wealth of experience: New president Ian McDonald.

member of the Institute of Arbitrators of Australia. He is also a member of the Royal Institute of Chartered Surveyors. His agency is part of Real Estate Professionals, of which he became a director in 1985. He is a member of the Australian Institute of Company Directors. Since 1996 he has been company secretary of the Professionals Group Council, of which he became a director in 1991. Its responsibilities include corporate governance, compliance, trademarks, administration and international registration. He is also a director and company secretary of Realcorp Systems, responsible for the national and international trademarks of Real Estate Professionals. As well as this industry knowledge and experience derived from his

own agency and his involvement with Real Estate Professionals, McDonald has undertaken extensive professional development. This has included research on franchising in the US, study in relation to corporate compliance and governance of ASICregistered companies and lodging and administration of professional marks and logos in Australia, New Zealand, Asia and parts of the EU. McDonald’s real estate franchising expertise has also been drawn on by Australia’s Asian neighbours. He has twice been the recipient of Austrade grants for the export of Australian real estate expertise in establishing master franchise systems in Thailand, Singapore and Indonesia. He is committed to the increasing professionalism of the real estate industry and a strong supporter of the training programs and continuing professional development offered by the REIV. “I am delighted to have the opportunity to use my extensive experience in real estate at all levels – suburban, national and international – for the benefit of the REIV and its members,” he told EA. “We have a hardworking and enthusiastic board with several new members representing the many aspects of the industry covered by our institute and we look forward to tackling the challenges of the year ahead.” The Estate Agent ❘ January 2015

Leadership

A familiar face

Former president takes the lead in Canberra

EIV immediate past-president Neville Sanders is the new head of the Canberra-based Real Estate Institute of Australia. An REIA director since 2012, he was elected to the role in December – replacing Tasmanian Peter Bushby, who served two years as REIA president. Sanders believes key issues in 2015 will be providing a national “voice at the table” on tax reform for real estate agents – in particular, advocating for abolition of stamp duty and for the retention of negative gearing. Sanders stood down from the REIV presidency in October, after serving two years. He remains a director, having been a member of the REIV board since 2006. In his capacity as REIV president, he was active in the campaign against a one-size-fits-all national real estate licensing scheme proposed by the Council of Australian Governments in July. This would have created extra costs

Sanders has been involved in real estate for almost 50 years and has been a member of the REIV since 1971 and increased red tape for Victorian real estate agents. REIV and REIA successfully campaigned for the scheme not to proceed.

Sanders is Victorian state manager for strata management company Whittles Australia, which has offices in five states and territories. He has been with Docklands-based Whittles since 2009. He has been an active and vocal advocate on issues relating to owners corporation management and is currently vice-chair of the REIV Owners Corporation chapter. He is a keen proponent of highly professional owners corporation management and continuing education for those in the sector. An REIA fellow, Sanders has been involved in real estate for almost 50 years and has been a member of the REIV since 1971. He is a qualified valuer who studied at RMIT and is a thirdgeneration real estate agent. Before joining Whittles, Sanders was general manager with RE Appleby, where he had worked for more than 21 years and was previously officer in effective control. He is also president of not-for-profit aged-care provider Glengollan Village in Ferntree Gully, of which he has been a director since 1999. And he is a published author, having published A Brief History of Boronia, Victoria in 1985.

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CEO Report Enzo Raimondo CEO REIV

Big vote of confidence in auctions and a big vote for our future

busy and rewarding year for the REIV and the industry culminated in the setting of new auction records for the state and the election of a new Victorian government – one we anticipate will listen to our industry’s concerns. The Andrews Government has pledged to review the deregulation of large commercial sales and leasing transactions, a highly undesirable regulatory change forced on the industry by the Napthine Government just days before it entered caretaker mode in the lead-up to the November election. This change had been announced in January as part of the previous government’s anti-red tape measures. The REIV launched a concerted lobbying campaign against a two-tiered system, with licensed agents required for transactions of less than $15 million and no licence needed for larger transactions – creating risk for buyers and favouring large landlords at the expense of small business. Despite the REIV subsequently being assured in May that any decision had been deferred until the end of the year, I was advised by the government in October – after a public campaign by the Shopping Centre Council of Australia – that it would go ahead with the proposal. In light of this ill-advised decision and the government’s refusal to reconsider, the REIV took its concerns to MPs and the public leading up the election. I believe this was the necessary response to a serious threat to our industry. We now have a government that is sympathetic to our position. We are also in a much stronger position to oppose these commercial licensing changes than we were before the election. This was also the year in which the Victorian real estate industry took its place on the world stage. The induction

‘We are also in a much stronger position to oppose these commercial licensing changes than we were before the election’ of Robyn Waters as world president of the Paris-based International Real Estate Federation (FIABCI) in May was momentous, both for Robyn and our industry. She is the first woman and first Victorian to head this network of real estate professionals from 55 countries – one of only three Australians to do so. Robyn has demonstrated that the skills and professionalism of our industry are world-class. FIABCI’s mission is to open the international community to its members and to increase business opportunities. I am pleased to note a 50 per cent increase in FIABCI’s Australian membership in the past year. In October, the world FIABCI board, senior property professionals from around the world, met in Melbourne, hosted by the REIV – an opportunity made possible by Robyn’s elevation

to the world presidency. During the visit, board members saw our worldleading auctions system in action – an eye-opener for some members who hailed from countries where auctions are a means of disposing of distressed properties. And there was no shortage of auctions for them to see, with about 40,000 auctions held this year – a new record, up from 34,500 last year and beating the previous record of 34,619 set in 2010. The spring auction market this year was the strongest ever. On October 25, super Saturday – with more than 1000 auctions – became mega Saturday, with 1682 auctions – a new record. This was followed closely by about 1500 auctions held on the weekend of December 6-7. Despite interest rates being at historic low levels since August 2013, access by first home buyers to the Victorian The Estate Agent ❘ January 2015

CEO Report

property market remains a concern. Nationally, first home buyers comprised just 12 per cent of total owner-occupier housing finance commitments in September. REIV welcomed the reductions in stamp duty for first home buyers which took effect in September, but we support further action to help young buyers get a foothold on the property ladder. It is unfortunate that the first home owner grant applies only to those buying new homes. The REIA, representing the REIV at the national level, appeared before the Senate Economics References Committee inquiry into affordable housing. It advocated for access to superannuation for first-time buyers and also the availability of first home owner grants for the purchase of existing homes – presently the case in Western Australia and the Northern Territory only. The REIV is committed to supporting and assisting members as the increasing

‘Without an internet strategy, the industry could suffer the fate of the travel industry’ online focus of home sales creates challenging times for agents. The battle for their advertising and data threatens their relationship with vendors, with some online portals now trying to use agents’ data to match buyers with sellers directly. Without an internet strategy, the industry could suffer the fate of the travel industry – that is, middlemen removed from transactions. RealestateVIEW.com.au, majorityowned by the REIV, is the only portal dedicated to helping agents maintain control of advertising costs through competition and cost-effective marketing solutions. It is within striking distance of the two largest online portals and with industry support could overtake them. This year the realestateVIEW.com.au team conducted roadshows across the

state to explain its work to agents and how they can regain control over the marketing of property. The REIV is committed to assisting realestateVIEW.com.au in its mission to support, enhance and protect the role of estate agents as the only experts in property transactions. The REIV has a responsibility to advance the professionalism of all members and I believe is doing so through its increasing range of courses and training opportunities. We also pledge to continue leading and representing our members – as we have done this past year – in the face of challenges such as those posed by the online sector and moves by government to dilute licensing requirements which compromise the standards and integrity of our profession.

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The Estate Agent ❘ January 2015

Licensing

Licensing review

New Labor government vows to look at deregulation of large commercial sales and leasing transactions

ictoria’s new Labor government has pledged to review the deregulation of large commercial sales and leasing transactions, forced on the industry by the previous government just days before it entered caretaker mode. Mindful of the potentially serious effect of these regulations, not only on the real estate industry but small business as a whole, then-shadow Consumer Affairs Minister Robin Scott attended the REIV’s information rally for members the week before the election and pledged the review. The Napthine Government’s move, to take effect next July, came despite a year-long campaign by the REIV highlighting the implications of the plan, announced in January as one of 36 anti-red tape measures. In May, the REIV had received

undertakings from both the office of the Minister for Consumer Affairs and Consumer Affairs Victoria executive director Dr Claire Noone that the change would not proceed this year.

‘The REIV welcomes the review and looks forward to co-operating fully with it’ This about-face followed a concerted campaign by the powerful Shopping Centre Council of Australia. The deregulation – removing licensing requirements for agents involved in the selling and leasing of commercial property valued from $15 million – means unqualified, inexperienced and unlicensed operators could sell and lease

commercial real estate. Unlicensed operators would not be bound by the Estate Agents (Professional Conduct) Regulations, nor be subject to probity checks or required to maintain an audited trust account. In the lead-up to the election, Mr Scott said: “It is important to ensure that we are getting the balance right between small businesses and big shopping centres.” The REIV welcomes the review and looks forward to co-operating fully with it. REIV CEO Enzo Raimondo says: “We are confident it will identify not only the risks associated with this change, but also the inconsistency of a two-tiered system, with unlicensed agents handling transactions worth more than $15 million.”

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REIV 1

The Estate Agent ❘ January 2015

Bulletin and will mean immediate access to the proceeds of sale. Transactions able to be conducted online include: lodging title dealing documents and related instruments to register ownership changes; allowing parties to view and complete documents to conclude the property exchange; allowing electronic settlement of all financial transactions at a nominated date; and lodging land title instruments for registration. All participants in a transaction must register with PEXA – there is no joining fee as fees are per transaction. PEXA verifies the identity of those who register and they must verify the identity of their clients. Lawyers and conveyancers open an online workspace where the registry documents and settlement scheduled are created and all parties share the transaction information. Subscribers with digital signing rights must be issued with a digital signing certificate. The REIA says this has the potential to improve regulation of foreign investment in Australian real estate. “The platform also has the potential to allow for early detection of irregular activity and help ensure that all appropriate checks and balances are in place,” it says.

Online property deals simpler, quicker, more accurate and cheaper Lodgments and property settlements can now be completed online by some Melbourne conveyancers following the initial rollout of Australia’s first national e-conveyancing platform. Property Exchange Australia Ltd (PEXA) is an unlisted public company owned by the Victorian, New South Wales, Queensland and Western Australian governments, as well as several large financial institutions. It removes the manual paperwork and processes associated with the exchange of property. The company was formed in 2010 to deliver national electronic conveyancing to the Australian property industry. Rollout began in Victoria and New South Wales in October, with preselected property lawyers and conveyancers in Melbourne and Sydney. The entire Victorian and New South Wales markets will be invited to join, with other states and the Northern Territory to follow next year. Land registries, financial institutions and practitioners will be able to transact together online for the first time. PEXA says practitioners will be able to provide savings to customers by reduced

disbursements – documents will be quicker to prepare and it won’t be necessary to attend settlements. It will also be more efficient and the technology will reduce errors. The Real Estate Institute of Australia says this will make buying and selling property “simpler, quicker and more transparent”

To download a fact sheet, visit reia.asn. au/agents/e-conveyancing-is-here/

Program unlocks the door for Victoria’s homeless

The Estate Agent ❘ January 2015

MI Fellowship

An innovative, REIV-supported program to house homeless Victorians with severe mental illness has reduced their hospital admissions, improved their mental health and increased the numbers able to work. Mental Illness Fellowship Victoria, which ran the Doorway program in partnership with Austin Health, St Vincent’s Hospital and Latrobe Regional Hospital, has found the improvement so great that one third of participants no longer need help from mental health services. Doorway was a three-year pilot project funded by the State Government with $3.2 million over the three years to June 2014. It has been deemed so successful, $4.1 million was provided in this year’s state budget so it could continue for another four years. In its three years the program housed and supported 59 people, previously homeless or living in tenuous housing. A housing and recovery worker helped each find a rental home, with 27 Victorian real estate agents taking part.

They were also helped to maintain their tenancy, work out how to pay their rent by themselves and recover from their mental illness. They were required to pay 30 per cent of their income towards the rent with the project providing time-limited top-ups. The participants were involved in every part of the tenancy process – house hunting, preparing rental applications and liaising with real estate agents. Leases were in their names so they could

establish rental histories. There were few tenancy-related incidents with only six lease breaks and 11 occasions of arrears. Year-long lease extensions have now been offered to 31 and three others have renewed on monthly rental. REIV CEO Enzo Raimondo said the institute was delighted with the response from landlords. “We’re also proud of the role estate agents, including property managers, have played – working alongside community mental health organisation MI Fellowship to give people with mental illness the opportunity to create a home,” he said. MI Fellowship chief executive Elizabeth Crowther said for most of those taking part, it was the first time in their lives they had stable and secure private rental accommodation. The evaluation of the project, developed using the Housing First model from the US, showed it cost less than all other kinds of social housing and saved the Department of Health an estimated $11,000 in expenses for each person per year.

Bulletin

Virtual currency Bitcoin is on a roll as more people embrace the money you can’t really get your hands on

iStock

A currency which exists only in the virtual world and can not be printed nor tucked into a pocket may sound futuristic. Yet Bitcoin, with a 96 per cent share of the digital currency market, has already overtaken Western Union’s volume of global daily remittances and its proponents say it is poised to overtake PayPal. In the US, property sales are already underway in Bitcoin. In August, a Silicon Valley entrepreneur bought a US$1.6 million Lake Tahoe property using Bitcoin. Online Bitcoin luxury marketplace BitPremier.com lists property in Bitcoin. So it is likely to be only a matter of time before buyers here – particularly those with funds in another country – want to pay using the digital currency. Already websites and apps such as igot.com offer payment of rent using Bitcoin and Sydney real estate agency Forsyth is accepting Bitcoin for house deposits and advertising costs. In March it became the first Australian agency to do so because of the influx of international buyers to the Sydney market. Bitcoin ATMs are appearing in Sydney and Melbourne, BitPOS – Bitcoin eftpos machines – are being rolled out, and Melbourne-based Bitcoin exchange Coinjar will soon offer the first Australian eftpos card linked to a Bitcoin account. Meanwhile, despite Australian banks’ scepticism about Bitcoin and the Australian Tax Office’s refusal to categorise it as a currency, the Senate is inquiring into how to regulate the volatile digital currency market. The REIV has received inquiries from agents and property managers about payment in Bitcoin, including whether it is legal, whether they are obliged to accept it and whether they should. Bitcoin, now accepted by Amazon and even some small retailers and pubs, was invented in 2008 by an anonymous person, or group of people, called Satoshi Nakamoto. While in theory anyone can create and sell them to other people online, in practice the maths formula is extremely complicated. A supercomputer is required, says Ron Tucker, chairman of the Australian Digital Currency Commerce Association. Tucker, also managing director of Bit Trade Australia, one of numerous Bitcoin exchanges through which the digital currency is bought or sold, says there are 106 digital currencies but Bitcoin is the only one past the developmental stage. Only 21 million Bitcoins will be “mined” (brought into existence) and half of those already

exist, with the last one due to be created in 2040. The currency has many advantages, he says, especially the lack of bank transaction fees, its liquidity and the immediacy of transmission and settlement. It is not only a currency, but a commodity traded like shares on the stock market and a payment processing network. After Bitcoin are bought online they are stored in a Bitcoin wallet, comparable to an email address, and are as readily accessed as an email, for example via mobile phone, computer or tablet.

‘It’s a generational difference ... they have a mobile phone in their pocket and that’s where they keep their money and they can send it in the blink of an eye’ – Ron Tucker “It is very secure,” Tucker says. “There has never been anything like it. If you have a mobile phone, you have a bank in your wallet.” One problem has been its notorious volatility. So if someone pays rent or a property deposit in Bitcoin – one is currently worth about $400 – what is to stop it being worth more or less by the time the agent converts it to Australian dollars or sends the funds to an owner or vendor? Tucker says that may have been an issue in the early days. However it is more stable now. But to avoid any risk it is important to make the trade to Australian dollars

quickly. Several companies are developing ways to offer immediate conversion, and the BitPOS Bitcoin terminals now being rolled out around Australia put cash into the shopkeeper’s account at the exchange rate at the time of the transaction. “So it has been addressed, the solutions are already there,” he says. “You can get cash immediately, you can hold it or you can play the market.” Accepting payment in Bitcoin is legal and Tucker says the savings in transaction and exchange fees mean requests for payment in Bitcoin will increase. “It is a generational difference; this makes a lot of sense for a particular market segment. It is convenient and easier and saves them the banking fees. They have a mobile phone in their pocket and that’s where they keep their money and they can send it in the blink of an eye. “Any property managers who adopt agile thinking now could be well-placed to take advantage of the shift that is taking place in the banking sector,” he says. He recommends those who do accept Bitcoin to minimise their risk by converting it quickly to Australian dollars, or the currency required by an owner or vendor. “The tide is turning, it is coming, it is here. Being prepared early on is always a wise investment.” For more information watch the What is Bitcoin? video at this link: www.weusecoins.com/en/ or download the free (and unrated) app Bitcoin: Everything about Bitcoins with 41 lectures The Estate Agent ❘ January 2015

Awards

Gala night salutes Victoria’s best Industry gathering pays tribute to top performers in customer service with a glittering awards celebration at Crown

Having a ball: More than 1200 members enjoy a gala night in the Palladium ballroom; Joseph Walton of Allard Shelton who, along with Colliers International, won the C & I gold award for overall excellence in marketing for their Block Arcade campaign.

he REIV Awards for Excellence in late October provided a dazzling night, attended by 1300 members from across Victoria. The awards recognise the industry’s best performers, paying tribute to the agencies and professionals who are setting new benchmarks in customer service excellence. A record number of nominations across several award categories were received in 2014, with the winners announced at a gala event held in the Palladium ballroom at Crown Casino on October 23. Television and media personality James Mathison hosted the evening, which attracted members representing various disciplines from estate agency practice.

The Estate Agent ❘ January 2015

“These annual awards are an industry highlight and acknowledge the hard work and effort that our members put in throughout the year to achieve the best results for their clients and the property

‘These annual awards are an industry highlight and acknowledge the hard work and effort that our members put in throughout the year’ industry,” REIV chief executive officer Enzo Raimondo said. “Importantly, these awards also recognise the agents and their businesses who are constantly raising the bar – lifting professional standards to the

highest levels and contributing to best practice in real estate sales, management and related disciplines.” Final contenders were selected by judges who are industry representatives, Mr Raimondo said. “The winners and finalists across the different categories are all leaders in their specialist areas. This event is an opportunity for those who have been nominated to stand proudly in the industry spotlight,” he said. The awards were made possible by the generous contributions of Gold Sponsors realestateVIEW.com.au and Direct Connect and Bronze Sponsors Smarthouse Fire Solutions, Macquarie Bank, Sothertons Chartered Accountants, Realcover, Real Estate Career Developers and Pro Light & Sound.

Awards

Award Winners 2014 MARKETING AWARDS RURAL MARKETING AWARD Bell Real Estate Yarra Junction: Shirley Heights, 640 Little Yarra Road, Gladysdale RESIDENTIAL MARKETING AWARD (BUDGET UNDER $10K) First National Real Estate Lindellas: 15-17 Irving Avenue, Box Hill RESIDENTIAL MARKETING AWARD (BUDGET OVER $10K) Melbourne Real Estate: Jaques, 1 Palmer Street, Richmond Avenue C&I GOLD AWARD FOR OVERALL EXCELLENCE Colliers International and Allard Shelton: The Block Arcade BEST WEBSITE AWARD The Fletchers Group Corporate Promotion Award (Single Office) Woodards Corporate Promotion Award (Multiple Offices) Hockingstuart realestateVIEW.com.au

Agency of the Year Award – Auction Woodards Blackburn

Commercial Property Manager of the Year Michael Cooper, CBRE

realestateVIEW.com.au Agency of the Year Award – Private Sale Lucas Real Estate

Commercial Salesperson of the Year Brett Diston, Ray White Commercial

INDIVIDUAL AWARDS Residential Property Manager of the Year (Principals) Dylan Emmett, Lucas Real Estate

Residential Property Manager of the Year (Non-Principals) Jennifer Rowe, hockingstuart Bentleigh Residential Salesperson of the Year (Principals) Jeremy Rosens, Gary Peer & Associates St Kilda Residential Salesperson of the Year (Non-Principals) Mark Di Giulio, Barry Plant Manningham Honorary Life Membership Don Brindley REIV President’s Award Geoff Sutherland

Buyer’s Agent of the Year Janet Spencer, Buyer Solutions Australia Business Broker of the Year Natalie Sirianni, Attain Owners Corporation Manager of the Year Lesley Kenna, Doepel Lilley & Taylor Achievement Award Adam Davy, Colliers International Corporate Support Person of the Year Fiona Nicholson, Barry Plant Manningham Outstanding Young Agent of the Year Award Paul Tzamalis, CBRE

Novice Auctioneer of the Year Luke Banitsiotis, Woodards Blackburn Senior Auctioneer of the Year Harry Li, McDonald Real Estate Springvale

AGENCY AWARDS Innovation Award Gary Peer & Associates Communications Award hockingstuart Community Service Award Nelson Alexander Commercial Agency of the Year CBRE Small Residential Agency of the Year Noel Jones Mitcham Medium Residential Agency of the Year Melbourne Real Estate Large Residential Agency of the Year Nelson Alexander

The Estate Agent ❘ January 2015

Awards

Residential Sales Person of the Year (Principals) Jeremy Rosens

Gary Peer & Associates St Kilda Thanking family and the team is surely part of any award-winner’s duties. The REIV awards night offers little chance for Oscars-like gushing, so it’s hardly surprising that when Jeremy Rosens is asked to explain his success, he mentions his team. But in his case it is not just lip service. Since Rosens moved from Gary Peer’s Caulfield office to establish its St Kilda office in February 2012, he has headed an innovative, three-person sales team – “a pod”, he says with a laugh – which operates as a single agent would have in the past and still does in some offices. While Rosens, 38, deals with the vendors and is auctioneer, his buyer manager and personal assistant Daniel Micmacher sources and works with buyers. His campaign co-ordinator and administrative PA Jade Wilson chooses photographs, prepares documents and deals with the myriad administrative tasks which accompany property sales. “When I started in real estate, you had to be everything – you were the proofreader, the copywriter, the floor plan artists, the person who puts the board out at the end of the street,” Rosen says. “Now you need to have a team of people with expertise in their field. Every other job has it.” It is, he says, an EBU – an effective business unit – and he adds, “my job is to be the captain of the ship”. Rosen’s team grossed $1 million in commission value in the past year and he sees its way of working as the way of the future: “If you don’t have the team behind you, I don’t think you are going to get very far,” he says. “Everything gets overseen by me. It’s so much better for our vendors. Every testimonial we get 14

The Estate Agent ❘ January 2015

Big night: Jeremy Rosens accepts his residential sales person of the year award at the REIV Awards for Excellence.

mentions all three, all the time.” This team-oriented approach is also part of the Gary Peer culture, says Rosens, who was with the agency in Caulfield for 13 years before the move to the eightperson St Kilda office as a partner and officer in effective control. “We have a very strong culture within the organisation and we are big on that,” he says.

‘I think there will always be a place for agents. I think the goodwill gets better and the bad agents will disappear’ Rosens came to real estate at 19 after dropping out of a business degree at Victoria University. Real estate was a classmate’s idea and several classmates are now in the industry. Previously with Talbot Birner Morley in Caulfield, Rosens started in sales as a personal assistant. It was a great way to learn, he says. He also praises the influence of principals Gary Peer and Phillip Kingston: “They have been massive mentors for me. They taught me a lot about real estate and just as much about life – finances, I got married, bought houses, cars, had kids, all under their watchful eye.” Rosens says the agency values the REIV awards and Rosens entered this year

having been unsuccessful last year. “I wanted to win it,” he says. “In our eyes the REIV, the governing body for us, holds a bit of prestige within our office. For us, it is about being judged by your peers. “It’s the one night of the year when we all get to pat each other on the back and have a drink with our competitors.” Rosens, a strong advocate of training, says the industry has become more professional. “The advent of the internet means a real focus on providing high levels of service,” he says. “I think there will always be a place for agents. I think the good will get better and the bad agents will disappear. So it is a cleansing of sorts.” He describes himself as passionate about what he does and says, “You have got to be hungry.” But while he acknowledges the efforts of the home team, in particular wife Micheline, who works part-time to focus on son Ryder, 8, and daughter Indigo, 5, he says the team approach also makes a better work-life balance possible. Rosens takes his children to school every day, has Fridays off, attends school concerts and coached his son’s football team this winter. “It was a big time commitment but I managed quite easily,” he says. How? “The EBU.”

Awards

Large Residential Agency of the Year and Community Service Award Nelson Alexander It’s all about the people: “If you have good quality people, keen to do the right thing, that’s the bottom line,” says Nelson Alexander managing director Paul Lunardi. “If I was to pick the single most important reason (for the agency’s success) it would be the people. We are people-minded, property driven.” Lunardi says that while he is excited the agency, founded in 1976, has won the Large Residential Agency of the Year award for the sixth time, it is the Community Service Award he values most. “It is developed and run by our staff and they love it; it empowers them and enables them to contribute to their communities,” he says of the Nelson Alexander Charitable Foundation. The foundation, started in 2005, is

run by a committee of employees. The agency’s 265 staff are granted two days paid leave a year to take part in their choice of volunteer programs. And at its annual Foundation Day each of its 13 offices – 12 residential and one

‘If I was to pick the single most important reason (for the agency’s success) it would be the people’ – Paul Lunardi commercial – donate the proceeds of an auction to their chosen local charity. This initiative began seven years ago and has raised more than $1.3 million. “This year alone we have donated to 93 causes or individuals in need,” Lunardi says.

If the foundation and charitable work is a source of pride for Lunardi, increasing the agency’s community profile, so too is Nelson Alexander’s $2.1 billion sales volume for the past 12 months. The agency is wholly-owned, not franchised. “What that means is we share every bit of information and our market knowledge about current rentals, sales processes, who is in the market,” Lunardi says. “That puts us in a very strong position to provide very accurate information to clients who are thinking of selling. There are no boundaries and no restrictions, everyone has access to everything.” The agency also runs extensive inhouse training programs and encourages its 90 sales staff to become fully licensed and active in the REIV. In the past year Nelson Alexander has increased its branch network with the purchase of McLaren Real Estate in Kew and the opening of a branch in Coburg – the suburb with Melbourne’s fastest growing median price in the September quarter. Continued on page 16

Class acts: James Keenan, Christine Wamala, Nicholas West, Enzo Raimondo, Paul Lunardi, Milo Rasinac and Duncan McPherson.

The Estate Agent ❘ January 2015

Awards

Continued from page 15

“We will continue to grow and within our existing footprint we will continue to make sure that we do the right thing,” Lunardi says. “We are not looking for growth for the sake of growth – it has to fit the culture and people; if it has good quality people and is good quality growth.” Nelson Alexander has also expanded its property management arm with the purchase of the rent roll of Clifford Real Estate in Moonee Ponds. That has grown its properties under management from 7500 to 11,500 in the past year. “We have been encouraging the

growth and development of our property management department,” Lunardi says. This enables the building of the database and relationships with those clients, with the agency able to introduce them to the other services it can offer them. “Not only has it been one of the reasons we have done quite well, it is going to sustain us through any change in the marketplace – that client base and income stream,” Lunardi says. He knows that one of the biggest changes in the marketplace is advancing technology: “The ongoing rise of digital is the biggest thing we have seen over the last few years,” Lunardi says. “We cannot

ignore it, we have to embrace it.” He says building strong, people-topeople relationships is key, but Nelson Alexander is developing its CRM (customer relationship management) system and has employed a full-time IT person and a full-time digital marketing manager. “We have had to do that to keep up,” Lunardi says. “You have to be connected by the digital processes as well as you possibly can.” Even then, he says, it’s still about the people: “If you have the right people doing the right job, then every agency will be at the least risk from the growth (in digital) that is happening.”

Rural Marketing Award Bell Real Estate Yarra Junction

Michael Robinson portrays his small rural agency’s success in the REIV Awards for Excellence as a David and Goliath-style victory. Not only was it sweet success for Bell Real Estate Yarra Junction, it was a victory for the power of niche marketing and social media. When Robinson and his team were signed to sell Shirley Heights, a noted, 157-acre Yarra Valley property with an historic homestead and equestrian centre, they had a marketing budget of less than $10,000. Robinson, the agency director and owner, says that as well as general advertising to pull in rural lifestyle buyers, including online and in the Herald Sun, they carefully targeted their spend. “We had to be very cost-effective; we marketed into equine circles through Horse Deals magazine,” Robinson says. The agency also used Facebook and Twitter to publicise the sale of the Gladysdale property. “It is a passive buyer market on Facebook, but it does spread the word and it is amazing how far it does get spread,” Robinson says. Niche marketing can be extremely effective, he says, “but you have to be 16

The Estate Agent ❘ January 2015

All smiles: Bell Real Estate’s Yarra Junction sales manager Tony Fanfulla (left) and owner/director Michael Robinson.

a little bit careful you don’t target too narrow a market. You don’t want to cut half your market off”. So the agency also targeted cattle buyers through

‘It is a passive buyer market on Facebook, but it does spread the word’ – Michael Robinson publications such as The Weekly Times, rather than focusing solely on the equine niche. Robinson said many Victorians did not know the area so the marketing

needed to target them without costing hundreds of thousands of dollars. The property, auctioned on March 29, sold for $1.7 million to the Pony Club Association of Victoria, after a member saw the Horse Deals advertisement just days before the auction. It was a popular result which drew the most likes ever to the Bell Real Estate Facebook page when posted. “I think it was a very good campaign. We had buyers from around the state looking at the property,” Robinson says. “We will put our award winner logo everywhere.”

Awards

Outstanding Young Agent of the Year Paul Tzamalis, CBRE A university science degree and a sales role with George Weston Foods may seem strange preparation for selling major real estate developments, but Paul Tzamalis says all his jobs since high school were leading to this – though he did not realise it at the time. Tzamalis, 26, joined CBRE in March 2012 and is part of its metro sales team, mainly selling residential development sites and medical and childcare investments. Major sales include the $21 million sale of the Daniel Robertson brickworks site in Nunawading and being part of the team which sold 555 Collins Street to Singapore’s Fragrance Group for $78 million. “We got branding on the building in the city. I could not ask for anything

better than having my name in Collins Street at this early stage of my career,” Tzamalis says.

‘One key thing that is integral in this business ... is that someone you met two years ago could be someone you do business with two years later’ He graduated from Monash University with a pharmacology degree in 2008 – just before the GFC. So he took the George Weston Foods post, then spent five months overseas, returning to join CBRE after having been introduced to the real estate world by friends. “I knew straight away commercial was where I wanted to be,” he says.

“You are dealing with high-calibre clients and the people are very astute; they have built their business and been in businesses for a very long time,” he says. Tzamalis, who spent six months shadowing other agents before transitioning into an active sales role, says his lack of previous property experience is the key to his award: “I came with virtually no property knowledge and committed myself to learning a new skill that was foreign to me. The first two to three years of your property career are very challenging and difficult.” But he applied himself and senior colleagues, who encouraged him to put himself forward for the award, noticed. He also says being genuine, truthful and honest are keys to the relationships he is beginning to build up. “If I was to outline one key thing that is integral to this business, it is that someone you met two years ago could be someone you do business with two years later.”

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Awards

Honoured: Immediate REIV past president Neville Sanders (right) presents Don Brindley with his honorary life membership award.

Honorary Life Membership Don Brindley In the 52 years since Don Brindley began in real estate, he has seen the industry come “a heck of a long way”, with improved training to increase professionalism and strict licensing standards. So he is unimpressed by changes to licensing requirements for some commercial transactions. He takes the same view of the potential diluting of training standards – shorter courses for licensing, for example. “Governments have interfered a lot in the endeavours of professional real estate institutes to try to grow the standards,” he says. “All of these things often signify to me that if they are going to do this for 18

The Estate Agent ❘ January 2015

commercial in 2014, what is going to happen in time to other transactions? Are they going to open it up to anyone to do anything they want to do? Is there going to be a lessening of consumer protection?” Brindley has had an active involvement in the REIV since becoming an affiliate member in 1966 and has served in some of the most

‘If you are not learning, you are going to fall by the wayside; a degree of professional development is critical’ senior roles. He was a director for the decade 1987 to 1997, president in 1990-91 and again from199697. He also served as REIA president from 1996-97. His honorary life membership was awarded for meritorious service to both REIV and the profession. He is a Fellow of the Real Estate

Institute of Australia, a Fellow of the Australian Institute of Company Directors and has served on the Real Estate Council. A qualified valuer, he trained as an auctioneer through the REIV. He also has a postgraduate Diploma in Town and Regional Planning from Melbourne University. Training is critical for the industry, says Brindley. “Any profession or industry you are in, if you are not learning, you are going to fall by the wayside; a degree of professional development is critical.” Brindley began in real estate with JR Buxton, moved to then-Williams and Co and then to Barry Iles and Co for almost a decade where he became a director. Since 1980 he has been involved with his own businesses and, aged 70, still works full-time in Brindley Consulting with his wife Diane, an estate agent with an accounting background. The business operates primarily as a commercial agency, manager and valuer.

Awards

Among the many REIV divisions, chapters and committees Brindley has served is the complaints and disputes committee. During his time as REIV and REIA president, he became involved in this dispute-settling work, increasingly focused on mediation, and now also does private mediation work.

“It’s a good way of solving commercial disputes,” he says. “I think if both parties go into the environment of mediation with a view to settling, in 80 per cent of mediations it will be solved. You have to be willing to compromise.” Brindley says he has enjoyed his

half-century in real estate but realises that these days it would be unusual for someone to stay so long in the profession. It is a job requiring application and irregular hours: “The long hours have not changed in the 50odd years that I have been in the game,” he says.

REIV President’s Award Geoff Sutherland Geoff Sutherland’s auctioneer son, Paul, once tried to count the number of auctions his father had conducted. He stopped when he got to 8000. It’s a staggering total, but consider this context: on January 15, Sutherland will notch 60 years in real estate. The next day he turns 76. He well remembers his first months in the job, delivering letters around the city from the Collins St office of Eric Weaver and Co. “At 16, I was opening houses for inspection. I used to travel around by tram,” he recalls. “There is a vast difference between 1955 and today.” Sutherland went into real estate for experience as a valuer – his father was the Commonwealth Bank’s chief valuer and he intended to follow suit. He qualified as a valuer by 19, working six days a week and attending night school three nights. But after a taste of real estate, he decided it was for him: “The decision I made was the right one – to stay in real estate,” he says. “Real estate can be an exciting industry; I enjoy it, the thrust of real estate.” He conducted his first auction at 20 and recalls conducting one on an Easter Monday, standing on the edge of a Portsea cliff with 1200 people watching. At a Queensland mortgagee auction, he was in a ballroom and auctioned 39 properties in a single afternoon. He says, with some understatement, he is committed to the industry and that his

Recognition: Geoff Sutherland with his 2014 President’s Award for long service. “It was an honour for an old bloke,” the industry veteran said.

wife of 53 years, Wendy, used to joke that she would put a telephone and a dollar sign on his tombstone. He recalls working 90-hour weeks in the early days of his 20 years with Stockdale and Leggo, in which he became a director and partner.

‘I don’t ever remember a day when I did not want to go to work. (Do it again?) Without batting an eyelid’ Now sons Paul and Grant are among the directors of Sutherland Farrelly, the business he began as Sutherland Property in East Melbourne in 1977 and merged with Farrelly Real Estate in 2002. He sold his shares to his sons last year and is now a consultant – but still works four days a week and jokes that he married his wife, “for better or worse, but not for lunch”.

Sutherland has had a career-long involvement with the REIV, having been inaugural secretary of the South-Eastern Branch and its second president. He was also inaugural secretary of the Commercial and Industrial Chapter and became its second president. He set up the novice auctioneers competition and still mentors the finalists. It was this continued service which resulted in the President’s Award, presented by immediate past-president Neville Sanders. “It was an honour for an old bloke,” Sutherland says. The “old bloke” has had only three days sick leave in almost 60 years and says, “I don’t ever remember a day when I did not want to go to work.” So would he do it all again? “Without batting an eyelid.” The Estate Agent ❘ January 2015

Networking

International colleagues get a taste of how Aussies do it World real estate agents share information, business and experiences during Melbourne networking meeting

Stu Morley

hile emails, social media and the internet mean we are more connected than ever, there is no substitute for face-toface meetings. With this in mind, the board of the International Real Estate Federation (FIABCI) met in Melbourne in October. “FIABCI is a network and is all about sharing information and experiences, as well as business, so this was a perfect illustration of that,” says Patricia Delaney, Paris-based FIABCI secretary general. “While much information can be gleaned through calls, emails and the internet, the value of in-person contact cannot be overstated. I think FIABCI members are very cognisant of this fact,” Delaney told EA. “During this visit, board members were able to interact directly with REIV members and FIABCI Australia members about topics that are faced by real estate professionals worldwide. This provides an opportunity for a very rich exchange.” Holding the meeting in Melbourne was in keeping with FIABCI’s mission to provide access and opportunity for real estate professionals interested in gaining knowledge, sharing information and conducting international business with each other. Eleven of the 16 board members, from 10 different countries, came to Australia, home country of FIABCI world president Robyn Waters, who was inducted to that position at its

Leaders: FIABCI world president Robyn Waters and Christopher McGregor, president of the FIABCI Australian chapter

Luxembourg conference in May 2014. She is the first woman and first Victorian to head the organisation and one of only three Australians to do so. As well as attending their meeting, the board had a chance to learn about the Australian and Victorian property markets from REIV chief executive officer Enzo Raimondo. They also attended a networking cocktail function and dinner where they could make contact with local real estate professionals. “This all provided a great opportunity for the two organisations to get to know each other better and to identify areas for further co-operation,” Delaney said. Despite their different home countries, many real estate professionals face the same issues, she said.

‘During the visit, board members were able to interact directly with REIV members and FIABCI Australia members about topics that are faced by real estate professionals worldwide’ – Patricia Delaney, FIABCI 20

The Estate Agent ❘ January 2015

With members in 65 countries, including 100 professional associations, 65 academic institutions and 3000 individual members from all professions of the real estate sector, FIABCI is the world’s most representative real estate industry organisation and holds special consultative status with the Economic and Social Council (ECOSOC) of the United Nations. Waters said FIABCI, founded in France in 1949, had “a rich and vibrant history of bringing together great minds to discuss issues of global importance and to seek solutions to some of our greatest international real estate challenges”. The board members, from the US, Canada, Brazil, UK, Luxembourg, the Netherlands and three Asian countries – Malaysia, Singapore and India – also got out and about for a first-hand Saturday look at Melbourne’s auction system. REIV former president and life member Kevin Sheehan, of Kevin

Networking

Stu Morley

Sheehan Property, was what Delaney calls their “tour guide extraordinaire” as they visited open for inspections and watched two auctions, learning about the logistics, legality and procedures involved. Delaney said many of the board came from countries where auctions are used only for distressed property – the UK, for example. “So it was very interesting to see some highly desirable properties being sold and to understand what was involved.” Part of Waters’ role in her year-long term is overseeing implementation of FIABCI’s new strategic plan. The

Meet and greet: FIABCI international delegates gather at the Melbourne networking meeting (main) where REIV members hosted their international guests.

board’s working sessions “focused on strengthening FIABCI’s strategic plan and its major initiatives including a new web platform and increased education initiatives, specifically related to our successful FIREC (FIABCI International Real Estate Consultant) designation”, she said. The board also planned for FIABCI’s general assembly in Washington, DC in December. Delaney spoke of the “great

hospitality” shown by the REIV, and the board’s enthusiasm for and enjoyment of the visit. Raimondo said the REIV had been thrilled to host the board members and was keen to promote exchange between Australian real estate professionals and those from other countries. “Australia is a principal member of FIABCI and I am thrilled there has been a 50 per cent increase in FIABCI’s Australian membership in the past year,” he said. The Estate Agent ❘ January 2015

Community

Small agencies can make a big difference to homeless REIV Charitable Foundation focuses efforts to support thousands of people struggling to find a place to live

eal estate industry professionals spend much of their working lives with people who have the means to put a roof over their heads. But not all Australians are so lucky. Some can not afford a suitable home or have no home at all. The 2011 census classified more than 100,000 Australians as homeless and more than 75,000 as living marginally, at risk of becoming homeless. Homelessness Australia says that on any night one in 200 Australians are homeless. These are the people the REIV Charitable Foundation is designed to help. The tax-exempt foundation has recently been revitalised with a new five-member board comprised of noted industry figures. The board is chaired by REIV past president Frank Hellier, chief executive officer and director of R Malcolm Pty Ltd, a Fellow of the Real Estate Institute of Australia and an industry professional since 1974. He is excited about the foundation’s potential, saying that while some of the major agencies have their own charitable arm, thousands of smaller agencies do not. So this is a valuable opportunity for them to direct fundraising efforts through an industryorganised foundation. “The point of the foundation is to help charities throughout the community,” he says. “I think it’s important they be associated with housing in some way.” Hellier says the aim is to involve both clients and staff. The foundation, with the slogan “The Heart of the Real Estate Industry”, provides the opportunity to act as good

The Estate Agent ❘ January 2015

Team effort: REIV Charitable Foundation Board members Robyn Cartwright, Kevin Sheehan, Frank Hellier (chairman), Paul Docherty and Geoff Dobson.

community citizens and support worthwhile organisations. Its guidelines point to the altruistic benefits to members through public awareness of

‘There is a lot of goodwill involved and we have a team of experienced and enthusiastic board members, so I believe this will be very successful’ – Frank Hellier their involvement in charitable actions and raising their community profile. Hellier says the foundation can help at a time when many in the Australian community are struggling.

“The foundation has the full support of the real estate industry and the REIV. There is a lot of goodwill involved and we have a team of experienced and enthusiastic board members, so I believe this will be very successful.” Also on the board, which meets monthly, is Geoff Dobson, a former REIV president. The REIV Charitable Foundation was launched in August 2007 during his presidency. Dobson, a former mayor of the City of Greater Shepparton and former REIV board member, is also on community-related boards, including Shepparton’s urban water supply and aged care. New to the board is Robyn

Oc, opo Community

iStock

Cartwright, principal of recruitment service Robyn Cartwright Personnel, which is celebrating its 30th anniversary. Board member Paul Docherty is founder and CEO of leading utilities connection business Direct Connect. He has a background in building and growing businesses – Direct Connect was recently acquired by Snowy Hydro Ltd. Kevin Sheehan, also a Fellow of the Real Estate Institute of Australia, an agent since 1969 and past president of both REIV and REIA, brings valuable continuity to the board, having served on it since the foundation’s start. With donations tax-deductible, Hellier believes there is scope for agencies to hold fundraising activities, enabling even the smallest agency to take part. “Clients may also wish to join their agent or other

property professionals in fundraising or donating. The foundation is not only an opportunity to help those

in need, but for the industry and its clientele to unite for this worthwhile purpose,” Hellier said.

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The Estate Agent ❘ January 2015

Member News

Matt pumps the pedals to help keep hearts pumping REIV vice-president combines a love of cycling with his mission to raise money for research by heart charity Paceline

att Nichols is worried his friends and relations are getting sick of being asked for money. But it’s not about himself – it’s all in a good cause. Nichols, recently elected as REIV vice-president and a past chair of the Members Council, is a long-distance cyclist who loved the freedom that came with his first cycle at 10 – and he hasn’t looked back. He has cycled across Asia and around Tasmania and

regularly pumps the pedals for charity. “I have been raising money for a long time,” he says. “I enjoy cycling and figure if I can raise money for different groups while doing it, I will.” In early November, Nichols and 21 others spent eight days cycling 1300 km around the bay and through north-east Victoria to raise money for heart charity Paceline. It promotes awareness of cardiac arrhythmia – heartbeat irregularity which is the

‘I have been raising money for a long time. I enjoy cycling and figure if I can raise money for different groups while doing it, I will’ – Matt Nichols

On a mission: Matt Nichols promotes good health by riding and raising money for research.

The Estate Agent ❘ January 2015

leading cause of stroke – and raises funds for research. People with atrial fibrillation, a type of arrhythmia which causes the heart to beat fast and irregularly, are up to seven times more likely to have a stroke and three times more likely to have a heart attack than the general population. It is a condition which costs the Australian economy about $1.25 billion a year, according to Paceline. Nichols, principal of commercial and industrial agency Nichols Crowder, as well as Nixon Industrial and 37° Owners Corporation, aimed to raise $4800 (he is still receiving donations) with the overall goal for the ride being $100,000. By the time it set off from Beaumaris on November 7, he had already exceeded $2000. Friends, family and clients opened their wallets to help. The route for the sixth Paceline charity tour, covering about 165km a day, took them to Yea (on day one), Wangaratta, Echuca, Maryborough, Halls Gap, Camperdown and down the Great Ocean Road. For Nichols, 50, a firm believer in work-life balance who rides 50 km a day before breakfast, it’s fun. His eldest son, Jack, 16, has ridden Lake Mountain with him and he makes great friendships on the rides. “I tend to cycle mainly with men, I think it is just wonderful to see middle-aged men out there exercising, talking; it is an opportunity to stay a lot healthier in mind and body,” he says. To donate go to: http://pacelineride2014. gofundraise.com.au/page/Maddogsride4arrhythmias

Member News

Retail rent cause for dispute REIV members are urged to stay on top of developments in the challenging world of retail leasing

Working together: C&I chapter chair Richard Simpson; Small Business Commissioner Geoff Browne; John Corcoran, chair of Russell Kennedy lawyers, and REIV board member Joseph Walton.

ent and outgoings are the most common cause of disputes resulting from retail leases, Small Business Commissioner Geoff Browne told REIV’s retail leasing breakfast seminar. The seminar was organised by the Commercial and Industrial Chapter and its chair, commercial agent Richard Simpson, told EA: “Retail leasing is always a hot topic and it is important that members stay on top of the latest developments.” He said Mr Browne, responsible for implementing the Retail Leases Act and dealing with disputes, had the power

to request a ruling from VCAT to clarify a particular issue. A ruling had been sought on the ability of owners

‘Retail leasing is always a hot topic and it is important that members stay on top of the latest developments’ – Richard Simpson to recover from the tenant the costs of essential safety measures under a retail lease. “The case law is very uncertain,” Mr Simpson said.

After hearings in February, a decision was expected in May. The breakfast at the Kew Golf Club on November 18 was also addressed by John Corcoran, chair of Russell Kennedy Lawyers. A specialist in commercial property, as well as retirement villages and aged care, he briefed the agents present on recent cases relating to retail leasing. Mr Simpson said there was a lively discussion, in particular about security deposits, enforceability of letters of offer and the wording of those letters, subject to whether enforceability was wanted or not. The Estate Agent ❘ January 2015

Member News

Preparing to succeed Future Leaders event aims to help young agents meet the challenges of opening a business

educing the failure rate of new businesses and helping the real estate industry’s future leaders understand the challenges ahead are two of the key aims of the annual Future Leaders event organised by the REIV’s Young Agents Chapter. Chapter head Sam Nokes told EA the sell-out event at the Macquarie Bank boardroom in November was to give those aspiring to industry leadership an insight into what was involved in opening a business or buying equity in a business. “So many businesses fail in their first 12 months – for example, maybe they were underfunded, maybe they were not prepared for the challenges. We want them to know what they are getting themselves into,” he said. “We want the success rate to be higher.” Nokes said the chapter invited a broad array of speakers to demonstrate the many ways a real estate business could operate, from small independents to large franchisees.

Attendees and speakers at the Future Leaders event included, from left, Real Estate Career Developers Anders Simon, director with Bustin Simon Real Estate; Tim McKenzie, Macquarie Bank; Melissa Karajitis, Real Estate Career Developers; Ben Collins, Macquarie Bank; Stacey Mosley, network PR and communications manager with L J Hooker; Rowan Bustin, director with Bustin Simon Real Estate; Sam Nokes, chair of the Young Agents Chapter Committee; Matthew Scafidi, director with Noel Jones Mitcham; Jeremy Rosens, director with Gary Peer and Associates (St Kilda) Pty Ltd; and Robert Ozzimo, director and auctioneer with Harcourts, Epping.

MIXING BUSINESS AND PLEASURE The Business Brokers membership chapter combined festive cheer with an animated fundraiser at Box Hill Golf Club on November 28. Joined by members of the Buyer’s Agents Chapter, the Christmas event attracted more than 90 people and featured AFL great and media personality Warwick Capper who, as Ambassador for the Chatterbox Challenge, spoke of the need for greater support for people with cerebral palsy and their families. The charity auction and raffle raised $9800 for the Chatterbox Challenge. Formal proceedings included changes to the Business Brokers Committee 26

The Estate Agent ❘ January 2015

and the presentation of certificates of appreciation to long-time committee members Robert “John” Hetherington, Ian Wollermann and John Ross for their significant contributions and years of service.

In the spirit: above left, Robert Hurst (left) and Ian Wollermann; above, Warwick Capper (left) and auctioneer Phil de Fegley.

Member News

Car park disputes can back you into a corner ‘Buyer beware’ is not enough to avoid court action if agents are not specific on details. By Nancy Rainbird, Realcover’s Claims Manager

ecently Realcover has seen an increase in the number of claims and notifications relating to the inclusion or otherwise of car spaces on both leasing and sales transactions. In one matter, the sales agent, as per instructions from the vendor, advised the buyer the property included a car space. However, the executed contracts (which supposedly were not read by the parties) did not include a car space. The buyer then threatened to proceed with a damages claim against the vendor and the agent for misleading and deceptive conduct. In another matter, while the agent marketed the property with one car space and sold the property with one car space, there was visual confusion as to which space was the allotted one. The buyer subsequently settled on the property with the vendor, but alleged the sales agent induced him to buy the property on the basis of the car space that was shown to him (the incorrect car space) which had a larger undercover area. Although the basic principle of property law is “caveat emptor” or “buyer beware”, the courts have shown there is no doubt a real estate agent will be liable to any buyer for the loss flowing from a misrepresentation made by the agent. This may be on the basis of the common law, statutory provisions or both, regardless of the fact the contract of sale includes clauses to the effect that the buyer cannot claim compensation for any alleged deficiencies. An agent will not, however, be liable unless it is shown that the buyer actually relied on the representations of the agent. Put simply, it is not enough to rely

‘Put simply, it is not enough to rely on the Contract for Sale provisions as a defence to a claim brought against you. Agents must be vigilant to avoid allegations of misleading and deceptive claims’ on the Contract for Sale provisions as a defence to a claim brought against you. Agents must be vigilant to avoid allegations of misleading and deceptive claims and follow a few simple precautions to avoid a claim such as: z Having the vendor or their solicitor verify the details of the property in writing before the marketing campaign. z In the sale of a strata property, ask the vendor to physically show you the car space if possible.

z Obtain vendor sign-off for all advertisements. z Use disclaimers that are printed in the same font size and included on all documents such as brochures, flyers, signboards and on any online advertising of a property. z Check the sales contract to ensure the detail is consistent with the previous advice from the vendor or their solicitor. z The same care should be taken when leasing a property. The Estate Agent ❘ January 2015

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Obituary

Leading the industry by example Bill Sage was determined to ensure real estate agents were viewed as a responsible group of people doing the right thing

ill Sage, who died in July aged 92, was a real estate pioneer, a man who not only built a career in the Brighton-based agency his father established in the 1920s, but who devoted himself to increasing the professionalism of the industry he loved. President of the REIV (then RESI – The Real Estate and Stock Institute of Victoria) from 1976-77 he served on its board and as a member of the complaints and disputes committee. He was RESI’s nominee on the Estate Agents Board for a decade from its establishment by the Cain Labor Government in January, 1983, was a long-time member of the Multiple Listing Bureau board of management and its chair from 1975-76. When, in 1981, he stood down from RESI’s executive council, its executive director, Brian Robinson, wrote to him: “There is no doubt you have made a most significant and magnificent contribution to the advancement of the institute.” In December, 1993, the REIV presented him with a Certificate of Special Recognition in recognition of his outstanding service to the institute and contribution to the real estate profession. “He had a lifelong dedication to the profession and to making sure that it was clean, clear-cut and transparent,” his youngest daughter, Megan Cullum, told EA. Daughter Joanne Russo said: “Trying to keep the industry honest, that was something that meant so much to him. He did not want people to talk about real estate agents as being shonky, it was very important that it was seen as a responsible group of people doing

WILLIAM (BILL) JOHN SAGE May 3, 1922 – July 29, 2014 the right thing. Brighton-born Sage joined his father’s agency JP Sage after returning from serving with the AIS in New Guinea during World War II. He was joined at JP Sage by his late brother Jim and the pair worked together when their father retired in 1960. Although a small suburban agency, it punched above its weight, not only because of Sage’s involvement in professional organisations but through its involvement in subdivision and the sale of residential land. It was a pioneer in the sale of house and land packages, in particular, the first post-war subdivision of the former Moorabbin market gardens. A 1948 JP Sage ad in The Argus for homes on the Briar Hill estate in

‘Trying to keep the industry honest, that was something that meant so much to him. He did not want people to talk about real estate agents as being shonky’ – Daughter Joanne Russo

Moorabbin offered homes from £1750, deposit £600. The agency developed the Flowerdale estate in Moorabbin, selling plots for £115-£220, the Willowbank estate in Moorabbin and the Arcadia estate in Cheltenham. It was also involved in subdivision in Beaumaris, selling blocks for £1 a square foot. Sage was a talented auctioneer who mentored many young auctioneers and a confident and eloquent public speaker. He was described by family friend Greg Costello, of RT Edgar Brighton, as “a man with a silver tongue” – a description heartily endorsed by both his daughters and long-time friend and REIV trainer Allan Lord. In his 1981 letter, RESI executive director Brian Robinson wrote: “The standard of your eloquence has been unsurpassed in the history of the institute.” Lord said he used to suggest young auctioneers watch Sage in action to learn how it was done. “Watching Bill auction, you were watching a master at work,” he said. He also paid tribute to Sage’s work in mentoring young agents and said he had “a tremendous input into REIV decisions and negotiations with the government”. His auctioneering skills were not only used on behalf of his vendors, but in his charity work. “Dad was constantly giving,” Russo said. “He was generous on all levels.” It was Costello who bought the agency’s property management business when Sage closed his Church St business and worked as a consultant from home. Costello is a thirdgeneration agent and the families were old friends. In November, when the Sage family home in Hampton went under the hammer it was Costello who presided over the auction, ringing Sage’s bell and using his gavel. Sage’s wife of 55 years, Carmen, died in 2006 but he is survived by his five children – Maree, Christine, Michael, Joanne and Megan. The Estate Agent ❘ January 2015

Obituary

Early pain nurtured compassion Surviving a Nazi concentration camp gave real estate legend Frank Jenner a strong sense of humanity and devotion

or 34 years the name Frank Jenner Real Estate was a Highett fixture. The agency, opened by its namesake in 1948, not only served the local community but was a place where locals could drop in and share their troubles with its compassionate owner. But when Jenner arrived in Australia as a teenager in July 1939, fleeing Nazi Germany just two months before the declaration of World War II, the initials on his luggage were KG. Frank Jenner was the name given to Dusseldorf-born, Wuppertal-raised Klaus Gasiorowski by the Jewish Welfare Society to help him blend in to Australian society. From that moment Frank Jenner tried to put the past behind him – a past which included the death of both parents in 1932; being forced, along with other Jewish students, to leave the University of Cologne where he was studying veterinary science; and being taken to Buchenwald concentration camp by truck at 18, after the Kristallnacht wave of anti-Jewish violence in November 1938. “After arriving at the camp, Klaus learned very quickly to stay as strong as possible. He saw that when a man fell down, he was shot,” Rabbi Allison Conyer told more than 150 mourners in her eulogy for him at Bentleigh’s Etz Chayim synagogue. “When the older man standing next to him was growing weaker and about to fall, Klaus held him up. He held him for hours until he could hold him no more. The man fell and was shot.” However Klaus was one of the lucky ones. He had been awarded a place in the Gross-Breesen agricultural school

FRANK JENNER

(Born Klaus Jurgen Gasiorowski)

February 1, 1920 – October 12, 2014 in Breslau, where its founder, Dr Curt Bondy, not only trained Jewish students in farming but was responsible for the release of many to other countries and a new life. Overcrowding in Buchenwald and Dr Bondy’s dedication meant Klaus was one of 24 students awarded travel permits to work overseas in agriculture. They had seven days to leave, or risk being returned to Buchenwald. So he boarded the ship Slamat, bound for Australia. “Growing up, it was forbidden to talk about his past because he had nightmares every day,” says daughter, Roslyn, also a licensed real estate agent,

‘He was a very caring, compassionate man. He had no hatred or bitterness in him. He liked to help people and was very gentle; not wealthy because there were so many people he helped along the way. He used to sit and listen to people’ – Daughter Roslyn Jenner 30

The Estate Agent ❘ January 2015

who worked with her father for 11 years until his retirement in 1982. Jenner was sent to Adelaide where he continued his farm training, learned English and on Saturday nights played the treasured violin he had brought from Germany in a local band. He had grown up surrounded by music – his grandmother was a concert pianist and conductor of the Düsseldorf Philharmonic Orchestra and his mother played piano for opera and orchestras. Two years later, using £10 given to him by the Adelaide synagogue community, he moved to Melbourne and worked at a variety of jobs, including farming, welding, carpet cleaning and – on the weekends to make extra money – real estate. In 1942 he married Australian-born Eileen Joseph, whom he met at the Alma Road synagogue. His refugee status meant she was classified as German and had to apply for Australian naturalisation. Roslyn Jenner says her father, a licensed real estate agent and REIV member, as well as an office holder with the local Chamber of Commerce, was not only a local agent but someone who devoted himself to his community. “He was a very caring, compassionate man. He had no hatred or bitterness in him, even though he lost his family in Germany,” she says. “He liked to help people and was very gentle; not wealthy because there were so many people he helped along the way. He used to sit and listen to people.” After retiring, Jenner devoted himself to community activities including the Highett Bowls Club, Highett Senior Citizens and working for Meals on Wheels. He is survived by his wife Eileen, their four children Pauline, Gary, Bernard and Roslyn, 10 grandchildren and eight great-grandchildren, with two more on the way.