ERA: Price fixing?

Judge slams unethical agents who 'flip' properties for profit

'When a property agent is engaged to sell or buy property, he has a responsibility to act in the interests of the person who appointed him - not his own, or his friends', or his relatives' or his boss', said the judge. 'This responsibility that the agent bears is the foundation of the ethical rules and contractual principles that prohibit an agent from acting in conflict of interests and reaping secret profits for himself or his friends.'

Two ERA agents were slammed by High Court Judge Choo Han Teck for their unethical behaviour in the transaction of a two-bedroom downtown flat.


Mr Yuen Chow Hin, an IT company vice-president, and his wife, Madam Wong Wai Fan, a housewife, had let go of their two-bedroom downtown flat at $688,000. They took their ERA agent's word that this was the best price they could get.

What they did not know was that the buyer of their Riverside Piazza unit was the wife of their agent's boss, and that she re-sold it almost immediately for $945,000, making a hefty profit.

On Thursday, Justice Choo ruled in favour of the Yuens, who had sued ERA for the 'secret profit' made in the second deal.

The judge found that the conduct of agent Jeremy Ang and his boss, Mr Mike Parikh, senior group division director at ERA, amounted to breach of duty and fraud. He also had a stern reminder for the industry of its ethical responsibilities, as it had emerged in court that such practices were common.

The judge concluded that it was Mr Parikh who wanted to buy the flat in order to make a quick profit during the property boom. To distance himself from the deal, he used his wife, Madam Natassha Sadiq, as the buyer and Mr Ang as the seller's agent, the judge found.

Mr Ang was the link but Mr Parikh was the person behind the scheme, and his position made his subordinate's breach of contract even more reprehensible. The misconduct was of such magnitude that the judge said he felt bound to make the reasons clear in his judgment so that no property agent could now claim ignorance.

commments:

Mr Ang, an ERA agent used the brand name, ERA to secure trust from his clients, Mr. and Mrs Yuen, who believed in him in selling their house.

but he abused their trust by telling them the lies that their house was not thta good and let his boss and him earned a tidy profit and commission.

that showed how truth the man's is, under every circumstances.

in the end, he has all to lose and nothing to win.

Trust no more.