Purplebricks claimed to be at centre of continuing investigation by Australian authorities

Purplebricks is said to be at the centre of a continuing probe by authorities in Australia.

An unnamed former agent with Purplebricks has told The Australian Financial Review that he was grilled for 90 minutes by Western Australia’s state consumer regulator over “suspected contraventions”.

The publication has claimed that there is a joint investigation into the “British disruptor after it was slapped with a $20,000 fine by the Queensland Office of Fair Trading in March”.

According to the agent who says he was interviewed by investigators as part of the alleged review: “They had copies of all of the agreements with many specifically highlighted paragraphs.”

He said the question of deferred payment was the hottest issue, according to the publication.

He also claimed that “it would seem entirely possible that anyone who has used Purplebricks, whether they sold or not, could actually be entitled to a refund”.

A spokesperson for Purplebricks Australia said it had fully engaged with regulators and would continue to do so.

The Australian Financial Review also says it understands that Purplebricks Australia is reviewing its business model, with co-founder Kenny Bruce taking a leading role.

https://www.afr.com/real-estate/residential/purplebricks-agent-grilled-by-wa-authorities-over-suspected-contraventions-20180906-h150x9

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13 Comments

  1. Chris Wood

    Dom, Dom, Dom, Dom, dom…?

    Ducky, Ducky, Ducky, Ducky…?

    Echo, echo, Echo, echo…!

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    1. cyberduck46

      The same Purplebricks agent said that following his meeting with DMIRS, a DMIRS investigator advised that numerous sections of Purplebricks’s Exclusive Selling Appointment of Agent forms that he voluntarily provided for scrutiny had been filled in incorrectly.

      “It would seem entirely possible that anyone who has used Purplebricks, whether they sold or not, could actually be entitled to a refund due to incorrectly filled out listing forms, which were all done in the manner Purplebricks instructed all the agents to do them,” the Purplebricks agent said.

      So just the Ex Western Australia LPEs opinion that customers have a claim. You really can’t imagine anybody who has sold claiming.

      https://www.realestate.com.au/agency/purplebricks-western-australia-HXXOVB

      662 properties sold & 347 for sale.

       

       

       

       

       

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      1. Chris Wood

        If that is the best argument you can make, it suggests that you know that the end game is now in sight.
        More damning News to come from whistleblowers in Oz and the UK and, I suspect, the USA in the coming days and weeks.

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        1. Chris Wood

          Noted that you have completely edited your first response out of existence.

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      2. AgentQ73

        Absolutely you never hear of anyone claiming if they feel they have been sold anything incorrectly or if there is an opportunity to get some money back

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        1. Bless You

          Where is my Sarah Sanders , trumps press secretary giff for Dom…

           

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      3. Property Pundit

        That’s all well and good but if they have estimated group revenue then they must have an estimate for UK revenue so why haven’t they given it? Personally I see it being harder to be successful overseas than here in the UK and the lack of clarity over what the company expect from the UK is something that puts me off investing. Saying they expect a 10% market share in the UK in the medium term means very little because their estimates going forward just 6 months were missed by a mile and what exactly does “medium term” mean?

        One for the brave.’

        Top share tipster Ducky over on lse.co.uk Tuesday just gone. The penny seems to have dropped.

         

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        1. Room101

          Yes, saw that yesterday too Property Pundit and from another post –

          Dompritch – You were number two, Cyberduck was number one.  Cyberduck lost it—turned in his wings.  You are number one…

          ONE FOR THE BRAVE!

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  2. ArthurHouse02

    It is warming to hear that the authorities in Australia are doing their job and looking thoroughly into what many many many people feel is a questionable business model. The crying shame is that regulators in the UK as with many big business have chosen to turn a blind eye to this.

    With many many many Purplebricks vendors not selling their home imagine how catastrophic it would be if PB had to pay back the money, that many vendors feel was obtained by not fully explaining their liabilities.

    The amount of PB vendors i have spoken to who tell me they didnt know they had to pay if the property didnt sell is amazing.

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  3. Mark Walker

    Almost hit my 250p alert.

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    1. Property Paddy

      Christmas is coming the goose isn’t nearly as fat as I was promised.

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  4. GeorgeOrwell

    Nicely timed for PB Australia COO. Just needs the helmet & flak jacket option as a follow up.

    Just a coincidence, with all the Hooo Haaah! landing on his corporate doorstep.

     
    “Purplebricks Group plc (AIM: PURP), the hybrid estate agent providing a new way to buy, sell or let property, announces that on 2 August 2018 options to subscribe for an aggregate 500,000 ordinary shares of £0.01p each in the Company (“Ordinary Shares” and the “Options”) were granted to certain persons discharging managerial responsibilities.  
    Neil Tavender, Chief Operating Officer – Australia, has been granted 500,000 Options.  The Options have been granted under the Employee Share Option Plan and have an exercise price of £2.87, being the closing price of shares at 1 August 2018.”

     

     

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  5. paulnewboy26

    I love this PB lot.

    Just has a customer come to us having seen we sold two just round from him and he thought he would go with PB as it;s cheap and must be able to sell his quick……..wrong!

    No viewing in 45 days, description was wrong on RM and a few other things we corrected which I wont make public..

    Guess what, two viewings from people we had spoken to properly, listen to their needs, sold the features (and there were a few), and bob’s your uncle, full asking price in 3 days.

    I have asked the customer to “rate” his experience with PB and see what happens…….

    I just cant decide who is easier to take listing off, CW or PB at the moment???

    Report
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