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🇦🇺 Australia /Crime & Justice

When Jack put his home up for sale, he didn't think his agent would be the buyer

From ABC Australia · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Under investigation
  • A Perth real estate agency, Ideal Realty WA, has been reprimanded for allegedly using a shell company to buy a property it was hired to sell.
  • Homeowner Jack Wu believes he sold his Kenwick property for nearly $100,000 less than its market value.
  • Real estate agents Roy Li and Lynn Ding deny failing to disclose their role as buyers and dispute the valuation.

A Perth real estate agency, Ideal Realty WA, faces reprimand from consumer authorities over allegations it orchestrated a "ghost" home open and used a shell company to purchase a property it was hired to sell. The homeowner, Chao "Jack" Wu, believes this process led to him selling his Kenwick home for approximately $100,000 less than its actual worth.

The buyer is almost a cash offer, we recommend to accept the offer and get it secure, or the buyer will offer another property.

— Lynn DingEmail sent to homeowner Jack Wu regarding an offer on his property.

Wu, who moved to Perth from China in 2020, had invested significantly in the 1970s brick and tile property, renovating the driveway and adding a granny flat. In April 2024, he signed an exclusive sales agreement with Ideal Realty WA. Six days later, he received an email from agent Lynn Ding, copying agent Roy Li, stating three offers had been received, with the highest from a company named Generation Two PTY LTD.

The buyer has no finance issue and we can accept it or the buyer will offer others after compared.

— Roy LiText message sent to homeowner Jack Wu about a property offer.

Ding recommended accepting the offer, describing it as "almost a cash offer." Li further assured Wu via text messages that the buyer had no finance issues and that they would "do the best to deal with the buyers." Wu accepted the offer that afternoon after a counter-offer. However, weeks later, he felt uneasy about an adjustment to the buyer's name on the contract. His subsequent investigation revealed that Generation Two PTY LTD was owned by agents Li and Ding. Corporate documents showed the company was established and registered at Ideal Realty WA's office address on the same day Wu's offer was made.

Will do the best to deal with the buyers. No worries.

— Roy LiText message sent to homeowner Jack Wu assuring him about the negotiation.

Li and Ding deny failing to disclose their identity as the buyers and dispute Wu's claim that the property was undervalued. They also dispute that the company was listed at a different, residential address, which was Li's postal address, on the sale contract.

Not easy to hold the buyers too long :)

— Roy LiText message sent to homeowner Jack Wu indicating urgency in the sale process.
DistantNews Editorial

Originally published by ABC Australia. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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