PHOTO: ⚖️ Tribunal warns conduct risks bringing the real estate industry into disrepute. PROPRTY NOISE.
🏠 Cut-Price Sale Sparks Tribunal Action
An Australian real estate agent has had her licence suspended for 12 months after purchasing the home of a vulnerable 82-year-old man for hundreds of thousands of dollars below market value, despite claiming she believed she was doing “the right thing”.
The decision was handed down by the New South Wales Civil and Administrative Tribunal, following an appeal by the agent to overturn disciplinary action imposed by NSW Fair Trading.
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👩💼 Agent Bought Client’s Home at “Significant Undervalue”
The tribunal heard that Rachelle Carmen Nohra, director of Eser Property, purchased the Sydney home of the elderly man — referred to as Mr A for legal reasons — in April 2023.
Key findings included:
🏷️ Purchase price: $A600,000 (approx. NZ$680,000)
🏘️ Comparable sale next door: $A1.1 million
💰 Estimated windfall gain: ~$A500,000
The tribunal ruled the property was acquired at a “significant undervalue”.
🧓 Vulnerability a Central Issue
The tribunal found the retiree:
Was 82 years old
Had alcohol dependency issues
Showed symptoms consistent with Alzheimer’s disease
Was vulnerable to exploitation
Despite this, Ms Nohra did not ensure the man received independent financial or legal advice before the sale.
📄 Promise to Stay — But Lease Said Otherwise
Ms Nohra told the retiree he could remain living in the property for the rest of his life.
However, the tribunal found the tenancy agreement told a very different story.
The lease allowed:
❌ Eviction with 90 days’ notice
❌ No long-term security of tenure
❌ No formal lifetime occupancy protection
This contradiction was a key factor in the ruling.
⚖️ Tribunal: “Lack of Insight Is of Serious Concern”
Senior tribunal member Lachlan Bryant was highly critical of the agent’s conduct.
“Her lack of insight into such basic matters is of serious concern to the tribunal.”
He found Ms Nohra failed to recognise the conflict between her personal interests and her professional duties, particularly given the vulnerability of the seller.
💸 Appeal to Overturn Penalty Fails
Ms Nohra had appealed disciplinary action taken by the NSW Fair Trading, which included:
⏳ 12-month licence suspension
💵 $A11,000 fine
📚 Mandatory additional training
She argued she remained a “fit and proper person” to hold a real estate licence.
The tribunal rejected that argument.
🚫 Conduct “Closely Connected” to Her Profession
The tribunal ruled that although the purchase was made in a personal capacity, it was closely connected to her role as a licensed real estate agent.
“The applicant stood to gain a windfall… and was enriched to the retiree’s detriment.”
The conduct, Mr Bryant said, fell short of community expectations and risked bringing the real estate industry into disrepute.
⚠️ Industry Reputation at Risk
The decision emphasised that real estate professionals are held to higher ethical standards, particularly when dealing with:
Elderly clients
Vulnerable individuals
Off-market or private transactions
“Her belief that purchasing the property in the circumstances was the right thing to do is of serious concern,” the tribunal stated.
🟡 Licence Not Cancelled — Tribunal Draws the Line
While NSW Fair Trading sought harsher penalties — including licence cancellation and a three-year industry ban — the tribunal declined.
Such punishment was deemed “too harsh”, with the 12-month suspension considered sufficient.
🧠 The Bigger Picture
This case sends a strong warning across the Australian real estate industry:
📌 Agents must avoid any conflict of interest
📌 Vulnerable sellers require extra protections
📌 Verbal assurances mean nothing without legal backing
📌 “Good intentions” do not excuse unethical outcomes