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kmslaw, Solicitor
Category: Australia Law
Satisfied Customers: 209
Experience:  I have 15 years legal experience behind me and I graduated from the University of Sydney with First Class Honours in Arts/Law.
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I have a very difficult situation and feel stuck without any

Customer Question

I have a very difficult situation and feel stuck without any recourse available to me.
Through a Real Estate Company I was cohersed into buying 5 houses and two land lots. I have since discovered that I paid well over the market price for each house and even today I could not sell any of them and recoup the capital I put into each of the properties.
I was told that by spending $20K on a real estate course that I would be able to make money in real estate investing. I tried their system and worked very hard on it for 18 months but it proved too difficult to get deals over the line.
Where do I stand in relation to the over priced real estate they sold me which I bought in good faith? The houses are not even worth loans they arranged against each property. I cannot afford legal fees but this company are making a lot of money out of people like me doing what they are doing.
Each houses was sold with the clear understanding they were already rehabbed which was not true.
I have spent well over $15K rehabbing houses because I had to and seem to have not recourse on the seller, who is a successful real estate company working out of Utah.
They have got to be stopped and I want my hard earned money returned to me as I was lied to and totally deceived by all their claims.
Submitted: 1 year ago.
Category: Australia Law
Customer: replied 1 year ago.
I am an Australian whi stupidly trusted this company and bought real estate in the USA.
Expert:  kmslaw replied 1 year ago.

Hello my name is ***** ***** I am going to help you today. I am a NSW solicitor.

What you first need to do is to establish which company or entity has made representations to you that you have relied upon to your detriment. If the company is Australian and has assets in Australia (which you can check through doing a credit, property and annual report check) then you should sue them in Australia for negligent misrepresentation or breach of the Australian Consumer Law. Which one is best to sue under is not immediately apparent to me without all of the facts and further research that needs to be done. But you will need to make a comprehensive list from your memory, diary and emails and other evidence of what representations were made to you about the property and when and how (i.e. who verbally said them or what advertisement did you see that stated them). Your representations will be, for eg., "that the residential property I purchased at 10 Lowy Place Utah was worth $1 million and would likely increase in value by 10% over 5 years" or something. You need to be specific about what was represented to you and what failed to materialise or be realised. Gather written and pictorial evidence about how and why the representations failed to become true. Consider whether you totally relied on the representations or whether other factors came into play that you also partly relied upon and record this. Then go and get some advice from a lawyer about the prospects of success of your claim. That is something beyond the scope of this website as we only give general advice. You don't have to feel trapped, you can take action on this.

If the company is a company in the USA and has assets in the USA, you are best to speak to a United States lawyer in the State of where you are either living, where the company is or where the properties are situated. Those lawyers should be able to advise you on the laws of the State in particular and whether other State laws will have an impact on your claim. I do not know whether they have a similar law in the United States for negligent misrepresentation or breach of a consumer law. However another possibility is that you obtain a judgement in Australia against the company and have it registered in a Court in the State of the United States where you will get the best outcome of enforcement. Again, a United States State lawyer can help you with that.

I wish you all the best and hope that you are able to secure a favourable outcome. If you carry out the first exercises I have described, you can test for yourself the strength of the evidence you have to mount against the company and how much the value of your losses are.

I hope I have helped you today. If so, please rate me positively. All the best.