PHOTO: Saahil Gupta, the founder and managing director of The Eleet. CREDIT: FACEBOOK
Late one afternoon, Doug Schoer, who was occupied caring for his wife suffering from dementia, found himself facing an unexpected visitor at his doorstep. This unexpected guest was a sharply dressed real estate agent with a proposition: he claimed he could assist Doug’s family in securing an excellent deal for their land in the vicinity.
The 86-year-old soon became uneasy; the agent appeared to be in a rush to close a sale. Nevertheless, Doug agreed to schedule a meeting with his family the following week. According to court records, during this meeting, the agent asserted that he was in negotiations with a potential buyer interested in purchasing all of the family’s properties together.
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Using a mobile printer from his car, the agent generated a “heads of agreement” outlining a proposed deal. The family, residents of Traralgon in Victoria’s Latrobe Valley, alleged that the agent insisted this document was non-binding and merely a negotiating tool for him with potential buyers. A buyer’s name was added to the document in the days after their signatures were affixed. Initially, the family felt they had secured a favorable deal, but over time, they began to suspect that something was amiss.
“At first, there was a sense of jubilation, but within a few weeks, I became suspicious,” stated Ashley Schoer, Doug’s son. The family’s concerns about the buyer’s credentials grew, and they decided against proceeding with the sale.
Several disputes related to these events ended up in court. Two out of three cases were settled before trial, and The Eleet, the real estate agency in question, denied any wrongdoing. Consumer Affairs Victoria confirmed an investigation into the actions of VSS Real Estate (The Eleet’s trading name) following the Schoer family’s allegations.
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This situation comes in the wake of previous reports, including by this news outlet, highlighting concerns about land flipping and speculation in rapidly growing areas on the outskirts of Melbourne. However, the Schoers raise questions about the effectiveness of regulatory oversight, as Consumer Affairs Victoria took months to respond to their concerns.
Ashley Schoer expressed his frustration, saying, “It’s put a significant amount of stress on myself, not only that the transaction turned bad, but also the fact that for months the regulator wasn’t interested, REIV [Real Estate Institute of Victoria] wasn’t interested, and I didn’t know who to turn to.”
The Eleet real estate agency, which maintains offices in Truganina, Point Cook, and Epping, touts billions of dollars in sales across Victoria and employs dozens of well-dressed agents. The agency’s owners drive Ferraris, and they even own a horse racing team.
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Court documents reveal that the company has faced allegations of misleading and deceptive conduct in multiple court cases in Victoria.
In a recent case, two companies owned by Korean businessmen sued The Eleet, its founder and managing director Saahil Gupta, and a company called Lead Developments. The plaintiffs claimed they owned land in Shepparton and had engaged The Eleet agents to offer the land for sale at a stipulated price of $6 million, with a clause allowing them to retain three blocks from a future subdivision. They signed a “heads of agreement,” but alleged that during subsequent discussions at Sydney’s Club Auburn, an agreement was reached to increase the sale price to $8 million.
The Eleet was accused of then presenting the old heads of agreement, which stated the $6 million price, to a buyer and backdating it. The buyer, a company named Lead Developments, argued that this constituted a binding contract for the purchase of the land.
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The Eleet and Lead Developments faced allegations of fraud, misleading conduct, and deceptive behavior in violation of Australian consumer law.
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