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David and Goliath battle looms in real estate industry
David and Goliath battle looms in real estate industry
A huge multi-national company is attempting to brutally mug a thriving, innovative company run by husband and wife team Michael and Morag Atwell this week.
Prahran,
VIC,
Australia
(prbd.net)
14/03/2011
A huge multi-national company is attempting to brutally mug a thriving, innovative company run by husband and wife team Michael and Morag Atwell this week.
The Atwell’s started their online real estate company in Melbourne two years ago. Both licenced real estate agents, they provide to homeowners wishing to sell their houses a very cost effective service that is not based on the traditional commission system. All of the usual agents services are offered, but importantly these homeowners conduct their own open house inspections.
The Atwell’s company, ForSaleForLease.com.au, advertises it’s clients’ properties on the largest website available to real estate agents in Australia - Realestate.com.au. This website, which boasts of being nineteen times the size of it’s closest rivals combined, generates 90% of the Atwell’s business. It is owned by News Ltd. and is part of Rupert Murdoch’s burgeoning empire.
In a ruthless move a week ago, Realestate.com.au cancelled the subscription renewal notice already received by the Atwells and informed them that their business would no longer be accepted to advertise on the site after 31st March. The grounds for cancellation are cited as breach of contract.
In a letter dated 4th. March Katherine Briggs, legal counsel for Realestate.com.au. states: “realestate.com.au has made this decision in the ordinary course of enforcing it’s terms and conditions”. Use of the word “enforcing” is very relevant.
The Atwells do not agree that they have contravened the rules and have referred their case to the ACCC.
Meanwhile Realestate.com have also cancelled the subscriptions of a number of similar companies, notably ByMyPlace.com.au and Property Now. It is argued that the Murdoch-owned company is using it’s dominant position to force changes in the way that real estate is sold in Australia, changes that will potentially cost homeowners a great deal more money.
Two powerful real estate moguls, Sam White of the Ray White group and John McGrath sit on the board of Realestate.com.au. They have a vested interest in preventing streamlined and innovative companies like ForSaleForLease , ByMyPlace and Property Now gaining a foothold in the market, a market where agents spend vast amounts of their clients’ money advertising their listings in newspapers and publications owned by Rupert Murdoch. And there’s the rub.
Presently, more than a thousand homeowners have their private sale real estate listed with the threatened companies. This includes businesses for sale and commercial property ( http://forsaleforlease.com.au/commercial/ ) . These Australians will be severely disadvantaged by Realestate.com.au’s enforcement action and many may lose money and potential buyers. And the hardworking Atwell family will be broken and bankrupt. It doesn’t seem fair, does it?
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Presently, more than a thousand homeowners have their private sale real estate listed with the threatened companies. This includes businesses for sale and commercial property. These Australians will be severely disadvantaged by Realestate.com.au’s enforcement action and many may lose money and potential buyers.
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