A Sydney real estate agent has been suspended and fined after purchasing the home of an elderly man with Alzheimer’s symptoms for nearly half its true value.
The NSW Civil and Administrative Tribunal found that Eser Property director, Rachelle Carmen Nohra, bought the man’s home in April 2023 for $600,000, despite knowing a neighbouring property had sold just one month earlier for $1.1 million.
The 82-year-old retiree, identified only as Mr A for legal reasons, lived alone and was experiencing both alcohol problems and cognitive decline. He agreed to sell his home to Nohra on the condition he could remain there for life. However, the tenancy agreement she later arranged allowed him to be evicted with only 90 days’ notice.
Tribunal senior member Lachlan Bryant said the man was “isolated and vulnerable” and relied heavily on Nohra, who at the time also held power of attorney over his financial affairs. He found the retiree lacked the mental capacity to make a fair decision about the sale of his home.
“Her belief that purchasing the property in these circumstances was the right thing to do is of serious concern,” Mr Bryant wrote in his judgment. “Her conduct may put the real estate industry into disrepute and falls short of the community’s expectations of a licence holder.”
The tribunal concluded that Nohra stood to gain a financial windfall of about $500,000 at the expense of the retiree. Despite her claim that she acted appropriately, the tribunal found she had failed to ensure he received independent legal or financial advice before the sale.
As a result, Nohra’s real estate licence has been suspended for 12 months, and she has been fined $11,000. She has also been ordered to undertake further professional training.
Fair Trading had sought a harsher penalty, including the cancellation of her licence and a three-year ban, but the tribunal determined that would be excessive.
The case has drawn criticism from consumer advocates, who say it highlights the risks faced by elderly and vulnerable homeowners in the property market. Advocates argue that stronger safeguards are needed to ensure those living with dementia and other health conditions are protected from financial exploitation.
It’s great timing that you have highlighted this story . Sadly this has been happening for to long with other circumstances of family , community members doing similar with farming properties, homes and even businesses in our rural, regional and remote areas. Hearing a story right now (anonymous) who is very wealthy , very unwell with vultures circling from all angels even with Tradespeople ripping him off . His greatest fear with his decline is that he will be become so frail and unwell that he will give in to their abuse and coercion. He himself said the laws are not there in the case of the crime you have just highlighted .The penalty from this real estates crime is not good enough . This is not a deterrent to stop others from doing it , particularly if they are lucky not to be caught. This man has said we need strategies in place of how we can protect people in his situation and national laws . There are to many stories and we need to stamp our feet and campaign for change with our national leaders and politicians .
NSW Civil and Administrative Tribunal needs to be reviewed after this grossly inadequate decision. The agent gets to keep the profit, her job and the elderly man is evicted. Perhaps it’s time for the Tribunal to reflect upon their complete lack of connection with world !
What a deplorable act. What about elder abuse!
Sounds like she got off light and was able to retain the property.
Poor innocent guy to be treated this way by an absolute horrible human being.
AND she had POA.
!!!
This is a disgrace her licence should have been suspended indefinitely as she still gains financially from exploiting this gentleman. Like, who was the house sold to? and why is the fine so minimal?
This is nothing short of Elder Abuse…there should be criminal charges laid.