RESTITUTIO IN INTEGRUM

If only all spruikers would do this.

by Neil Jenman

Anyone who meets 38-year-old truckie, Robert Kirkbride, is likely to use two words to describe him – 'good bloke'.

Unfortunately, like many good blokes, Robert has a weakness. He's too trusting. And that makes him easy to rip-off. Honestly, you could sell Robert almost anything.

Eighteen months ago life looked good for Robert. After years of hard slog, he'd almost paid off his family home. He was looking forward to spending more time with his wife and five children.

But then Robert Kirkbride met a man who is probably Australia's biggest property spruiker.

Last week Robert was a million dollars in debt and about to lose his family home.

So, what happened?

Well, back in July 2005, the spruiker talked Robert into buying two investment units for $830,000 ($425,000 for one and $405,000 for another).

With expenses, the total cost of the two units was around $870,000. It was all about "tax savings".

The spruiker organised a 'Lo Doc' loan for $980,000 – enough to pay for the units plus costs plus pay off Robert's home. Robert had no idea what was going on. In his words, "I am an illiterate, so I just do my best".

He trusted the spruiker and so he signed all the documents.

Robert's repayments were almost $6,000 a month. His income as a truck driver was $4,000 per month.

Robert might be too trusting and he might be illiterate but he can count. "I knew I was in trouble from the first month," he said. With the apartments rented for just $300 a week each, Robert was wiped out. Even with his entire salary he had no money for payments and food for his family.

Robert says the spruiker had told him that real estate was wonderful because, "If things go bad, you just sell."

So Robert rang the spruiker and said, "Sell. Fast."

Nothing happened. It was not possible to find a buyer to even remotely cover what Robert had paid.

Slowly, inexorably, the payments fell behind.

And then it was D-Day.

According to a local agent, Robert and his wife will be lucky to clear $250,000 for each apartment. With expenses, their total losses will be around $400,000 which, coincidentally, happens to be about the value of their family home. They are being kicked out and sold up.

For Robert Kirkbride, 2007 was shaping up as the worst year of his life. A good bloke was about to lose his family home.

Until we called the spruiker.

Last Friday, in the lobby of a Sydney hotel, I spent three hours with the man who is probably Australia's biggest property spruiker. To prove that he's not a rorter, the spruiker offered to buy back Robert Kirkbride's two apartments at the price Robert paid for them. Plus, the spruiker agreed to cover all Robert's expenses.

In summary, the spruiker is prepared to follow the Latin legal principle of 'restitutio in integrum' which means that everything will go back to the way it was before Robert met the spruiker.

Very impressive.

If only all spruikers would do the same.

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Footnote: Unlike most stories on this site, we have chosen not to reveal the name of this spruiker.

And, no, it's not because he may send his lawyers after us (or thugs, as he has reportedly done in the past).

It's because this spruiker has promised us that if there are any other investors in a similar position he will make the same offer – buy back the properties and cover their losses. We like that deal.

When consumers approach us with legitimate complaints our first aim is always to try and help the consumers to get their money back. Our next aim is to warn other consumers about the methods of the offending spruikers.

But, when a spruiker says to us, "Please do not damage our business by writing articles about us. This incident is a rarity. We have many happy investors and if there are any unhappy investors, tell us and we will sort it out and make them happy," we feel we should wait and see if the spruiker really does 'walk his talk'.

It will be wonderful for Robert and his wife to save their family home.

So, if you have a complaint about any property spruiker or company, contact us and we will see if we can get the spruiker to use the principle of 'RESTITUTIO IN INTEGRUM'.