A lot of people contacted me about the letter they received from Deloitte.
I thought deeply about its meaning.
I see here that Deloitte has been appointed by Wingate as the receivers of Arncliffe.
Now they are asking for a number of documents from you: a. A copy of contract for sale. b. Bank statements that recorded the payment of deposits. c. Evidence that the deposit was actually paid. d. Copy of the agreement with William O’Dwyers
Now it is clear to me that Deloitte is considering what is the status so far as the pre-sales are concerned. Deloitte are receivers for Wingate.
Wingate stands to lose the most if Arncliffe is not finished promptly.
As I said earlier video it will not be Grant Thornton who completes Arncliffe it will be Wingate. When they finish they are going to want to sell all the units to get their money back.
Normally that would be a simple matter of calling for the pre-sales to complete. The receiver does not have to honour the developer’s pre-sale contracts. They have a choice. They can settle the pre-sales, or they can sell on the open market.
What decides the matter is how can they get the most money. If the pre-sale is above the market value they will settle the pre-sale. If the pre-sale is below market value they will sell on the open market.
What’s happening now is that Deloitte is trying to work out which units they will settle and which pre-sales they will abandon. It all comes down to how much money they can make.
If you bought your property in 2014 the market has gone up. If you bought your property in 2018 the market has gone down. However the question is more complex in Ralan’s case. The reason is because of the released deposits.
I have here are copies of one of the release deposit contracts. Unlike the Ruby development and Sapphire development the Arncliffe the deposit was released to the developer who owned the property.
That means if Deloitte want to settle the pre-sales they must apply the deposits. They cannot force you to pay the deposit twice.
The reason is they do not have contract with you. Ralan Arncliffe has a contract with you. They can use that contract to force you to settle but they much credit you the deposits.
So they are doing their sums. What they want to do is find out how much they are going to get from the units if they credit for the released deposits and then compare that to the price they will get on the open market.
My guess is that in most cases they are going to sell on the open market. If the property market drops severely, between now and when they go to settle, which is in May or June in 2020, then they may settle more pre-sales.
If your unit is chosen for settlement that is good for you, that means your deposit was not stolen. And effectively you get your deposit back. However it means you paid too much for your unit because it is under the open market value.
It is unusual that the receiver would be asking you all these questions and asking for all these documents. Normally they would just get the information from the company records. However to their surprise they have found fraudulent documents.
A large number of you have contacted with me to say that you loaned money to Ralan without buying a unit. However Ralan gave you paper work that pretended to sell you a unit. You then took this debt to the administrator.
As a result on some units there may be two sets of released deposits. Eventually they will work out which one is the genuine one and then go from there.
I would recommended that no one would send them documents at this stage. This is a serious document. Sending what they request could affect your rights. You need legal advice.
Bransgroves Lawyers is prepared to act for you. We will write to Deloitte on your behalf. We will make sure your interests are protected. We will charge you one dollar.
And after all of this over you have to buy me a Chinese meal, and Vivienne.
We will put a retainer agreement up on the WeChat to explain this. That is all I have to say about Arncliffe at this stage other than to point out the time is on your side.
It will be many months before the development is completed. So no one has to make any decisions or do anything quickly.
I would like to at this time thank everybody who have been sending me information.
Every bit of documentation helps me to build up the picture of what’s going on.
As I have said in the previous videos, this business of lending to Ralan and getting a document that pretends to be a pre-sale is the key to this case.
I think it hints that Ralan was showing these documents to Westpac and Wingate in order to trick them. That is what developers normally do with fraudulent pre-sales. They used false pre-sales to convince lenders to lend.
However normally there is money in trust account to prove the pre-sale is genuine. However we all know Ralan spent the money. It was not in the trust account.
So how did Westpac and Wingate not notice this missing money? My suspicion is Ralan actually told Westpac and Wingate the deposits were being released. If I can prove that we will win the case and you can get your money back.
Anyone who knows anything about this please let me have the information.
Even if you don’t have all the information I can put all the peices together to give the full picture.