Authorities executed a raid at the premises of Ideal Realty in Perth's south today. (ABC News: Mitchell Edgar)
Western Australia's Consumer Protection agency has raided the offices of a Perth property firm it had initially warned about alleged breaches of conflict of interest laws.
The ABC reported last month the firm's owners allegedly used a shell company to purchase their own client's home without telling him.
It's understood officers are searching for documents related to that 2024 deal.
Authorities in Western Australia have searched the offices of a Perth property firm amid allegations its owners used a shell company to buy their own client's home without telling him.
Ideal Realty, based in the southern suburb of Willetton, was initially issued a warning by the state's consumer protection department for an alleged breach of laws relating to conflicts of interest around the sale of a Kenwick home in 2024.
A Perth real estate agency has been issued a warning for allegedly breaching conflict of interest laws after its agents bought a home that they were hired to sell.
The department today sent officers to execute a warrant at the company and the ABC understands the raid was aimed at scrutinising documents related to that deal.
The ABC has previously reported that two years ago, Ideal Realty was hired to sell the home of Perth man Chao "Jack" Wu.
After six days on the market Mr Wu said he received three offers, the highest of which was from a company called "Generation Two".
Mr Wu alleged that it was only after he accepted a final offer from this company that he learned that it was owned by two licensees of Ideal Realty — Roy Li and Lynn Ting, whose legal names are Liang Li and Lin Ding.
Roy Li of Ideal Realty conducted the sale. (ABC News: Gian De Poloni)
He said he proceeded with the sale because he feared that, as he had already signed the sale contract, he would be liable for damages.
Mr Li has denied misleading his client, and said he told Mr Wu before making the offer that he and his partner were the true buyers.
However, Mr Li has conceded that he failed to ensure Mr Wu signed a legally required written disclosure form acknowledging his interest in the transaction.
