Consumer Protection Commissioner Trish Blake confirmed that investigators executed a warrant at the offices of Ideal Realty, a property firm based in Perth's southern suburb of Willetton. The ABC understands the raid was aimed at scrutinising documents related to the 2024 sale of a Kenwick home.
The department had previously issued a warning to the agency over an alleged breach of laws relating to conflicts of interest. Blake said new evidence had allowed the case to be reopened.
The allegations centre on the sale of the home of Perth man Chao "Jack" Wu. According to Mr Wu, he hired Ideal Realty to sell his property two years ago. After six days on the market, he received three offers, with the highest coming from a company called Generation Two. Mr Wu alleges it was only after he accepted the offer that he discovered Generation Two was owned by two licensees of Ideal Realty — Roy Li and Lynn Ting (whose legal names are Liang Li and Lin Ding).
Mr Wu said he proceeded with the sale because he feared he would be liable for damages after having signed the contract.
Roy Li has denied misleading his client, stating that he told Mr Wu before making the offer that he and his partner were the true buyers. However, Li conceded that he failed to ensure Mr Wu signed a legally required written disclosure form acknowledging Li's interest in the transaction.
Li also conceded that at least one home open at the property was cancelled at the last minute, with potential buyers only able to view the outside, due to the rental tenant refusing to grant access.
Commissioner Blake said investigators would examine documents related to the transaction with Mr Wu to determine whether a breach had occurred.