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Consumer Protection is pursuing the business formerly known as Nicheliving in the State Administrative Tribunal over allegations it breached WA law by releasing funds from a trust account improperly.
Consumer Protection commissioner Trish Blake confirmed her agency was pursuing the Australian Property Alliance, which was established by Nicheliving’s directors after the company was deregistered as a builder in 2024.
Blake told ABC Mornings it was pursuing APA over $50,000 of a customer’s money that was released to a builder when it was meant to remain in a trust account.
She said the customer’s money had been repaid, but when a developer sold off the plan for strata developments, the law required that deposits paid by customers remained in a trust account until the strata plan and development were registered.
“That means that if the development doesn’t go ahead, that money is protected and those deposits can be returned to the consumers; they’re kept safe,” Blake said.
“What we’re alleging in this instance is that didn’t happen.
“So when it was trading as Nicheliving real estate, they received a sum of money from a particular consumer. They released the lion’s share of that money to the builder the day after the contract was signed, and then they also released what was remaining after the buyers had actually cancelled the contract.”
“What we’re alleging is that the allegations include unauthorised withdrawals of client funds.“
Blake said because APA was also acting as real estate agents Consumer Protection was alleging the company failed to meet the standards of honesty, due care and diligence.
If the SAT finds APA breached its obligations, it could result in a reprimand or complete cancellation of its licence.
The SAT hearing will take place on March 10.
APA did not respond to a request for comment.
Energy Minister Amber-Jade Sanderson declined to comment directly on Consumer Protection’s action, but urged people to pick their builders carefully.
“People need to exercise caution when they’re engaging their builders and use credible operators with experience and a track record,” she said.
“When we see operators as we have, such as Nicheliving, it undermines the entire sector and some of the really good quality operators that we have in Western Australia.”
Nicheliving’s construction division was plunged into administration in November 2024 when it was unable to complete 230 unfinished home builds, leading to a State Administrative Tribunal battle over its building registration.
The legal fight over the registration meant homeowners who had been waiting years for their houses to be complete were unable to access indemnity insurance to have someone else finish the build.
In response, the state government parachuted in and forced Nicheliving to relinquish its building licence in exchange for taxpayers footing the company’s $40 million home indemnity insurance bill to get its homes completed.
The group was dragged out of administration in December after creditors backed a $2.7 million surety from the eponymous family trusts of directors Ronnie Michel-Elhaj and Paul Bitdorf to retain control.
The Australian Securities and Investments Commission conducted several raids across two states as part of an investigation into Nicheliving late last year.
Hamish Hastie is WAtoday’s state political reporter and the winner of five WA Media Awards, including the 2023 Beck Prize for best political journalism.Connect via X or email.From our partners
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