An Australian property buyer's agency, Dashdot, has collapsed into voluntary liquidation, leaving customers worried about the money they paid upfront. Unlike a traditional local agent working within a single state or territory, Dashdot operated nationally, with its workers based remotely, and focused specifically on property investing. The company went under late last month.
Dashdot was founded by Goose McGrath and Gabby Billing, who said they had worked out a way to identify property markets before they boomed, using mostly technology and proprietary data. They presented this as a way to help everyday Australians secure their financial future. Clients would typically pay substantial fees upfront, in the range of 20,000 to 25,000 dollars.
The financial picture at the time of the collapse was dire. Dashdot had an estimated 16.6 million dollars in liabilities, against only an estimated 71,000 dollars that would be recoverable. The gap between what the company owes and what can realistically be returned is enormous.
Much of the money at stake belongs to the company's own customers. About two-thirds of the liabilities are made up of customer fees for services that had not yet been performed, or refunds. Because these clients are unsecured creditors, they sit near the back of the queue for any money that the liquidation eventually recovers.
There are also questions about the company's conduct in its final days. Communications seen suggest that employees were trying to get customers to proceed as little as three days before the business entered voluntary liquidation. On its face that does not prove wrongdoing, but it raises questions about what the company knew about its financial position at the time, something the liquidators are expected to examine.
The case has also turned attention to the wider buyer's agency sector, which has grown significantly over the past five to ten years as the property market boomed. Some in the industry say the relevant legislation, which is based at state and territory level, has not kept up with how the sector has evolved. They also note that the large upfront fees charged by Dashdot are not standard practice, and warn that customers need to do careful due diligence before engaging an agent.