Trial in Wels

Finale of the dubious real estate deal on Lake Traunsee

The verdicts relating to the dubious real estate deal on Lake Traun were handed down today at Wels Regional Court.

(Bild: Markus Wenzel)

A "gang" of six defendants - a lawyer, a solicitor, an estate agent, a notary and two real estate developers - allegedly took advantage of an elderly woman's dementia and bought a property from her far below its value, according to the indictment. Five of them were found guilty on Tuesday.

The two lawyers, a real estate agent and two managing directors of a real estate company were found guilty of aggravated fraud at Wels Regional Court on Tuesday and sentenced to partial prison terms of between 18 and 36 months. The accused notary, on the other hand, was acquitted. The verdicts are not yet legally binding.

"Deliberately eliminating the free market"
The court found the estate agent guilty of serious fraud, breach of trust and giving false evidence. She was sentenced to 24 months, 16 of which were conditional. The real estate developers were sentenced to 36 months, 24 of which were conditional, and 24 months (16 of which were conditional) for aggravated fraud. The two lawyers were sentenced to 18 months each, 12 of which were conditional, for aggravated fraud - and one also for making false statements. These five people had "deliberately eliminated the free market", according to the reasons for the verdict. The real estate company was sentenced to a fine of 2,000 euros as an association liable for its managing directors.

The notary was acquitted. He was not involved in the fraud and the notarization of the signature on the purchase contract was "an everyday transaction" for him, the court found.

Long road to trial
It was a long road to the verdict. A real estate transaction was completed on Lake Traunsee back in 2019. The former guesthouse, including a small lakeside property, of a then 83-year-old woman from Gmunden - she has since passed away - was sold to a real estate developer for 750,000 euros. But what looked like a normal transaction turned into a criminal case. 

Price is said to have been too low
The woman's relatives fought the deal because the price was allegedly too low and the lady was apparently already suffering from dementia at the time of signing the contract. According to an expert, the property was worth 1.7 million euros.

Illustrious panel in the dock
A lawyer, a solicitor, a real estate agent, a notary and two real estate developers were ultimately charged with taking advantage of the woman's poor state of health and buying the property below its value.

Not a criminal case
The proceedings dragged on: the trial has been ongoing since June 12. "This is not a criminal case. No damage has been done." According to a lawyer for one of the defendants, the seller's dementia was not apparent at the time and the valuers' calculations regarding the property were simply wrong.

In the course of the long trial, there were some inconsistencies, family relationships were revealed and witnesses were heard. On Tuesday, the closing arguments were on the agenda - nine in total. In addition to the defendants' lawyers, the representatives of the private parties and the public prosecutor's office also had their say. The defense lawyers all called for acquittals, at least in cases of doubt. Incidentally, the sale has already been reversed under civil law.