Underquote fine

CONSUMER Affairs Minister Tony Robinson has welcomed a court’s decision last Friday to fine a real estate agent $20,000 for underquoting.
Real estate agent T Som Properties Pty Ltd was fined $20,000 in Melbourne Magistrates’ Court today and was ordered to pay $1240 in costs after pleading guilty to 13 charges of underquoting under the Estate Agents Act 1980.
The charges related to properties advertised for sale in Burwood East, Glen Waverley, Wheelers Hill, Forest Hill, Springvale North, Clayton, Mount Waverley and Mulgrave.
The advertised price was as much $80,000 below what the defendant had estimated on the vendors sale authority.
Consumer Affairs Victoria investigated the Glen Waverley real estate agent’s actions after the Real Estate Institute of Victoria raised concerns that the defendant may have breached underquoting laws.
Mr Robinson said the fine sent a clear message to real estate agents that underquoting would not be tolerated.
“Home buyers have the right to expect that the price at which a house is advertised for sale, is a reasonable estimate of the price range which the house may legitimately be sold for,” he said.
The magistrate said the actions breached consumer legislation intended to protect consumers.
He said the practice of underquoting was to attract people who would otherwise not be attracted to buying a property because of the price.
The magistrate said general deterrence was important and estate agents must make sure that they are aware of professional rules and comply with them.
Anyone with concerns about the conduct of real estate agents should contact Consumer Affairs Victoria on 1300 55 81 81.