Interesting read. . .
A VICTORIAN real estate agent has been fined $20,000 for underquoting.
The Melbourne Magistrates Court yesterday T Som Properties $20,000 and $1240 in costs after the Glen Waverley company pleaded guilty to 13 charges of underquoting under the Estate Agents Act.
The charges related to properties advertised for sale below market prices in Burwood East, Glen Waverley, Wheelers Hill, Forest Hill, Springvale North, Clayton, Mount Waverley and Mulgrave.
The advertised prices were as much as $80,000 below what T Som Properties had estimated on the vendors sale authority.
Consumer Affairs Victoria investigated the agent's actions after the Real Estate Institute of Victoria raised concerns the company had breached underquoting laws.
"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 for which the house may legitimately be sold for," he said.
"Agents have a responsibility to conduct businesses that comply with Victorian legislation, those that flout these laws will be found out and will be prosecuted."
The court heard the actions breached consumer legislation intended to protect consumers.
It heard the practice of underquoting was to attract people who would otherwise not be attracted to buying a property because of the price.
Two months ago Property Development and Investment Corporation, trading as Fletchers Northcote, was fined $7,500 for five counts of underquoting.
When they start fining for overquoting prices – then we will see a more level playing field.
They should be put into jail
I think the fine is nothing to them….JAIL…
The advertised prices were as much as $80,000 below what T Som Properties had estimated on the vendors sale authority.
…..$80,000 below estimated vendor sale… or in other word vendor reserve price? is it auction? if yes how much if the starting bid…. I think we as the buyer know that usually property will go 20% more.. than the advertised price in auction
I dont see why 80k is considered illegal (assuming the advertised price is more than 400k.. which is 20%). I've seen some agent which underquote by more than 30% than vendor reserve price.. why wont they get fine instead?
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