Underquoting causes significant frustration and disappointment for potential buyers, and costs in time and money spent undertaking pre-purchase inspections for properties that they could never realistically afford.
Our inspection program continued to focus on estate agents’ compliance with laws. We conducted 227 auction and underquoting inspections.
We took strong enforcement action when laws were not followed. The Federal Court of Australia found that estate agency, Hocking Stuart (Richmond) Pty Ltd ACN 080 596 603 had engaged in misleading and deceptive conduct, and made false and misleading representations in contravention of the Australian Consumer Law and Australian Consumer Law (Victoria). Our investigation revealed the agency had advertised price ranges lower than the expected selling price in the marketing of 11 properties in Richmond and Kew. The agency was penalised $330,000 and agreed to pay costs of $80,000.
View our Changes to underquoting laws in Victoria video.