This article is from the Australian Property Journal archive
TWO more Melbourne real estate agents have been caught underquoting, including another Hocking Stuart agency.
A Consumer Affairs Victoria’s crackdown has Hocking Stuart (Yarraville) and O’Brien Real Estate (Croydon) engaged in underquoting.
Hocking Stuart (Yarraville) and O’Brien Real Estate (Croydon) admitted to:
· Engaging in false and misleading conduct by underquoting property prices to prospective buyers
- Listing a price range in online advertisements or in email correspondence which was less than the estimated selling price on the sales authority.
Hocking Stuart (Yarraville) also admitted to misleading potential buyers by using a ‘blind price’ on realestate.com.au that caused properties to be advertised in a lower price bracket than the agency’s estimated selling price.
Both agencies have offered enforceable undertakings to CAV and agreed to:
· pay $45,000 to the Victorian Consumer Law Fund
· Implement a compliance program which includes the appointment of a compliance officer, regular and practical staff training, and the development of a complaints handling system
· Prominently displaying a notice in their reception acknowledging the contraventions.
In October last year the Federal Court found Hocking Stuart Richmond engaged in misleading and deceptive conduct and to have made false and misleading representations about the sale of land.
As a result, Hocking Stuart Richmond was slapped with a record $330,000 fine and legal costs of up to $90,000 for engaging in underquoting.
Australian Property Journal
