Another Melbourne real estate agent has been caught underquoting, as Consumer Affairs Victoria’s crackdown on the practice continues.
Village Real Estate (Newport) has offered Consumer Affairs Victoria (CAV) an enforceable undertaking following investigations by CAV’s underquoting taskforce, Taskforce Vesta.
Village Real Estate (Newport) advertised a property at $770,000+ and $800,000+ despite being aware that the owners would not consider any offer lower than $950,000 and had rejected a private offer of $900,000.
In offering the enforceable undertaking the agency has agreed to:
- Pay $15,000 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 August 2016, the Andrews Labor Government announced tough new laws targeting underquoting in the real estate industry, set to come into effect this year.
For more information on Taskforce Vesta and enforceable undertakings, visit: consumer.vic.gov.au
Quotes attributable to Minister for Consumer Affairs Marlene Kairouz
“Underquoting is not a smart sales tactic – it’s illegal. This undertaking serves as a serious warning to agents doing the wrong thing.”
“Victorian home buyers deserve a fair go. There’s nothing clever about deceiving people who are making one of the biggest purchases of their life.”
“Our new laws will help ensure Victorian house hunters don’t waste time and money on properties they can’t afford.”
Reviewed 19 August 2020