Fletchers’ lawyer says case ‘off the rails’ as agency faces court for alleged underquoting

A LAWYER for a real estate agency accused of underquoting the most homes under a consumer watchdog crackdown declared the case was “off the rails already” in its first court hearing.

Fletcher & Parker Balwyn are alleged to have underquoted on 25 properties in 2015.

A LAWYER for a real estate agency accused of underquoting the most homes under a consumer watchdog crackdown declared the case was “off the rails already” in its first court hearing.

Fletcher & Parker Balwyn’s legal team lashed out in Federal Court at the information provided in documents served by Consumer Affairs Victoria on the eve of Christmas.

CAV alleges the agency underquoted on 25 properties in Melbourne’s east and southeastern suburbs in 2015.

Dan Star SC for the agency argued each individual case needed to be outlined more clearly to figure out “the real fighting ground of this case.”

Fletchers faces a hefty hip-pocket whack following Hocking Stuart’s Richmond office being fined $330,000 plus costs last year for underquoting on 11 properties.

Mr Star said they needed to figure out how many cases to contest and required more concise material from the consumer watchdog to do so.

Justice Bernard Murphy said CAV should prepare a points of claim, setting out how the agency misled or deceived buyers on a sale-by-sale basis, to submit to the agency’s legal team for a response.

The two parties will attend a mediation hearing before returning to court.

One of the properties Fletchers is alleged to have underquoted, a three-bedroom house in Dorene Court, Vermont South, sold for $1.6 million in September 2015 after first hitting the market with an advertised guide of $900,000-plus, CoreLogic records show.

Another property in Monash St, Box Hill South, sold for $1.731 million in May 2015 after being advertised for $1.1 million-plus.

Fletchers was the second agency CAV launched legal action against for underquoting after the watchdog launched Taskforce Vesta in mid-2015 to crack down on the misleading practice.

Fletchers CEO Bradley Brown told the Herald Sun in December the group was “not happy” and the problem had been “attacked head on to make sure we don’t have any continuing issues.”

He said the group had enhanced its compliance and training programs immediately after the issue was raised in late 2015.

Another agency accused of underquoting on nine properties will also try and settle the case brought by CAV through mediation.

RELATED: Consumer Affairs and alleged underquoting agency Hocking Stuart, Doncaster, set for mediation

Consumer Affairs launched legal action against Manningham Property Group, trading as Hocking Stuart, Doncaster, and its directors Kenneth John Chappell and Anastasios John Adgemis in December over the marketing of properties in Melbourne’s east in 2014 and 2015.

The parties have consented to an order to attend mediation made by Justice Murphy in the Federal Court.

The case will return to court on October 15 if not settled through mediation first.

RELATED: Underquoting: Consumer watchdog launches action against Melbourne agency

RELATED: Fletchers CEO speaks after Consumer Affairs alleges underquoting in Melbourne’s eastern suburbs

RELATED: Hocking Stuart, Yarraville, and O’Brien, Croydon, admit to underquoting Melbourne homes

RELATED: Real estate agent busted for underquoting house by $180,000

Three other agencies have admitted underquoting this year following the crackdown from the consumer watchdog, which will take serial offenders Sweeney Estate Agents to the Victorian Civil and Administrative Tribunal over alleged underquoting on 15 properties on February 20.

New underquoting laws that would heavily fine guilty agents, strip commissions and require price guides to be publicised are due to come into effect early this year.