Harcourts Wantirna fined $60,000 for underquoting as Consumer Affairs crackdown continues

ANOTHER Melbourne real estate agency has been busted for underquoting — the eighth to come under fire since a crackdown by the state’s consumer watchdog.

Harcourts Wantirna has admitted to underquoting on 13 properties, including 5 Greenlow Ave, Wantirna.

ANOTHER Melbourne real estate agency has been busted for underquoting — the eighth to come under fire as the result of a crackdown by the state’s consumer watchdog.

Next Gen Real Estate, trading as Harcourts Wantirna, and its director Archie Mantsos have been fined $60,000 by Consumer Affairs Victoria after admitting to wrongdoing relating to properties in Wantirna, Wantirna South, Bayswater, Scoresby, Forest Hill and Knoxfield.

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This included “misleading potential buyers” by routinely setting search ranges tens of thousands of dollars below what the agency believed properties would sell for, CAV documents show.

The agency also advertised properties online with prices that were up to $110,000 lower than estimated sale ranges.

In one instance, a five-bedroom house at 68 Tate Ave, Wantirna was advertised for $580,000-plus and $590,000-plus when it was expected to earn $690,000-$750,000.

CoreLogic records show it went on to sell for $810,000 in November 2014.

68 Tate Ave, Wantirna sold for $810,000 after being advertised for $580,000-plus and $590,000-plus.

Another house at 5 Greenlow Ave, Wantirna was estimated to sell for $560,000-$620,000, but advertised at “$490,000 plus” before fetching $680,000 in August 2014.

And 32 Koomba Rd, Wantirna was advertised with a “non-explicit search price” of $750,000 when it was expected to fetch $900,000-$990,000, before selling for $910,000 in November 2014.

This search range is not visible to the public, but behaviour like this means buyers who search for properties within their price range turn up homes with much higher estimated selling prices.

32 Koomba Rd, Wantirna.

Harcourts Victoria chief executive Sadhana Smiles said the company took underquoting legislation “very seriously” and was “disappointed to have a member of our team in breach of this in isolated situations”.

“We have taken swift action with the business owner and his team to ensure they are fully trained and understanding of quoting guidelines and laws,” she said.

“Harcourts Victoria fully supports the new legislation set out by CAV, as it creates more transparency within the industry and ultimately supports property buyers and sellers.”

CAV began investigating Harcourts Wantirna after receiving 17 complaints between April and July 2015.

The agency has acknowledged transgressions relating to four properties under the Australian Consumer Law and 20 properties under the Estate Agents Act 1980.

Mr Mantsos, 47, has accepted an enforceable undertaking with CAV that will require his agency to pay $60,000 to the Victorian Consumer Law Fund, implement a “compliance program” and prominently display notices acknowledging wrongdoing.

Village Real Estate Newport, Hocking Stuart Yarraville and O’Brien Croydon — which was trading as Professionals Methven Croydon at the time — have also admitted to underquoting this year.

Three further cases remain in court, including one involving Fletcher & Parker Balwyn for alleged underquoting on 25 properties, scheduled to resume in the Federal Court on September 18.

Manningham Property Group, trading as Hocking Stuart Doncaster, and its directors are set to return to the same court on December 4 over nine charges.

A case involving Sweeney Estate Agents over alleged underquoting on 15 properties, among other breaches, returns to the Victorian Civil and Administrative Tribunal next month.

Another court case ended in October with Hocking Stuart Richmond being fined $330,000 plus up to $90,000 in costs for underquoting on 11 properties.

The State Government’s tougher underquoting laws are set to kick in on May 1.