Melbourne real estate agent Dean Johnson’s licence cancelled by VCAT

A western suburbs real estate agent has been banned from holding a licence for two years over misleading conduct, including making “bullish” price estimates to clients before advertising homes for less.

Dean Johnson, pictured in 2007, has had his estate agent’s licence cancelled.

An agent operating in Melbourne’s west has had his real estate licence cancelled over “seriously deficient” conduct, including underquoting.

The Victorian Civil and Administrative Tribunal has banned Dean Anthony Johnson from holding a licence for two years, after finding he had breached the Estate Agents Act 35 times from November 2014 to February 2016, while he was director of Property Express Pty Ltd.

Senior VCAT member Anna Dea said in her order that the penalty would “send a message” to other agents that “knowledge of and compliance with the law is an absolute requirement”.

Ms Dea determined in July that Mr Johnson had made “bullish” price estimates before advertising properties for lower amounts, creating “a gap between the estimate given to the client to get the job and the amount advertised to the market”.

The vendor of one property on Barkly St, West Footscray, explicitly set a $265,000 reserve, but it was advertised between $235,000 and $260,000 before selling for $265,000 in 2015.

This Barkly St, West Footscray, property was advertised below the vendor’s explicit reserve.

Ms Dea stated this – along with other breaches including failing to include price estimates and state commission fees as dollar amounts on multiple sales authorities – made Mr Johnson unfit to hold a licence.

She said Mr Johnson had come under fire for price advertising on two previous occasions, with one resulting in a two-month licence suspension in 2012.

“He has consistently failed to make himself aware of how to properly comply with the law (or), he has failed to apply sufficient rigour to its application,” Ms Dea said.

“His conduct has been seriously deficient.”

Consumer Affairs Victoria had argued Mr Johnson’s conduct “presented a real risk to the public”, demanding a licence disqualification of up to five years, VCAT documents show.

Mr Johnson had proposed a nine-month suspension to allow him to “undertake suitable education” to avoid future breaches.

The 55-year-old told the tribunal earlier this month he intended to become better educated and to never again be the director of a real estate business, so he could continue his 36-year agent career with “100 per cent compliance”.

Mr Johnson has worked for Hodges Yarraville since August last year.

Ms Dea also cancelled and disqualified Property Express’s licence for two years for contravening the Estate Agents Act 65 times from August 2014 to February 2016. These included Mr Johnson’s 35 breaches.

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At the time, Property Express traded as Sweeney Yarraville and Footscray, which is now run by a different company.

CAV director Sam Jenkin said homebuyers could be confident the watchdog was “doing all they can to stamp out underquoting”.

Earlier this month, Hoskins Maroondah was fined almost $900,000 by the Federal Court for underquoting 24 properties and misleading clients to boost commissions.

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