Real estate underquoting: Hocking Stuart Richmond to face court

UPDATE: VICTORIA’S consumer affairs watchdog has taken a Melbourne real estate agency to court for underquoting as the Minister vows to continue a crackdown on the practice.

REIQ

UPDATE: VICTORIA’S consumer affairs watchdog has taken a Melbourne real estate agency to court for underquoting as the Consumer Affairs Minister vows to continue a crackdown on the practice.

Consumer Affairs Victoria has brought 11 charges against Hocking Stuart, Richmond, in the Federal Court on Friday relating to the marketing of properties in and around the Richmond area.

They alleged the agency contravened sections 18 and 30 of the Australian Consumer Law.

Section 18 prohibits misleading and deceptive conduct in trade and section 30 prohibits, in respect of the possible sale of land, false and misleading representations as to the price payable.

A Consumer Affairs Victoria spokeswoman said they would not be making any further comment as the matter was before the courts.

A statement from the Hocking Stuart head office said it was working through the allegations made by Consumer Affairs Victoria to its Richmond franchised office.

“What we can say is our head office takes its responsibility to prospective buyers seriously,” the statement said.

“We have a range of measures in place to ensure accurate pricing of our portfolio of properties across the group, including undertaking annual audits at each office and providing regular, rigorous training to new and existing offices.

“Furthermore, we actively encourage vendors to advertise their properties with a price guide to ensure transparency for buyers and sellers alike.

“Under the current law, while vendors may seek the advice of agents, they are not required to disclose their reserve to agents until the day of auction and it can be higher than the advertised price if the interest is strong.

“This continues to be a global issue across the real estate industry.”

Consumer Affairs minister Jane Garrett said they were cracking down on underquoting to give buyers a fair go.

“Buying a house is one of the biggest decisions people make,” she said.

“It’s heartbreaking for potential buyers when they are lured into properties they can’t afford.

“We are putting agents on notice.

“The government is coming after anyone doing the wrong thing.”

Ms Garrett said while most estate agents are doing the right thing they still had a problem in this industry.

Consumers Affairs Victoria reviewed 100 cases from last year’s spring selling season, resulting in 880 cases coming under review.

There are eight major investigations underway and the watchdog will be looking at another 100 cases over this autumn selling season.

Richmond office director Peter Perrignon could not be reached for comment.

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