Real estate agency fined for creating an ‘illusion of a bargain’

A MELBOURNE real estate agency has been fined $330,000 plus costs for creating the “illusion of a bargain” by underquoting on 11 properties.

Hocking Stuart has been fined. Picture: Mark Dadswell

A MELBOURNE real estate agency has been fined $330,000 plus costs for creating the “illusion of a bargain” by underquoting on 11 properties in the sought-after suburbs of Richmond and Kew.

Hocking Stuart in Richmond created an “enticing but illusory and misleading” marketing web which disadvantaged home buyers and other vendors, Federal Court judge John Middleton said in Melbourne.

The penalty effectively cancels the commissions Hocking Stuart Richmond earned from the sale of the properties — $148,044 — and imposes an additional amount to deter other agencies from similar conduct.

“Price is an essential piece of information about the property being offered for sale,” Justice Middleton said on Thursday.

“Buyers should be able to rely on correct information to make an informed decision.”

The agency’s conduct was serious, the court found.

The company’s representations could create “the illusion of a bargain” from which it stood to make financial gain.

“Many consumers seeking to buy a home were likely to be significantly inconvenienced, disappointed and deceived,” Justice Middleton said.

Home buyers may have missed the opportunity to buy elsewhere, being lured to a bargain that did not eventuate, he added.