Melbourne real estate agent allegedly breached underquoting laws on 11 properties

A Yarraville real estate agency and its director have been accused of breaching underquoting laws for 11 properties.

Nicholas Skapoulas and the agency of which he is the director, Nicholas Scott Real Estate, will face a hearing at the Victorian Civil and Administrative Tribunal after Consumer Affairs Victoria’s underquoting taskforce started a disciplinary proceeding, CAV said in a release.

The underquoting taskforce is operating across Melbourne.Credit: Penny Stephens

Disciplinary proceedings, if they find a real estate agent guilty, can result in the agent’s licence being suspended or cancelled.

The underquoting taskforce continues to monitor sales campaigns and auctions across Melbourne.

Skapoulas and his agency (although he is the only agent from the agency named in the release as facing proceedings) are alleged to have committed several breaches of underquoting laws for 11 properties they were engaged to sell.

These alleged breaches included repeatedly supplying Statements of Information that did not comply with the law, such as advertising an indicative selling price lower than the estimated selling price given to the seller, or not listing the median selling price or comparable properties in the area.

It is also alleged they failed to provide information when the taskforce issued a statutory notice.

But when contacted on Thursday, Skapoulas said he had provided information.

“We supplied them everything when they came to our office,” Skapoulas told this masthead. “No consumer has made any complaint about our office.

“We are working with Consumer Affairs.”

Skapoulas was granted an estate agent’s licence in September 1995, records held with the Business Licensing Authority show.

The agency largely runs private sale campaigns rather than using the auction method.

Consumer Affairs Minister Nick Staikos said, without reference to this specific case, the government was supporting home buyers by stamping out illegal underquoting.

“Our underquoting taskforce is out and about in the community sending a strong message to agents that underquoting is illegal and will not be tolerated,” he said.

Underquoting can waste the time and money of buyers who attend inspections, arrange finance or pay for building inspections for properties they later realise they cannot afford.

Underquoting can waste time and money for buyers.Credit: Joe Armao

It occurs when a property is advertised at a price that is less than the estimated selling price, is less than the seller’s asking price, or has already been rejected by the seller – but it is difficult to prove.

In Victoria, all properties for sale must have a Statement of Information that includes the indicative selling price, the median selling price in the suburb, and the details of three comparable recent sales, when available.

The advertised price guide may be expressed as a single price or a range no wider than 10 per cent. However, there is no obligation for a vendor’s reserve price to fall within that range – a point raised in a 2022 government review.

The findings of the review – which recommended the underquoting taskforce – are yet to be made public.

The date of the VCAT hearing is not yet set.

Real Estate Institute of Victoria chief executive Kelly Ryan could not comment on the matter as it is before VCAT, but said more generally that the REIV was committed to offering education and support to real estate agents to ensure their compliance with underquoting laws.

“It’s also worth noting that, while the REIV treats such matters with the utmost seriousness, underquoting issues raised with Consumer Affairs Victoria relate to only a small fraction of the property transactions completed across the state,” she said.