Vic real estate agent slapped with record fine

A real estate agency has been slapped with the state’s largest ever fine for underquoting on property prices.

Hocking Stuart Richmond’s conduct was serious, the court found. Picture: Mcevoy Stuart/ The Australian.

A Melbourne real estate agency has been fined $US330,000 plus costs for creating the “illusion of a bargain” by underquoting on 11 properties in the sought-after suburbs of Richmond and Kew.

Consumer Affairs Victoria confirmed it is the largest under-quoting penalty handed down in the state’s history.

Hocking Stuart 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 - $US148,044 - 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.” Hocking Stuart Richmond’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.

Hocking Stuart chief executive Simon Jovanovic said he was disappointed the Richmond office was being made an example of for what is an issue that affects the real estate industry as a whole.

“This is an area that agents, regulatory bodies and industry associations need to come together on to ensure the best outcome for home buyers,” Mr Jovanovic said.

AAP