Melbourne agent taken to Federal Court after underquoting 11 properties

A Melbourne real estate agent will be taken to the Federal Court for misleading conduct after underquoting multiple homes in the city’s south eastern suburbs.

A Melbourne real estate agent will be taken to the Federal Court for misleading conduct after underquoting 11 properties in the city’s south eastern suburbs.

Ray White Oakleigh and senior sales executive Nick Strilakos are being accused of breaches to the Australian Consumer Law for making false and misleading statements.

Consumer Affairs Victoria director Nicole Rich has revealed agents at the firm exchanged text messages betting or guessing what the homes would actually sell for, despite underquoting them.

RELATED: Call to name and shame, disclose reserves in bid to finally nail underquoting

Ray White Romsey principal Debra Lawry flees with deposit money from trust account

Real estate underquoting: Fines spike amid crackdown on dodgy Victorian agents

The allegations relate to sales across Rowville, Mulgrave, Bentleigh East, Oakleigh South and Blackburn South between February 2022 and November 2023.

CAV claim that after entering an agreement with the home seller, the agent dropped their estimated selling price and advertised them at the lower figure.

In all instances, the properties sold above the quoted range and in many cases well above.

Nick Strilakos of Ray White Oakleigh.

In seven of the 11 cases of alleged underquoting, CAV have indicated vendors were signed on to agreements that would pay the agent 2.2 per cent to 2.5 per cent in commission for the value of sales up to the vendor’s reserve, but a whopping 22-25 per cent of any windfall above that figure.

Ms Rich said this had been particularly concerning as it indicated underquoting was also harming home sellers.

If successful in their prosecution, CAV will seek financial penalties for the agency and Mr Strilakos, compliance and training programs for agents involved and adverse publicity orders that would force the agency to advertise their poor conduct.

Ms Rich said it was the first time in a few years they had taken an agency to the Federal Court, and that it was a rarer step for them to take.

“We do see this as a significant matter,” she said.

“He (Mr Strilakos) was the lead agent in all of the cases. But in a number of cases we have evidence of text messages with other agents in the agency and they appear to have been aware of some aspects of the sales campaign.

“Some show that they are taking bets or guesses on the final sale price, and they are generally a lot higher than they were advertised or even the clients’ reserve.”

Mr Strilakos’ agent profile shows he has 15 years experience across a range of agencies and currently has a number of homes actively for sale.

His profile decribes him as having an impeccable reputation for customer care and a tireless commitment to professional advice and exceptional results.

In 2016, another real estate agency, Hocking Stuart Richmond, was penalised $330,000 for misleading and deceptive conduct after CAV took them to the Federal Court.

Ms Rich added that CAV had a number of other investigations underway at present and were not ruling out further prosecutions, though could not clarify when these might occur.

It comes less than a week after the Herald Sun revealed a Romsey-based real estate agent has allegedly left the country after clearing out her firm’s trust account.

Kyneton woman Debra Lawry, who also worked under the name Debra Watchman, had already been facing the suspension or cancellation of her license by Consumer Affairs for breaches relating to her trust account’s auditing.

In the week leading up to the AFL Grand Final she is understood to have taken as much as $230,000 in deposits paid for homes and is believed to have left the country.

Victoria police have confirmed they are investigating allegations of a theft from a business in Romsey.

Ray White Victorian chief executive Domenic Belfiore said they had been unaware of the allegations.

“We take consumer protection very seriously and understand these are serious allegations,” Mr Belfiore said.

“We are investigating the matter.”

---

Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox.

MORE: Carrie Bickmore’s former husband Chris Walker snaps up new Eaglemont home

Underquoting Victorian real estate agents hit with $500k in fines, prompting calls for more

Toorak: Riverfront mansion owned by Mitre 10 boss’ wife hits the market with $55m price

Originally published as Melbourne agent taken to Federal Court after underquoting 11 properties