Victoria cracks down ‘dodgy’ house price underquoting before auctions

One state government is cracking down on an illegal auction act that crushes the dreams of desperate Aussie house hunters.

The Victorian government is cracking down on the illegal practice of underquoting house prices ahead of auctions.

More than 20 inspectors part from the Consumer Affairs Underquoting Taskforce attended 20 auctions in Doncaster and surrounding suburbs alongside Consumer Affairs Minister Nick Staikos on Saturday as part of a fresh Autumn blitz to check compliance with underquoting laws.

It is illegal for an agent to advertise or advise the price of a property that is less than the seller’s auction reserve or asking price, the agent’s estimated selling price or a price in a written offer that has already been rejected by a seller on the basis it was too low.

The Underquoting Taskforce was made permanent last year. Picture: NewsWire/ Nadir Kinani

The taskforce, which was launched in 2022 and became a permanent fixture last year, has fined over 160 real estate agents and issued more than 220 official warnings to those caught breaching obligations.

Fines have totalled over $1.8m, the Victorian government said.

Underquoting auctions was a leading real estate issue reported to Consumer Affairs Victoria, with more than 3,740 complaints issued from purchasers, real estate agents and buyers’ advocates.

Over 30 per cent of the reports were made by real estate agents.

Officers attending the auctions across the Melbourne suburbs will check compliance with auction and sales rules with real estate agents and buyers, and monitor sales rules for potential underquoting.

The Allan government is cracking down on illegal underquoting at auctions Picture: NewsWire / Valeriu Campan

Mr Staikos said he wanted to crack down on the “dodgy behaviour” of underquoting.

“Buying a house is already stressful enough, without the worry of also having your dreams dashed at the first hurdle by illegal underquoting,” he said.

“That’s why our underquoting taskforce is hitting the pavement – to continue the crack down on this dodgy behaviour, making buying a home fairer and easier for all Victorians.

“Our new laws will further protect Victorians – with increased fines for underquoting offences and mandatory training for real estate agents and property managers.”

Since its launch, the taskforce has monitored over 2,300 sales campaigns and attended 226 auctions.

The Consumer and Planning Legislation Amendment (Housing Statement Reform) Bill, which passed last week, increased the maximum penalty for underquoting to $47,422.

Under Australian Consumer Law, underquoting can breach the ban on misleading and deceptive conduct and false representations.

Originally published as Victoria cracks down ‘dodgy’ house price underquoting before auctions