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After a two-year trial, the state has decided to make its division dedicated to policing the practice of underquoting a permanent fixture.
Despite significant penalties and fines handed out since the start of the program, Victoria has decided that underquoting is still too great an issue across the state.
As such, Consumer Affairs Victoria (CAV) has moved to establish its underquoting taskforce as a permanent team within the agency.
According to the state, underquoting is still one of the top real estate issues to elicit complaints from consumers, with more than 2,800 reports being lodged in the past two years. Over 30 per cent of those complaints came from real estate professionals themselves, according to CAV.
The actions of the taskforce have resulted in more than 320 official warnings and $1.6 million in fines. Taskforce investigators have reportedly monitored close to 2,000 sales campaigns and attended over 180 auctions to assess whether a property had been purposely priced lower than what the seller was willing to accept as a method of generating greater interest in the home.
Last week alone, the body launched criminal court proceedings against two agencies investigated by CAV which elected not to pay their fines after the watchdog alleged they had been advertising properties for uncertain amounts.
Cardamone Real Estate Mooroopna Pty Ltd (trading as Cardamone Real Estate) and Metaprop Pty Ltd (trading as Propnex Melbourne) will now go through the court system to determine if they failed to meet their obligations under Victoria’s Estate Agents Act.
At issue is whether the companies breached the law by stating selling prices or price ranges in online advertising that were modified by words or symbols.
That practice – which sees agencies use terminology to advertise prices such as “from”, “over”, “starting at” or “+” – was prohibited as part of underquoting law reforms that took effect in 2017. Fines for this offence range from $2,371 for individuals and $11,855 for companies, with the maximum penalty reaching $39,500.
CAV director Nicole Rich commented that by committing to keeping the taskforce around permanently, the state was exhibiting its commitment to enforcing its laws and “stamping out underquoting and creating a fair market for buyers and sellers”.
The taskforce will reportedly pay attention to Melbourne’s inner north-west in the months ahead, which has been the focus of numerous complaints as spring’s auction season has ramped up.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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