PHOTO: More than $1m in fines have been handed out for underquoting in Victoria, up from $360,000 in 2021-2022
Numerous real estate agents have been fined or cautioned for underquoting property sale prices in a recent crackdown. In Victoria, a state government taskforce, initiated in September 2022, has successfully targeted agents who advertise properties at prices below their estimated values, resulting in fines exceeding $1 million.
Consumer Affairs Minister Gabrielle Williams confirmed on Monday that 47 agents had been fined in the past 15 months, while an additional 89 received official warnings. The total fines surpassed $1 million, a significant increase from the $360,000 recorded in 2021-2022.
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The crackdown aims to eliminate practices where houses are listed at prices already rejected by sellers or below their desired amounts. Williams emphasized the importance of agents adhering to the law and accurately representing the properties they sell, stating that illegal underquoting is both unfair and intolerable.
To enforce compliance, inspectors actively monitor auctions and offices, taking action against agents found underquoting. The taskforce relies on public reports and intelligence to identify potential law violations. Over the course of its operations, the taskforce has scrutinized 1,051 sales campaigns, conducted 157 onsite inspections, and attended 124 auctions to investigate suspected underquoting and gather evidence of breaches.
Agents caught underquoting face fines exceeding $11,000 per breach or penalties of nearly $38,000 under the Estate Agents Act. For the most serious misconduct, corporations may face higher penalties of $50 million, and individuals may be subject to fines of $2.5 million under the Australian Consumer Law.
SOURCE: GUARDIAN
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