PHOTO: Alena Darmel
Consumer Affairs Taskforce Targets Underquoting at Doncaster Auctions
Victoria’s real estate industry is facing a major crackdown on underquoting, with Consumer Affairs Victoria (CAV) hitting agents with $1.8 million in fines for breaching pricing transparency laws.
On Saturday, March 15, 2025, Minister for Consumer Affairs Nick Staikos joined 20 inspectors as they swept through over 50 auctions across Doncaster and surrounding suburbs, investigating widespread complaints of agent misconduct and deceptive pricing tactics.
Underquoting Remains the #1 Complaint from Homebuyers
According to CAV, underquoting remains the most significant issue in Victoria’s real estate market, with buyers frequently lodging complaints about misleading property price guides.
“Buying a home is already stressful enough without the added frustration of underquoting,” Staikos said. “That’s why our taskforce is on the ground, ensuring the rules are followed and homebuyers are treated fairly.”
How the Crackdown is Changing Victoria’s Real Estate Landscape
The underquoting taskforce, which was made permanent last year, has:
✅ Monitored over 2,300 property sales campaigns
✅ Attended 226 auctions to assess compliance
✅ Issued over 220 official warnings
✅ Fined 160 real estate agents, totaling $1.8 million
Additionally, several court proceedings have been launched against agents for serious breaches, with more investigations currently underway.
Agents Turning on Each Other as Industry Cleans Up
In an interesting twist, over 30% of all underquoting complaints in 2024 were lodged by real estate agents themselves, highlighting a growing intolerance within the industry for deceptive practices.
Agents found guilty of underquoting face severe financial penalties under Australian Consumer Law, including:
💰 Up to $2.5 million in fines for individuals
💰 Up to $50 million for corporations
New Laws Introduce Even Tougher Penalties for Underquoting
Victoria is ramping up its efforts to clean up the real estate industry with tougher penalties and stricter agent training requirements.
The recently passed Consumer and Planning Legislation Amendment (Housing Statement Reform) Bill 2024 includes:
📌 Increased fines for underquoting offences – now up to $47,422 per breach
📌 Mandatory ongoing training for real estate agents and property managers
📌 Stricter licensing and registration requirements
“These new laws are a game-changer,” Staikos said. “With higher fines and tougher regulations, we’re ensuring that Victorian homebuyers get a fair deal.”
What This Means for Homebuyers and Real Estate Agents
For homebuyers, the crackdown on underquoting is a positive step toward greater transparency in the property market. No longer will buyers waste time and money chasing homes priced well below their actual market value.
For real estate agents, the message is clear: Play by the rules, or pay the price. With millions in fines already handed out and tougher penalties in place, Victoria’s real estate industry is undergoing a major shift toward accountability and professionalism.
SOURCE: REB