After operating successfully for 2 years, Consumer Affairs Victoria’s underquoting taskforce will now be established permanently.
The decision highlights the taskforce’s crucial role in combatting underquoting and ensuring estate agents fulfill their obligation to provide accurate pricing information to Victorian homebuyers.
Underquoting remains significant in Melbourne’s property market, and it’s one of the top real estate issues people contact us about.
Since establishing the taskforce, we’ve received more than 2,800 reports from the public using our dedicated webform, with over 30 percent of these being submitted by other estate agents. These have helped guide the taskforce’s focus and activities. The taskforce has monitored more than 1,900 sales campaigns, attended more than 180 auctions, and issued over 320 official warnings and fines totalling more than $1.6 million.
Consumer Affairs Victoria Director Nicole Rich said making the taskforce permanent allows it to continue ensuring property prices are fairly advertised.
“We’re committed to stamping out underquoting and creating a fair market for buyers and sellers”, Rich said.
Following complaints from the inner north-west, our inspectors targeted sales in Essendon and surrounding suburbs on Saturday as Melbourne’s Spring auction season ramps up. The taskforce will continue focusing on suburbs where underquoting is reported as an ongoing issue.
This week, we launched criminal court proceedings against two agencies investigated by the taskforce.
Cardamone Real Estate Mooroopna Pty Ltd (trading as Cardamone Real Estate) and Metaprop Pty Ltd (trading as Propnex Melbourne) elected not to pay their fines after being caught allegedly advertising properties for uncertain amounts.
We allege that each agency failed to meet its obligations under the Estate Agents Act by stating selling prices or price ranges in online advertising that were modified by words or symbols. Examples of words or symbols that may modify a price or price range are “from", "over", "starting at" or "+".
These modifications were prohibited as part of underquoting law reforms, which came into effect in 2017, to protect consumers from being misled into thinking they could purchase a property at a lower price than the seller was willing to accept. This can lead to wasted time, efforts and resources, as buyers pursue properties they ultimately cannot afford.
Fines for this offence under the Estate Agents Act are $2,371 for individuals and $11,855 for companies. The maximum penalty for this offence is over $39,500.
If you suspect underquoting, report it to us.
Find more information about underquoting.