Real estate agent caught underquoting
The Minister for Victorian Consumer Affairs Minister Marlene Kairouz stated that another Melbourne real estate agent has been caught underquoting, as Consumer Affairs Victoria's crackdown on the practice continues.
Village Real Estate (Newport) has offered Consumer Affairs Victoria (CAV) an enforceable undertaking following investigations by CAV's underquoting taskforce, Taskforce Vesta.
Village Real Estate (Newport) advertised a property at $770,000+ and $800,000+ despite being aware that the owners would not consider any offer lower than $950,000 and had rejected a private offer of $900,000.
In offering the enforceable undertaking the agency has agreed to:
- Pay $15,000 to the Victorian Consumer Law Fund
- Implement a compliance program which includes the appointment of a compliance officer, regular and practical staff training, and the development of a complaints handling system
- Prominently displaying a notice in their reception acknowledging the contraventions.
"Underquoting is not a smart sales tactic - it's illegal. This undertaking serves as a serious warning to agents doing the wrong thing," Ms Kairouz said.