A real estate agency in Melbourne's outer east is the latest to be stung for underquoting properties by hundreds of thousands of dollars.
When uploading listings to a property portal, agents of Next Gen Real Estate Pty Ltd ??? trading as Harcourts Wantirna ??? were found to have routinely set price search parameters substantially below what they believed properties would sell for.
It is the latest in a string of actions taken against agents by Consumer Affairs Victoria, including Hocking Stuart Richmond, which was slapped with a record $330,000 fine in the Federal Court.
Hopeful buyers would search for properties in their budget and would find homes with a much higher estimated selling range or estimated selling price.
In one instance, would-be buyers saw a property advertised for $750,000 when the estimated selling range on the authority was between $900,000 and $990,000.
Another was advertised at "$580,000-plus" when the range was between $690,000 and $750,000.
The properties were in Wantirna, Wantirna South, Boronia, Bayswater, Scoresby, Knoxfield and Forest Hill.
Harcourts Wantirna agreed to contribute $60,000 to the Victorian Consumer Law Fund, as part of a signed undertaking where it acknowledged it made false and misleading representations about for sale properties.
The agency was investigated after Consumer Affairs Victoria received 17 complaints about the company's conduct between April and July 2015.
The company, and its sole director, Achilles Mantsos, 47, acknowledged contraventions relating to four properties under the Australian Consumer Law and 20 properties under the Estate Agents Act 1980.
The higher end of an estimated sale range is meant to be no more than 10 per cent from the lowest amount. But a Scoresby property was listed in the sale authority as $490,000 to $549,000, which exceeded 10 per cent.
The agency has agreed to contribute $60,000 in six instalments within 30 days of starting the undertaking, and implement a compliance program within three months.
The Andrews government is set to introduce stronger laws aimed at stamping out underquoting on May 1.
It will ban agents from using the "offers above" and "price-plus" terms.
Agents will be required to advertise either a single price or price range that must fall within 10 per cent of the lower end and upper end.
Harcourts Victoria chief executive Sadhana Smiles said the company took the underquoting legislation seriously, and was disappointed a member of its team was in breach, in isolated situations.
"We have taken swift action with the business owner and his team to ensure they are fully trained and understanding of quoting guidelines and laws," she said.
"With new laws coming into effect in May, and as part of the ongoing training we offer, we are running a series of workshops around the new legislation with the entire network."
Ms Smiles said the new legislation created more transparency in the industry and supported property buyers and sellers.
