Two more Victorian real estate agencies are facing court action for underquoting, just months after a record $330,000 fine was handed out to another Melbourne agency.
Consumer Affairs Victoria will allege Fletcher & Parker Balwyn marketed 25 properties in Melbourne's eastern and south-eastern suburbs in 2015 knowing the vendors would not sell for a price within the listed range, or that the properties were unlikely to sell for the price listed.
Hocking Stuart Doncaster is accused of doing the same thing with nine properties in 2014 and 2015.
Consumer Affairs Victoria has started legal proceedings in the Federal Court of Australia against the agencies for allegedly engaging in misleading and deceptive practices relating to the sale of land.
There are a further 11 investigations under way into underquoting in Victoria.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
Hocking Stuart Richmond in October was found to have manipulated 11 house price estimates in the sought-after areas of Richmond and Kew between January 2014 and June 2015, and ordered to pay a $330,000 penalty plus $80,000 in costs.
The agency was given two years to pay the fine, but their lawyers argued for an extra 13 months on top.
Federal Court judge John Middleton in December ruled the request was "excessively long".
He said extending the time frame would diminish the impact of the penalty, which had to deter others in the real estate industry from similar behaviour.
"The court must not overlook the seriousness of the contravention," Justice Middleton said in December.
The Federal Court earlier found Hocking Stuart Richmond intended to deceive home buyers with the illusion of a bargain.
Laws aimed at curbing underquoting were passed in Victoria in November, with agents required to tell prospective buyers about three recent comparable sales, and the median price for the suburb.
The new laws also ban advertising price ranges of more than 10 per cent and require advertising to be promptly updated if the seller rejects a higher written offer to purchase the property.
