Barry Plant Manningham has found itself embroiled in controversy amid allegations of underquoting, specifically regarding a townhouse in Ivanhoe where it is claimed that a reasonable estimated selling range was not provided. Consumer Affairs Victoria (CAV) asserts that Barry Plant Manningham failed to locate comparable sales for the Ivanhoe property, which ultimately sold at auction for 40 per cent above the highest price in their estimated selling range.
CAV’s Underquoting Taskforce, established by the Andrews government in 2022, remains vigilant in its efforts to combat underquoting practices, having issued 48 infringement notices totalling over $520,000 in the 2022-2023 period.
The primary objective of the Taskforce is to ensure that individuals seeking to purchase a new home are equipped with accurate and reliable pricing information, thereby reducing potential harm to one of their most significant investments.
However, it’s not just buyers who are affected. Ethical estate agents, dedicated to providing honest advice to vendors regarding sales strategies and to prospective buyers regarding property prices, also bear the brunt of underquoting’s negative repercussions.
Agents found guilty of underquoting face substantial penalties under the Estate Agents Act 1980, including hefty infringement notices exceeding $11,000, as well as court-imposed penalties reaching $38,000 for each instance of underquoting. Furthermore, agents may incur even higher penalties under the Australian Consumer Law for engaging in misleading or deceptive conduct, with potential fines of up to $10 million for companies and $500,000 for individuals.
If you’re a real estate agency based in Victoria and feeling uncertain about compliance with regulations, there’s no need for it to be daunting. Apex HR offers compliance audits to assess your performance and short courses designed to equip you with practical knowledge and skills that can be immediately applied in your workplace. Get in touch with us for a consultation; we’re eager to explore how we can assist you in maintaining compliance and upholding integrity within the industry.