The state government is cracking down on underquoting and aiming to making auctions fairer, with an autumn inspection blitz kicking off this month..
Consumer Affairs Minister Nick Staikos joined more than 20 inspectors on Saturday, March 15 before they headed out to more than 50 auctions across Doncaster and surrounding suburbs following complaints about real estate agent conduct in the area.
The blitz comes after the state introduced a permanent taskforce last year.
Since launching, it has monitored more than 2300 sales campaigns and attended 226 auctions.
It has also issued more than 220 official warnings and more than 160 fines totalling $1.8 million to agents caught breaching their obligations.
Taskforce officers who attend auctions will speak with estate agents and buyers, check for compliance with auction and sales rules, and monitor for potential underquoting.
Multiple court proceedings for serious breaches have also been launched, and other cases are currently under investigation.
Underquoting remains a significant concern facing homebuyers and is the top real estate sales issue people contact Consumer Affairs Victoria about.
Mr Staikos said that the new laws will further protect Victorians – with increased fines for underquoting offences and mandatory training for real estate agents and property managers.
“Buying a house is already stressful enough, without the worry of also having your dreams dashed at the first hurdle by illegal underquoting,” Mr Staikos said.
Since September 2022, Consumer Affairs Victoria has received more than 3740 complaints. Reports are made not only by purchasers – more than 30 per cent of reports in 2024 were from other estate agents, showing that agents are doing the right thing also want this practice stamped out.
The Consumer and Planning Legislation Amendment (Housing Statement Reform) Bill 2024, which passed this month, will increase the maximum penalty for underquoting and other related breaches to $47,422.
The bill will also require real estate agents and property managers to undertake ongoing professional development.
Underquoting can also breach the ban on misleading and deceptive conduct and false representations under the Australian Consumer Law, with maximum penalties of $2.5 million for individuals and $50 million for companies applying.
Victorians are encouraged to report suspected instances of underquoting to Consumer Affairs Victoria.
Details: consumer.vic.gov.au/underquoting
