Consumer Affairs Victoria Crackdown on Underquoting Puts Unlicensed Tactics Under Multi-Million Dollar Threat

Summary

Consumer Affairs Victoria (CAV) has escalated targeted litigation against real estate agencies employing deceptive pricing methods to attract buyers to auctions. A notable recent action involves a prominent agency referred to the Federal Court over alleged underquoting across 11 properties. Under active legislation, corporations face corporate penalties topping $100 million, while individual real estate agents face personal fines of $48,000. Landlords intending to list investments must ensure marketing price guides remain backed by three comparable, documented sales results within a statutory geographic radius.

Key Points

Why it matters: Warns vendors about the legal and financial ramifications of underquoting, helping them assess compliant market appraisal practices before launching campaigns.

Consumer Affairs Victoria (CAV) has escalated targeted litigation against real estate agencies employing deceptive pricing methods to attract buyers to auctions. A notable recent action involves a prominent agency referred to the Federal Court over alleged underquoting across 11 properties. Under active legislation, corporations face corporate penalties topping $100 million, while individual real estate agents face personal fines of $48,000. Landlords intending to list investments must ensure marketing price guides remain backed by three comparable, documented sales results within a statutory geographic radius.

Practical Takeaway

Use this note as a practical prompt before making decisions. Check the rules in your state, keep written records, and seek qualified advice where needed.