Real estate agent suspended for underquoting

Hot on the the heals of NSW Fair Trading investigating underquoting, a Victorian Real Estate Agent has been suspended for the same practice.

 A Melbourne real estate agent has had his licence suspended for underquoting, following a two-year battle with the state’s watchdog and courts.

The Victorian Civil and Administrative Tribunal withdrew real estate agent Dean Anthony Johnson’s licence for two months, reprimanded him, and ordered him to provide proof for the next two years that he is not marketing properties to would-be buyers at prices below the minimal price set out by the sellers. Mr Johnson is a director  at Footscray-based Wayne Sweeney and Associates.

Mr Johnson had already paid $5000 in fines to the Victorian Property Fund in March 2012, after Consumer Affairs Victoria brought the case against him. VCAT found he had misquoted on four properties in the Melbourne suburbs of Maidstone and Yarraville. Another agent Darren James Dean was also charged by VCAT in 2010, as well.

Mr Johnson successfully appealed the 2010 the judgment to the Supreme Court, which then sent the matter back to VCAT for its latest decision this month.

“Buying a home is usually the biggest financial outlay in a person’s lifetime and laws are in place to protect consumers from misleading advertising and underquoting,” said Consumer Affairs Victoria director Dr Claire Noone.

‘‘Licensed estate agents should be aware of their obligations under the Act and the Australian Consumer Law in relation to advertising properties,’’ she said.

David Leggatt of law firm DLA Piper said Mr Johnson broke the law for not advertising properties in strict compliance with the Estate Agents Act.

"Dean’s error was that he altered the advertising campaign on his client’s instructions, without altering the agent’s authority in writing," Mr Leggatt said.

Mr Leggatt said Mr Johnson advertised four properties at prices outside the range stated in the agent’s authority, with two of the properties selling for less than the advertised price.

Mr Leggatt said no complaint had been filed by the public or Mr Johnson's clients.

Property buyers in Melbourne have long contended that agents underquote prices on properties to lure prospective buyers, although typically there is little hard evidence of the practice.

smh.com.au

New real estate codes of conduct have been issued in WA

We expect this requirement will soon follow for NSW Vendors

The State Government has issued a new code of conduct for the real estate industry in an attempt to curb property fraud.

The change comes after two West Australians recently had their homes sold without their knowledge while they were overseas.

The Commerce Minister Simon O'Brien says from November 1, real estate and settlement agents in WA will have to carry out a 100 point identity verification check, to ensure they are dealing with the rightful seller of a property.

"Both professions are required to be licensed in Western Australia and ultimately of course, if the codes of conduct are not complied with there can be sanctions including a loss of licence," Mr O'Brien said.

"It's simply not good enough that we have scams going on in the future; that's why we want to get ahead of the game with these new changes to the codes of conduct."

The Real Estate Institute of WA says it believes the new code will help deter property fraud.

REIWA's Ian Cornell says the code is necessary, with electronic fraud becoming increasingly sophisticated.

"The measures in place will lift the confidence of both real estate agents, the consumer, the proprietor of the property that we are dealing with the right person and will eradicate to that degree further scams or future scams," he said.

abc.net.au

Real estate agent pays for deception

A MELBOURNE real estate agent has been ordered to pay $200,000 to a celebrity plastic surgeon, whom he deceived into paying an inflated price for a multi-million dollar property.

Doctor Chris Moss bought the property next door to his surgery to prevent any redevelopment that might invade the privacy of his high-profile clients.

But he says he paid an inflated price of $2.7 million for the property after the agent, RT Edgar Toorak director Greg Herman, claimed in post-auction bargaining that another person had made a higher bid.

Dr Moss'S earlier bid of $2.1 million was rejected at the February 2010 auction.

Dr Moss and his skincare specialist wife Andrea John sued the estate agent in the Victorian County Court.

Today, Judge Tim Ginnane awarded the couple $200,000, which is the difference between what the judge found was the fair value of the property and what the couple paid for it.

Outside court, Dr Moss said it was an important day for Victorian home buyers.

“The findings here today have shown that the courts say it is not acceptable for an agent to practise in a way that is deceitful,” he said.

A hearing on costs will take place on November 9.

The Australian