Helpline runs hot with gripes about estate agents

Jason Dowling the age
September 18, 2010

EVER thought a property you were interested in was underquoted? Not happy with a real estate agent?

You're not alone. More than 10,000 calls were made last financial year to a helpline for those concerned about the conduct of Victorian real estate agents. Consumer Affairs dealt with 661 disputes involving agents, leading to settlements totalling $223,284.

In one case, a consumer paid a holding deposit on a block of land and the block was later sold to another buyer who paid a full deposit.

Other cases include a buyer who was told a property had a lock-up garage when it only had a carport, and a property falsely advertised as having reverse-cycle heating and cooling.

In July, Consumer Affairs conducted a blitz on underquoting that led to two prosecutions. A separate analysis of complaints to Consumer Affairs about misleading pricing ''found possible breaches in nine cases''.

Formal warnings were issued to six agents advertising less than the vendors' recorded asking/reserve price - letters were also sent to two agents ''to educate'' on price advertising.

Civil action was taken against Stockdale & Leggo (Craigieburn/Roxburgh Park) alleging misleading price advertising of three Craigieburn properties. ''One property was advertised as 'private sale: $290,000 plus', despite the authorised sale price being $330,000,'' the Consumer Affairs annual report stated.

Despite the breaches, Real Estate Institute of Victoria spokesman Robert Larocca said agents generally do the right thing.

He said the number of Consumer Affairs inquiries relating to real estate agents had declined, while the number of house sales had increased.