Hockingstuart Doncaster face underquoting claims by Consumer Affairs Victoria

Hockingstuart Doncaster face underquoting claims by Consumer Affairs Victoria
Hockingstuart Doncaster face underquoting claims by Consumer Affairs Victoria
There will be court hearings during 2017 after Consumer Affairs Victoria lodged claims against the Hockingstuart, Doncaster agency for alleged underquoting.
 
Victoria’s consumer watchdog alleges the Hockingstuart agency underquoted on nine properties in legal action launched against the office late last year.
 
The claims involve Kenneth John Chappell and Anastasios John Adgemis in relation to nine homes in Melbourne’s east during 2014 and 2015.

The Herald Sun says Chappell is being pursued specifically over the marketing of three homes and Adgemis over two.

CAV will allege the two men advised vendors to advertise their properties for well below what they would accept in order to attract more interest.

One home on Rose Avenue, Templestowe (above) was marketed with an advertised guide of “in excess of $750,000.”

Federal Court documents lodged by CAV claim the vendor had advised they would not sell for less than $900,000.

The property sold for $1.06 million.

A home in Serpells Road, Doncaster East (below) was marketed “in excess of $800,000” at the start of the campaign.

Hockingstuart Doncaster face underquoting claims by Consumer Affairs Victoria

The guide price remained despite interest in the mid to high $900,000s and a $1 million offer, CAV alleges.

It sold for $1.16 million.

The other properties involved were in Doncaster, Doncaster East, Donvale, Templestowe and Templestowe Lower.

CAV is seeking the agency be hit with penalties.

The agency was fined over its Richmond office price guidance last year.

Last year hockingstuart were fined $330,000 when they underquoted properties in Richmond.

Laws aimed at curbing underquoting were passed by the Victorian Parliament last November, with agents required to tell prospective buyers about three recent comparable sales, and the median price for the suburb.

The new laws also ban advertising price ranges of more than 10 per cent.

They also require advertising to be promptly updated if the seller rejects a higher written offer to purchase the property.

 

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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