Melbourne Real Estate Agency Fined $600,000 for Underquoting Nine Properties
Introduction
A real estate agency in Melbourne, Ray White Oakleigh, must pay $600,000. The Federal Court gave this fine. The agency told people that houses cost less than their real price. This is called underquoting. The agency did this for nine houses in 2022 and 2023.
Main Body
The court said the agency was wrong. It gave wrong information to people. The agency said some houses cost 30% less than the real price. People looked at these houses. They spent time and money. But the houses sold for more money. The agency made more than $200,000 from these sales. The judge looked at the company. It is a small business. It made $4 million last year. But its profit was only $215,000. The judge also said the agency did this on purpose. It was the first time the agency did something wrong. The agency now has new owners. They started in August. The old owner, Chris Kelepouris, still works for Ray White. Ray White now uses new computer systems. These systems help find problems. A different agent, Nick Strilakos, also had problems. He agreed to stop selling houses for one year. He also took a class about prices. The government started looking at this agency after many people complained. The government minister, Paul Edbrooke, said this fine is a big win. It tells people that underquoting is not allowed. The government wants to change the law. Sellers must tell the lowest price before a sale. They must give free building and pest reports. They cannot hide the sale price.
Conclusion
The Federal Court fined the old owner of Ray White Oakleigh $600,000. This is the biggest fine for underquoting. The agency has new owners now. They are using new rules to follow the law.