Prestigious real estate agency Kay & Burton has its fines withdrawn for undervaluation
Samuel of Kay & Burton welcomed the decision.
“We always act with the utmost integrity and were confident that this was never a case of breaching legislative requirements,” he said.
Morrell still believed the Armadale home had been underpriced due to the auction result and the property’s price range.
“Rose Street was the most disgraceful sub-quote I’ve seen for the year and CAV’s response is beyond disappointing,” he said Tuesday, comparing the response to “a slap in the face with a wet lettuce”.
When a property is offered for sale, estate agents must prepare an “information statement” including an indicative sale price for the property, either as a single price or a price range of up to at 10%.
Underpricing can occur when a property is advertised for less than the estimated sale price, is lower than the seller’s asking price, or has already been rejected by the seller. However, underestimation is difficult to prove.
CAV declined to comment on the matter.
The watchdog issued 47 infractions and 151 official warnings to eight estate agents for underpricing between July 2021 and June 2022.
CAV has sued and accepted binding undertakings from 13 real estate agencies regarding underselling since 2015, with fines and legal costs totaling more than $3 million.
The Victorian government is in the process of reviewing laws on underpricing and the conduct of estate agents.
Real Estate Institute of Victoria chief executive Quentin Kilian did not comment on Kay & Burton’s case, but said the body was adamant its agents must follow correct policies and procedures when it comes to underwriting. -estimate.
“The buyer’s version of an overpriced property is often when they’ve missed an auction, or once market forces…have taken it to a level they didn’t expect,” said he declared.
“Simply labeling every incident of a buyer-not-getting-the-property-they-wants as an improper process is a bit absurd.”