A Melbourne real estate licensee has been fined $600,000 after admitting to nine counts of underquoting following an investigation by Consumer Affairs Victoria.
The former business of Ray White Oakleigh Pty Ltd, trading as Ray White Oakleigh, has been hit with a $600,000 fine by the Federal Court for underquoting on nine properties.
The penalty followed an investigation by the Underquoting Task Force of Consumer Affairs Victoria (CAV), which found that, between February 2022 and November 2023, the agency had deliberately advertised nine properties in Melbourne’s southeast at prices below market value.
CAV said the properties were listed not only “well below” the ultimate selling price but, in some cases, more than 30 per cent down from the expected sale price.
After introducing contracts with an increased commission percentage for any amount over reserve, once vendors signed on, agents at Ray White Oakleigh convinced their clients to lower their reserve price and inflate their commission.
The nine sales generated more than $200,000 in commissions for the agents involved, with former licensee Chris Kelepouris accepting responsibility and assisting CAV throughout the process.
The licensee at the time, Kelepouris, ceased his operations at Ray White Oakleigh and has remained with the network as director of Ray White Ashburton.
A Ray White spokesperson told REB the network agreed that deceptive conduct had no place in the industry and that steps had been taken to ensure compliance going forward.
“As noted in the judgment, our former business owner did not have the systems in place at the time. He has since taken steps to address that deficit.”
The business has since changed hands, with new licensees taking over the office in August 2025.
CAV and Ray White Oakleigh presented text messages to the court showing that agents within the business believed properties would sell for much higher prices.
Justice John Snaden found the branch had engaged in deceptive and misleading conduct and made false and misleading representations.
Snaden ruled that $300,000 of the fine be paid within 15 days of the decision, 24 April, with the further $300,000 to be paid within six months.
CAV director Nicole Rich said that agents who manipulated the sale process for personal gain were undermining the industry’s integrity and would face serious consequences.
“It’s particularly concerning that in this case, Ray White Oakleigh appeared to be aware that they were deceiving both their clients and potential buyers,” Rich said.
“This judgment confirms that the courts take underquoting conduct very seriously and will impose high penalties for breaches.”
“Our underquoting taskforce will continue to pursue estate agencies and agents who try to manipulate property prices.”
The office had previously been under scrutiny from Consumer Affairs Victoria for underquoting, with senior sales executive Nick Strilakos allegedly engaging in the practice over the same period.
The Sydney Morning Herald reported that the proceedings were dismissed in June last year after Strilakos agreed not to sell real estate for a year.
Real Estate Business understands that Strilakos was stood down by Ray White following the network’s investigation into the matter and was subsequently terminated in late 2024.
Strilakos has since taken on the role of head of performance at VICPROP.
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