‘11 properties’: Victorian agency to face court for ‘serious’ underquoting

The watchdog’s Underquoting Taskforce alleged that the agency and Arkan (Andrew) Dimashki, Xiaohong (Anna) Du, and Julie Guiqian Wells underquoted 11 properties and acted deceptively during the sales campaigns.

The agency and its representative have allegedly misled buyers by manipulating estimated selling prices and using online “blind pricing” to make properties appear to be within budget, breaching the Australian Consumer Law.

Additionally, buyer guides allegedly failed to keep pace with market interest, remaining at lower price points despite the agents receiving higher offers from prospective purchasers.

Following an investigation, the Victorian Civil and Administrative Tribunal (VCAT) alleged that communications between sellers and the agency’s representatives suggested underquoting was used as a deliberate sales tactic, with one vendor allegedly told it was “all strategy”.

Investigators also found that the agents allegedly secured “kicker” commission up to five times the base rate once a property exceeded a predetermined sale price, with some homes selling as much as 60 per cent above the advertised range.

Consumer Affairs Victoria is now seeking court orders requiring the companies and the agents involved to publicly acknowledge their conduct, undertake compliance training and pay penalties.

Under the Australian Consumer Law, false or misleading statements relating to land can attract penalties of up to $2.5 million for individuals and $50 million for companies.

The investigation into the agency and its representative followed multiple consumer complaints and was part of a broader underquoting blitz across Melbourne’s inner-north.

In total, more than 30 inspectors visited open homes across Merri-bek and Darebin on the weekend of July 18th to monitor underquoting, check agents’ compliance with sales rules and speak with buyers.

Consumer Affairs Victoria director Nicole Rich said the allegations against the Judd White Group and its agents were one of the most serious cases of underquoting investigated by the Taskforce.

“Home buyers deserve price guides they can trust. Underquoting causes real harm, particularly to first home buyers trying to get a foothold”, she said.

“We’ll continue to stamp out this illegal practice – to protect consumers, hold estate agencies to account, and support confidence in the property market.”

Since its inception, the underquoting taskforce has received more than 8,800 complaints, monitored over 3,200 sales campaigns, and issued more than $3 million in fines.

Minister for Consumer Affairs Paul Edbrooke said that more consumer protection was on the way.

“Victorians are sick of wasting their weekends chasing homes they were never going to get,” Edbrooke said.

From 1 October, agents will have to publish a property’s reserve price at least seven days before an auction or sale, with non-compliant properties barred from going under the hammer.

Additionally, once sold, the property price will have to be made public to ensure buyers can accurately assess the market.

Monash Vision Pty Ltd and Monash Sales Group Pty Ltd, formerly trading as Harcourts Judd White, now operate as Ray White Judd White Group and Ray White (Judd White Group), respectively.