I hope they get what they deserve.From the Herald SunHouse price...

I hope they get what they deserve.

From the Herald Sun

House price under-quoted, ACCC claims
By Kate Jones
property reporter
06dec03

A CAULFIELD real estate agent accused of under-quoting a house price by $181,000 faces legal action in the Federal Court.

Gary Peer and Associates Pty Ltd advertised a Caulfield home for $600,000-plus and a week later at $650,000-plus, the Australian Competition and Consumer Commission claims in court documents.
The consumer watchdog alleges the Glen Eira Rd house was passed-in at a September auction this year for $781,000.

The ACCC alleges Gary Peer and Associates Pty Ltd engaged in "misleading and deceptive conduct". The ACCC is not seeking to have the company fined if it is found to have breached the Trade Practices Act.

But Gary Peer and Associates Pty Ltd could be forced to pay the ACCC's legal costs and be subject to an injunction if the claim is upheld.

As first revealed in the Herald Sun, buyer's advocate David Morrell lodged a complaint with the ACCC following the September auction of the four-bedroom house.

In his letter of complaint, Mr Morrell said the reserve price of the property was $850,000.

Mr Peer yesterday denied the ACCC's allegations and said the circumstances of the sale were difficult and unusual.

"It should be noted the property at the present date remains unsold," Mr Peer said.

"The company acted at all times with the vendor's best interests in mind.

"Gary Peer and Associates acts and has acted with honour and integrity at all times."

Under-quoting – the practice of advertising properties below the sale value – will be outlawed by state legislation from February.

Guilty agents face fines of up to $20,000. Under the Real Estate Institute of Victoria's ethical guidelines, agents are advised to quote property prices within 10 to 15 per cent of the sale price.

Institute chief executive Enzo Raimondo said he had warned 3000 agents not to deliberately under-quote properties.

"We don't condone deliberate under-quoting and our members are aware they should not do it," Mr Raimondo said.

The ACCC case against Gray Peer and Associates is listed to begin on February 2 in the Federal Court in Melbourne.