Real Estate Agents under Fair Trading watch

Real Estate Agents under Fair Trading watch

The Office Fair Trading puts real estate agents on notice
OFT has recently received a number of complaints about real estate agencies in a particular area advertising properties with incorrect or misleading information, especially regarding the suburb in which a property is located.

A number of complaints have been investigated and agents put on notice about the consequences of breaching legislation that outlaws misrepresentation in advertising. Agents may see it as relatively harmless to advertise a property as being in a neighbouring suburb which is perceived to be more prestigious than its actual location.  In reality however, this is a clear example of misrepresentation.

Any advertising which contains incorrect information, whether intentionally or otherwise, would constitute a breach of OFT legislation. Penalties up to $1 100 000 currently exist for corporations and $220 000 for individuals who present any false or misleading information.

In a real estate setting there are several factors agents should keep in mind when advertising:

OFT has written to over 70 agents in the area in question alerting them to this final point and the potential consequences of being found to have breached the legislation.

OFT will continue to monitor this issue and not hesitate to investigate likely cases of misrepresentation where they become apparent.

For further information on misrepresentation of information, visit the OFT website.

Logan property agent and company fined – 10/09/12
A Logan property agent and her resident letting company were fined $15 000 in the Beenleigh Magistrates Court (7 September) for 24 breaches relating to a trust account.

Brisbane real estate agent fined for trust account breaches – 31/08/12
A Brisbane real estate agent and her property company were fined $180 000 by the Cleveland Magistrates Court on 23 August for trust account breaches.

Cairns real estate agent and companies fined – 31/08/12
A Cairns real estate agent and his two companies were fined $22 500 in the Cairns Magistrates Court yesterday (30 August) for 58 breaches of the Property Agents and Motor Dealers Act 2000, including 29 unauthorised trust account withdrawals.