A Melbourne real estate agency has been fined $600,000 after admitting to underquoting nine properties during sales campaigns in 2022 and 2023.
The Federal Court found the former licensee of Ray White Oakleigh, White Ray (Oakleigh) Pty Ltd, engaged in misleading and deceptive conduct by advertising homes at prices it knew were significantly below their expected market value.
The agency’s former licensee, Chris Kelepouris, oversaw the business before it came under new ownership. In some cases, properties were advertised at more than 30 per cent below the prices agents expected they would achieve, with homes ultimately selling for much higher amounts.
Justice John Snaden said the conduct created false expectations among buyers, potentially leading them to spend time and money investigating properties they may never have realistically secured.
The court heard the agency earned more than $200,000 in commissions from the sales, including bonuses tied to properties selling above reserve.
A spokesperson for Ray White said the Oakleigh office has operated under new ownership since August and acknowledged that inadequate compliance systems existed under previous management.
Former Ray White Oakleigh agent Nick Strilakos was also previously investigated by Consumer Affairs Victoria over alleged misleading conduct. Proceedings against him were dismissed last year after he agreed not to sell real estate for 12 months and undertake additional training.
Kelepouris remains within the Ray White network as founder and principal director of Ray White Ashburton.
Victoria’s Consumer Affairs Minister Paul Edbrooke described the ruling as a “big win” for the regulator’s underquoting taskforce.
Source: Sydney Morning Herald.
