PHOTO: Kay & Burton
Melbourne real estate agency Kay & Burton has been slapped with a $9913 fine for underquoting an Armadale property that sold for $5.8 million at auction in March – $1.4 million above the top of the asking price range.
It was part of almost $30,000 in fines the company was issued by Consumer Affairs Victoria (CAV) for breaching real estate laws, as Melbourne house prices have soared during the coronavirus crisis. The agency has denied the claims and will fight the fines.
CAV issued the fine for stating a selling price less than the estimated selling price for the fixer-upper at 62 Rose Street, Armadale.
In the infringement notice seen by Domain, CAV said Kay & Burton had stated a selling price, or likely selling price, of $3.8 million to $4.1 million that was “less than the lower limit of the estimated selling price range of $4 million to $4.1 million in the engagement or appointment to sell”.
By auction day the price guide had been updated to between $4 million and $4.4 million, and the four-bedroom home covered by a heritage overlay then sold for $1.4 million above the top of that guide.
The house was bought by a family looking to upsize, one of six active bidders for the property.
After the sale, Morrell and Koren buyer’s agent David Morrell lodged a formal complaint against Kay & Burton selling agent Grant Samuel to the consumer watchdog.
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