The former owner of Ray White Oakleigh has been ordered by the Federal Court to pay $600,000 for misleading property sellers and buyers.

Consumer Affairs Victoria’s Underquoting Taskforce investigated the agency after multiple complaints.

Between February 2022 and November 2023, White Ray Oakleigh Pty Ltd (trading as Ray White Oakleigh) advertised 9 properties in Rowville, Mulgrave, Bentleigh East and Blackburn South at well below market value.

Its contracts with vendors often included a standard commission for when the property sold up to the vendor's reserve, but much more for any amount above – up to 25%. After vendors signed, agents convinced them to re-set a lower reserve –- inflating their commissions when the property sold for more.

Ray White Oakleigh deliberately advertised the properties not only well below the ultimate selling prices, but at prices it didn’t believe the properties would sell for.

Consumer Affairs Victoria and Ray White Oakleigh presented text messages to the court between agents, showing they believed properties would sell for considerably higher prices.

Justice John Snaden noted the likely harm caused to the vendors and to prospective buyers wasting time and resources. He found Ray White Oakleigh had engaged in misleading and deceptive conduct and made false and misleading representations.

The company has not operated Ray White Oakleigh since 2025. It admitted the conduct and cooperated with Consumer Affairs Victoria in the court proceedings.

Consumer Affairs Victoria Director Nicole Rich welcomed the penalty.

"Selling someone’s home is a great responsibility. Agents who manipulate the process for their own gain are undermining the integrity of the industry, and can expect to face serious legal consequences," she said.

"It’s particularly concerning that in this case, Ray White Oakleigh appeared to be aware that they were deceiving both their clients and potential buyers.

"This judgment confirms that the courts take underquoting conduct very seriously and will impose high penalties for breaches.

"Our underquoting taskforce will continue to pursue estate agencies and agents who try to manipulate property prices."

If you come across practices in the property market you think are suspicious, including underquoting, report them to Consumer Affairs Victoria.