Former Glen Waverley agency Harcourts Judd White and three of its agent’s representatives are facing court accused of multiple cases of underquoting.

Consumer Affairs Victoria’s Underquoting Taskforce alleges the agency and Arkan (Andrew) Dimashki, Xiaohong (Anna) Du and Julie Guiqian Wells underquoted 11 properties between them.

They have been taken to court for misleading and deceptive conduct, and making false and misleading representations, in breach of the Australian Consumer Law.

Investigators allege that estimated selling prices and online ‘blind pricing’ were manipulated so that buyers falsely believed homes were within their budget.

A blind price is the indicative price set by an agent on a property listing, that is not displayed publicly.

Communication between sellers and agent’s representatives suggested underquoting was a deliberate sales tactic with one vendor told it was ‘all strategy’.

Despite receiving interest from potential buyers at higher prices, mandatory buyer guides were not adjusted to reflect the market interest.

Vendors were signed up to contracts that provided ‘kicker’ commissions, up to 5 times the base rate, when properties sold above an agreed price – some by as much as 60% above the advertised range.

Consumer Affairs Victoria Director Nicole Rich said the allegations represented one of the most serious cases of underquoting investigated by the Taskforce.

‘Home buyers deserve price guides they can trust. Underquoting causes real harm, particularly to first home buyers trying to get a foothold’, she said.

‘We’ll continue to stamp out this illegal practice – to protect consumers, hold estate agencies to account, and support confidence in the property market.’

Consumer Affairs Victoria is asking the court to order the companies and agent's representatives to publicise their actions, complete training and pay penalties.

Penalties for making a false or misleading statement in relation to land under the Australian Consumer Law are up to $2.5 million for an individual and $50 million for a company.

The matter is listed for a hearing in the Federal Court on 4 September.

Monash Vision Pty Ltd (ACN 095 423 153) and Monash Sales Group Pty Ltd (ACN 668 620 317) both traded as Harcourts Judd White. The 2 companies now operate as Ray White Judd White Group and Ray White (Judd White Group), respectively.

The investigation into Harcourts Judd White followed consumer complaints. If you think you’ve seen underquoting, report it to us.