The investigators were on alert to detect the illegal practices of deliberately under-quoting to potential buyers, over-pricing to vendors and dummy bidding.
The blitz is the second phase of a Fair Trading investigation which began last month, involving visits to 18 agents in the Northern, Inner West and South-West suburbs of Sydney to check 58 sales files related to auctions.
While the majority of agents were found to be fully compliant in relation to the representations they made to vendors and buyers about selling prices and had kept thorough records to substantiate their estimated selling prices, eight agents were found to be non-compliant.
A total of 17 properties (30% of property files inspected) were affected by the non-compliant agents, with all eight failing to keep paper records of their estimated selling prices.
Fair Trading is now investigating two of the eight non-compliant agents as a result of allegations of false representations made to either the seller or prospective purchaser about the estimated value of a property.
As part of today’s blitz, Fair Trading investigators will interview bidders at the Saturday auctions to determine if the prices quoted to them by agents were within an acceptable range.
Fair Trading Minister Anthony Roberts said purchasing a home was the single most important financial decision most families would ever make and that consumer protection in the property buying market was paramount.
“While most real estate agents are doing the right thing by their vendors and buyers, Fair Trading will continue to weed out the maverick players who persist on dodging around the laws,” he said.
“Home buyers have the right to know that when they attend an auction with the intention to buy a property, the price range the agent has given them previously is honest and realistic.
“They also have the right to feel confident all bidders at the auction are genuine.”
Content coutesy of NSW Fair Trading
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