Hockingstuart

<html><body>
Melbourne real estate agency Hockingstuart has been fined $330,000 fine after admitting to underquoting properties advertised for sale.
The punishment was handed down in the Federal Court with Justice John Middleton saying the matter was serious.
“Price is an essential piece of information about the property being offered for sale for prospective buyers,” he said.
“Buyers should be able to rely on correct information to make an informed decision.”
Simon Jovanovic, CEO of hockingstuart advised he takes "very seriously" the need for his franchisees to accurately price properties in marketing.
"Our Richmond office has already implemented a number of changes including establishing a rigorous in-house compliance program to ensure this doesn’t happen again.
"As Justice Middleton referred to in his judgment, this is a substantial penalty for a company the size of hockingstuart Richmond.
"We are disappointed with the severity of the penalty handed down and the example being made of our Richmond office for what is an issue that impacts the real estate industry as a whole," Simon Jovanovic said.
Sitesh Bhojani, for the director of CAV, told the court one Hockingstuart, Richmond, agent, Daniel Atsis, told a vendor who had expressed concerns about the advertising of his property via email that “unfortunately there’s a culture of underquoting in Richmond. The price range is used more as a marketing tool than an indication.”
The court heard that another implicated agent, Trent Stewart, wrote to a client: “We want to get the best price for you, and the best way to do that is to create an illusion of a bargain”.
The agency admitted to <a href="https://www.urban.com.au/news/56382-hockingstuart-richmond-admit-to-underquoting">misleading and deceiving buyers in 2014 and 2015</a>. It was fined $30,000 for each of the 11 breaches of consumer laws by its Richmond branch associated with houses listed across Richmond and Kew.
“The manipulation of the ‘agent’s estimate of selling price’ for the properties did demonstrate the lengths that Hocking Stuart Richmond went to in creating its enticing (but illusory and misleading) marketing web. There was a conscious decision to engage in the conduct.”.
Victoria Consumer Affairs told the court Hockingstuart misled buyers about 11 properties including 310/59 Coppin Street, Richmond, which sold for $545,000.
The sale of 278 Mary Street, Richmond, for $955,000 in August 2014 was another of the properties investigated. 
Other properties named in the legal action were a two-bedroom apartment in Docker Street, Richmond, which sold for $667,000 and a grand Edwardian in Kew’s Barkers Road, sold for $955,000.
In NSW the major case of alleged underqoting saw the magistrate of Blacktown Local Court dismissing all charges against<a href="https://www.urban.com.au/expert-insights/53886-no-appeal-in-bresicwhitney-underquoting-case" target="_blank"> BresicWhitney Estate Agents Pty Ltd earlier this year</a>.
After a considerably delayed trial, the dismissal came on a technicality concerning the term ‘employee’ in the Property Stock and Business Agents Act 2002 (the Act).
In this case the ‘operating’ arm of the business was the licence holder and undertook the business of a real estate agent.
A subsidiary company ‘employed’ the employees.
As a result the court found the ‘employees’ who made the statements about price, which were less than the estimated selling price in the agency agreement, were not technically employed by the licensed agent.
"This is not the policy intent of the provisions and in his findings the Magistrate acknowledged the likelihood that the business was structured in a way that would insulate it to some degree against liability in the event of such matters," a department spokesperson advised.
The NSW consumer watchdog advised the more serious price discrepancy alleged was at Double Bay, where the publicly published price guidance reputedly did not match the private agency agreement documentation in the office paperwork.
The Murilla apartment at 62/543-545 New South Head Road had a reported price guide of over $1.5 million, but Fair Trading investigations revealed the selling price estimate in the agency agreement at the low end of $1.6 million.
The prosecutions were only the third in a decade. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2015/03/16/cartoon%20march%2016.jpg" alt="">
Source: Sunday Telegraph
 
 
 
</body></html>

jchancellor-FAypfDUnLy

Hockingstuart fined $330,000 for underquoting

<html><body>
The hockingstuart head office is currently working through allegations made by Consumer Affairs Victoria concerning its Richmond franchised office conduct in regard to auction price guidance.
"We are not in a position to discuss the specific details until further progress has been made," the estate agency has advised.
Hockingstuart in Richmond has been taken to court over its auction practices, accused of underquoting on 11 properties in 2014 and 2015, the Channel 7 News reporter Laurel Irving reported.
The properties were in Richmond and one in Kew. According to court documents, a detached Victorian in Mary Street, Richmond; a two-bedroom apartment in Coppin Street, Richmond; a two-bedroom apartment in Docker Street, Richmond were pinpointed.There was also an Edwardian home in Barkers Road, Kew.
The agency said under the current law, while vendors may seek the advice of agents, they are not required to disclose their reserve to agents until the day of auction.
"It can be higher than the advertised price if the interest is strong." the agency noted.
hockingstuart advised it was "a global issue" for the real estate industry.
"hockingstuart head office is willing to work with Consumer Affairs Victoria on a solution that will ensure accurate pricing across the industry as a whole.
"Our head office takes its responsibility to prospective buyers seriously.
"We have a range of measures in place to ensure accurate pricing of our portfolio of properties across the group, including undertaking annual audits at each office and providing regular, rigorous training to new and existing offices.
"Furthermore, we actively encourage vendors to advertise their properties with a price guide to ensure transparency for buyers and sellers alike."
The agency lawyers told the hearing that there had been a "dynamic market."
The agency recently, in unrelated matters,<a href="/news/50117-nigel-o-neil-departs-hockingstuart" target="_blank"> lost its chief executive, Nigel O'Neil</a>, described as a passionate leader with over 25 years experience in growing and developing businesses.
The hockingstuart CEO, Nigel O'Neil was at the helm for eight years.
hockingstuart was the first Victorian real estate agency to present its properties for sale in a magazine format. hockingstuart's red magazine currently has a weekly distribution of 15,000 copies. 
</body></html>

Underquoting claims sees hockingstuart Richmond office in Consumers Affairs Victoria court proceedings

<html><body>
Nigel O’Neil the CEO of hockingstuart has departed after 8½ years’ service.
The formal announcement came late Friday afternoon.
Queries on his departure by Property Observer were deflected during the pre-Christmas party season with the agency's Keep Left publicists issuing a denial from the hockingstuart corporate office.
"To their knowledge, Nigel O’Neil remains in the position as CEO of the network," Keep Left advised, preferring its own announcement timetable. 
The subsequently issued board statement noted Nigel has made a significant contribution to the business during that time having grown the network to be the leading brand in Victoria.  
"The business is significantly stronger due to the development of a solid franchise system and processes that lead the industry.
"He also developed and implemented a number of new business lines including a utility connections service, a finance offering and a strata management operation."  
The board wished Nigel all the best for the future.
</body></html>

Nigel O'Neil departs hockingstuart

<html><body>
Victorian real estate agency hockingstuart has posted total sales figure for the 2014-15 financial year at $4.6 billion from more than 6,300 property sales.
Listings increased by 44% during the same period according to managing director and chief executive officer Nigel O'Neil, who said the agency now had a 14% share of the Victorian auction market.
<div>
Celebrating the network’s 30th anniversary this year, hockingstuart has launched additional businesses to supplement its core real estate offering, such as a <a href="https://www.yourporter.com.au/" target="_blank">utility connections business</a> YourPorter, a home removals business and have plans for a mortgage broker business hockingstuart Finance. 
</div>
<div> </div>
<div>"These not only enhance our service offering for our customers but enable us to become a one-stop shop for everything related to the house hunt,” Nigel O'Neil said.</div>
</body></html>

Hockingstuart

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Hockingstuart

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News