news

Vic government cracks down on dodgy auctions

By Staff Reporter

Auctions in Victoria will come under scrutiny from Consumer Affairs over coming months in a bid to weed out illegal practices.

Director Claire Noone said the government body would be monitoring market activity to ensure transactions were conducted fairly.

“We will be watching for any misconduct during the buying and selling process - from the moment a property is advertised to when deposits are paid and held in trust accounts,” she said.

Consumer Affairs staff will gather market intelligence online, monitor advertising campaigns and attend auctions to check adherence to legislation.

Ms Noone urged buyers to brush up on auction rules, particularly those concerning underquoting.

“Underquoting is when an agent misleads a prospective buyer about the likely selling price of a property for sale,” she said.

“Examples of underquoting are when a property is advertised or quoted to a prospective buyer at a price that is less than the seller’s asking price or auction reserve price, the agent's estimate of the selling price or a genuine offer or expression of interest.”

However, she warned buyers not to jump to conclusions, saying a sale over the asking price did not necessarily indicate under-quoting.

She also reminded bidders that auction sales were unconditional and binding.

“If you buy property at auction you cannot make the contract subject to conditions – for example, getting finance or a building inspection,” she said.

"You can't change your mind - there isn't a cooling-off period on properties sold at auction.”

She encouraged any buyers to do their due diligence and research market prices in the area.

Vic government cracks down on dodgy auctions
SPI logo
Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.
Opps.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Location
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
BLUE BAY 49.18%
2.
PAMBULA 43.5%
3.
BERKELEY VALE 42.74%
4.
POINT PIPER 40.52%
5.
NORTH TURRAMURRA 38.12%