Estate agency in court over ads

Viewing 5 posts - 1 through 5 (of 5 total)

kaloni
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@kaloni
Join Date: 2003
Post Count: 124
March 9, 2005 - 3:27 pm
http://finance.news.com.au/story/0,10166,12490418-31037,00.html
THE Australian Competition and Consumer Commission has taken a Melbourne real estate agency to court for allegedly placing misleading advertisements.
The Federal Court was told today the real estate agency Gary Peer & Associates Pty Ltd placed advertisements in publications, including Melbourne’s The Age newspaper, advertising a suburban Melbourne house for far less than the market value of the property.
The court was told the house at 341 Glen Eira Road, Caulfield, was advertised in August 2003 as being worth $600,000 plus.
Advertisement:
In September the price range for the four-bedroom house was advertised at $650,000 plus.
The court was told the property owners set a reserve price before the auction of $850,000 which they later revised to $830,000.
They rejected an offer of $805,000 for the house which was passed in at auction in September 2003.
TokyoJoe
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@tokyojoe
Join Date: 2005
Post Count: 60
March 10, 2005 - 1:45 am
Please post the results of this case. I am most interested. Most agents’ magazines that I have seen use a similar practice.
My online investing diary: http://www.retireyoungandwealthy.com/
foundation
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@foundation
Join Date: 2005
Post Count: 1,153
March 10, 2005 - 3:35 am
Well, I hope they get a really hard slap over the wrist![biggrin]
I’ve noticed this is common practise here in Vic. Even the H-Sun in it’s market wrap commonly has:
– Price quoted pre-auction: $400k-$430k
– Auction Result: Passed in on vendor bid $460k
or similar.
It’s no wonder everybody loves REAs!
Cheers, F.[cowboy2]
alwayscurious
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@alwayscurious
Join Date: 2004
Post Count: 80
March 10, 2005 - 9:39 am
Slap on the wrist???
I hope they get a good solid kick in the goolies.
Ie – a big fine.
doubt it though – with the agencies being ‘policed’ by the REIV – who also happen to receive money from teh agencies and are advocates for the agencies.
TokyoJoe
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@tokyojoe
Join Date: 2005
Post Count: 60
March 10, 2005 - 6:52 pm
I have heard of other businesses getting into trouble with this. I am sure there are some strict laws on this. You can’t advertise something for $1 and then when people visit your store charge $10. Any lawyers out there? Please help!
My online investing diary: http://www.retireyoungandwealthy.com/