Real estate firm to strengthen practices after alleged underquoting – assurance

A Brighton-based real estate agency and its directors have committed to strengthening its practices after allegedly advertising a property for sale for a price less than the vendor’s acceptable selling price.

Peter F Burns Real Estate had allegedly advertised a property for sale for between $580,000 and $599,000, when the vendor’s acceptable selling price was $590,000.

In a second instance, the business was believed to have acted as land agent for a vendor without recording the agent’s estimated selling price, the vendor’s acceptable selling price or the manner of sale.

Following an investigation by the state’s consumer watchdog, the business, its directors and former sole director, Michael James Burns, entered into a written assurance with Consumer and Business Services – agreeing to ensure that any future likely selling price representations are not less than the prescribed minimum advertising price.

In addition, both the business and directors committed to ensuring all existing and new staff would be properly inducted and trained to identify legal and ethical requirements of Sales Agency Agreements and adhere to all legislative obligations.

Written assurances and undertakings are formal undertakings that may be used in certain circumstances, in place of enforcement actions such as prosecution or disciplinary action.

If an individual or a business fails to comply with the conditions of the Undertaking, they may be prosecuted.

For more information about a real estate agent’s obligations, or to report a concern about a real estate, contact CBS on 131 882 or visit cbs.sa.gov.au

Signed assurance (PDF 197KB)