subscribe to our newsletter
Regulators target unethical property practices

Regulators target unethical property practices

Professionals have been warned they could be fined up to $220,000 if they exploit consumers when selling real estate.

NSW Fair Trading said that regulators from around Australia have been working together to investigate the activities of certain property promoters.

One of the red flags is when spruikers suggest specific investment opportunities, as they may have an undisclosed interest in the transaction, according to Fair Trading.

Other danger signs are “claims of capital growth rates that may not be independent or credible” and “high-pressure sales tactics characterised by rushed decision-making”.

Fair Trading also issued warned about spruikers who push people to buy properties interstate that cannot be seen or off-the-plan properties that don’t yet exist.

It has been revealed that in the past two years 20 professionals have received legal notices requiring them to substantiate claims made in advertisements and at their seminars.

Seven of them subsequently gave legally enforceable undertakings to regulators, promising to modify their behaviour and to stop making misrepresentations.

Fair Trading commissioner Rod Stowe said a common theme reported by regulators is of consumers being misled about the financial benefits of buying into a particular scheme.

“We are sending the message to the industry that they have to act fairly with consumers or face action by consumer law regulators using the Australian Consumer Law,” he said.

“Failure to do so will render the promoter liable for civil and criminal penalties, in some instances up to $1.1 million for a corporation and $220,000 for an individual.”

Regulators target unethical property practices
mortgagebusiness

Latest News

The chairman of the Australian Securities and Investments Commission has said that the corporate regulator will move forward with more “co...

The Senate Standing Committee on Economics is set to review short-term credit providers, payday lenders, consumer lease providers, “buy no...

Weaknesses in the government’s proposed open banking implementation plan could spark a “scaremongering” campaign, a fintech has warned...

FROM THE WEB

podcast

LATEST PODCAST: Emotional intelligence and its role in managerial structure

Is enough being done to ensure responsible lending?