Legal Showdown: Agent vs. Seller in $7,479 Dispute Over Real Estate Practices

Event and Time

Event Description

• Mr. Funston engaged CCSS Pty Ltd (Ascend Real Estate) as his agent for selling the property at 36A Sheehans Road, Blackburn, via a General Sale Authority dated 24 October 2017.
• The sale authority was replaced on 14 November 2017 by an Exclusive Auction Authority with an estimated selling price of $2.1m to $2.2m.
• The property was auctioned on 16 December 2017 but was passed in at a vendor's bid of $2.35 million. Mr. Funston rejected subsequent offers.
• The Agent filed a complaint against Mr. Funston on 14 March 2018 in the Magistrates’ Court of Victoria, seeking reimbursement of marketing expenses totaling $7,479.

Application and Claims

• The Agent provided evidence of incurred expenses and sought payment based on the Auction Authority.
• Mr. Funston denied receiving any invoice and claimed the Agent underquoted the property and breached the Estate Agents Act 1980 (Vic).
• The Magistrates’ Court heard the case as arbitration in October 2019, leading to a ruling favoring the Agent with an awarded amount of $6,643 for expenses.

Judicial Decisions

• The Magistrate found no evidence of underquoting.
• Certain expenses prior to the Auction Authority were excluded from the claim.
• The Magistrate ruled in favor of the agent based on the validity of the expenses claimed post-Auction Authority.

Dispute Points and Legal Basis

Dispute Points

• Mr. Funston's Claims:

- The Agent breached statutory provisions of the Act regarding outgoings and marketing expenses. - Alleged failure to inform him about the expenses being negotiable and accurate representation of expenses was not provided before contract signing. - Claims of unauthorized expenses prior to the Auction Authority.

• Agent’s Argument:

- All claimed expenses were legitimate outgoings as defined under s 4 of the Act. - The requirements under ss 48B, 49A were complied with by providing necessary information and informal communication about negotiations. - Denial of liability by Mr. Funston contradicted by his involvement in negotiations.