Undertaking by real estate agency over rental income guarantees (Macro Realty Pty Ltd)
A real estate agency and its Directors have provided an undertaking to Consumer Protection over rental income guarantees contained in the advertising of certain properties for sale in Newman.
Macro Realty Pty Ltd, located in East Victoria Park, and Directors Desiree Veronica MacPherson and Renee June Smith have entered into an enforceable undertaking with the Department to remove the guarantees from current advertising and refrain from making guarantees in future advertising after it was found that the agency had no reasonable grounds for guaranteeing the properties could be leased at a certain rate.
Acting Commissioner for Consumer Protection David Hillyard said, without a sound basis, the guarantees are misleading and deceptive.
“To give a guarantee of a certain rate of rental income to a prospective buyer of a property, an agent must have reasonable grounds on which to make that prediction,” Mr Hillyard said.
“The undertaking requires Macro Realty to remove the guarantees from existing advertising and not to make guarantees in any future marketing of their properties.
“This action provides a realistic and meaningful outcome that will ensure future advertising is accurate. If the agency breaches the undertaking, the Department can take immediate court action.
“The purchase of a property is a substantial investment for most people, so their decision as to which property to buy must be based on true and accurate information provided by the owner or their agent.
”Guarantees can be based on the actual rental income that the property attracted within a recent period of time, but must also make a reasonable prediction of future income based on current market trends.”
The undertaking can be viewed at: www.commerce.wa.gov.au/undertakings.
More information on the obligations of real estate agents and sales representatives is available on the Consumer Protection website: www.commerce.wa.gov.au/cp/realestate or enquiries can be made by email: email@example.com or by calling 1300 30 40 54.
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