Real Estate Agent Complaints

A claim by the Minister for Consumer Affairs, JohnLenders, that there had been a rise in complaints against estate agents has been questioned by the Real Estate Institute of Victoria, describing the report as “blatantly misleading”. Minister Lenders stated that the specialist advice and conciliation service “had seen a substantial increase in the number of calls in its second year” noting that calls to the Estate Agents Resolution Service were up 2036 from the previous year “suggesting more estate agents need to adhere to higher standards of service and professional conduct”. However, Mr Raimondo, CEO, REIV said “Consumer Affairs Victoria (CAV) figures show there are, in fact, fewer written complaints than last year with 871 written complaints, or five per cent less than the 916 reported last year.” He also pointed out that Minister Lenders had acknowledged the drop in the number of written complaints was encouraging. “The figures further demonstrate a lower proportion of calls led to written complaints. Last year 8,488 calls led to 916 written complaints or 10.8 per cent. This year 10,524 calls led to 871 written complaints or 8.3 per cent. The Minister does not reveal how many of these complaints led to action by CAV. “The number of complaints is very small when considered in the context of over 150,000 sales transactions and nearly 300,000 rental transactions per annum” he said. Mr Raimondo added “any suggestion complaints have increased is blatantly misleading. Just because the number of calls has increased, it doesn’t mean complaints have. “We understand many of these calls are simply enquiries made by estate agents and members of the public, and cover the period before and after the introduction of the new legislation on February 1, 2004. The rise in the number of calls from 8,488 to 10,534 may also simply reflect an increased awareness of the service, given publicity surrounding the new legislation.” In the CAV report Minister Lenders had acknowledged that more consumers were now aware of the service. Mr Raimondo also expressed concerns that the Minister’s media release could foster ill-will toward the industry, when the level of written complaints had in fact decreased. “It is a deliberate distortion of the figures.” He said “if ever there was going to be a rise in the number of written complaints against agents it would be now, given the increased regulation of the industry. This hasn’t happened. “The industry is, in fact, in better shape than at any time in its history. Complaints are down, aided by a comprehensive education campaign conducted by the REIV for its members on the new legislation and on standards of conduct, and from 1 July 2004 REIV members have been required to comply with Continuing Professional Development.”