Vic agency denied extra time to pay fine

A real estate agency fined in Victoria's largest underquoting penalty has been refused an extension of time to pay, with the Federal Court saying a strong message needs to be sent to the industry.

The Hocking Stuart Richmond office was found to have manipulated 11 house price estimates in the sought after areas of Richmond and Kew between January 2014 and June 2015.

In October, the Federal Court ordered that the branch pay a $330,000 penalty plus $80,000 in costs, in instalments, and gave it two years to pay.

However the agency asked the court for an extra year and one month on top of that, saying it was in a precarious financial position.

The franchise argued the two-year deadline to pay the penalty was beyond its means and would render the business insolvent.

But Federal Court Judge John Middleton on Friday ruled the request "excessively long".

He said the 30 December 2018 deadline sought by Consumer Affairs Victoria - which brought the action - seemed reasonable and should stand.

Judge Middleton said extending the time frame would diminish the impact of the penalty, which had to deter others in the real estate industry from similar behaviour.

"The court must not overlook the seriousness of the contravention," he said.

Underquoting is a significant problem for Victorian home buyers, the state regulator has warned.

The Federal Court earlier found Hocking Stuart Richmond intended to deceive home buyers with the illusion of a bargain and drive up its profits.