A Victorian estate agent conducts a property auction where a dummy bidder (vendor bid not declared) is used to inflate the price. Under Victorian law, what are the potential consequences?
Correct Answer
C) Criminal penalties including substantial fines, and the successful bidder may rescind the contract
Using undeclared dummy bids at auction is a criminal offence under Victorian law. The Sale of Land Act 1962 permits vendor bids only if declared by the auctioneer and limited in number. Undeclared dummy bidding can result in substantial fines for both the agent and the dummy bidder, and the successful purchaser may have grounds to rescind the contract.
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