A Victorian estate agent quotes a residential property at '$750,000 to $800,000' in all marketing. The vendor's reserve price is $900,000 and the agent's own estimated selling price recorded in the authority is $890,000. Which underquoting rule has the agent breached?
Correct Answer
B) The quoted price is below the agent's own estimated selling price in the authority, constituting underquoting
Under Victorian underquoting laws, an agent must not quote a price in marketing that is less than the agent's estimated selling price recorded in the authority or any written offer already rejected by the vendor. Here, the quoted range ($750,000–$800,000) is significantly below the agent's own estimate ($890,000), constituting underquoting.
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A Victorian estate agent receives two written offers on a property: one for $920,000 which the vendor rejects, and a subsequent one for $900,000. The agent's estimated selling price in the authority is $880,000. What is the minimum price the agent may now quote in advertising?