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
A) Quoting a range below the estimated selling price recorded in the sales authority.
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?