In a situation where a real estate agent provides a comparative market analysis (CMA) that significantly overestimates a property's value to secure a listing, which legal principles under Australian Consumer Law are most relevant?
Correct Answer
A) Misleading conduct, together with a breach of the agent's professional standards
Deliberately overestimating property values in a CMA to secure a listing constitutes misleading conduct under the Australian Consumer Law and breaches professional standards. This conduct misleads vendors about their property's likely sale price and can result in significant penalties and compensation claims.
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In a situation where a real estate agent makes a representation about a property that is technically true but creates a misleading overall impression, this could still constitute a breach of the Australian Consumer Law because:
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