A Hornsby house passes in at auction on a vendor bid of $1.1 million. The agent's next email to buyers says 'Passed in at $1.1 million – now for sale by private treaty.' What does the Act say?
Correct Answer
C) It is an offence unless the email clearly says $1.1 million was a vendor bid
Section 76A of the Property and Stock Agents Act 2002 says that when residential property is passed in and the last bid accepted was a vendor bid, an agent must not, in marketing, state the amount of that bid unless the statement also clearly indicates it was a vendor bid. There is a defence if the agent did not know and had no reasonable cause to suspect it was a vendor bid.
Why This Is the Correct Answer
The amount came from a vendor bid, so quoting it without saying so breaches s 76A.
Why the Other Options Are Wrong
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A buyer arrives to register at a NSW residential auction with only her overseas passport, which does not show her address. What will allow her to register?
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