A NSW house was passed in at auction on the auctioneer's vendor bid of $1.4 million (invented). The next week the agent's online listing says 'Passed in at $1.4m, now for sale'. What is wrong with this?
Correct Answer
A) It must clearly state that the $1.4 million was a vendor bid
If residential property or rural land is passed in at auction and the last bid was a vendor bid, an agent must not indicate the amount of that bid in any statement made in marketing the property unless the statement clearly indicates that it was a vendor bid. The vendor bid and the highest bid accepted must also be recorded in the Bidders Record when the property is not sold.
Why This Is the Correct Answer
Quoting a vendor bid amount in marketing is allowed only if it is clearly identified as a vendor bid.
Why the Other Options Are Wrong
Background Knowledge for Property Marketing
Exam Tip for Property Marketing
Common Mistakes to Avoid on Property Marketing Questions
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- → In NSW, a buyer signs a private treaty contract for an established home and changes their mind two days later. When can they withdraw, and at what cost?
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A NSW agent told several buyers that a development application for the block next door had been withdrawn. A week later the vendor says it has been re-lodged. What should the agent do?
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