An agent advertises a property price guide as '$1.2M - $1.32M' but the reserve is set at $1.4M. Three comparable sales in the area in the past 6 months were $1.35M, $1.41M, and $1.38M. What is the most serious legal issue with this marketing approach?
Correct Answer
D) The advertised range sits below both the reserve and the recent comparable sales.
This represents clear underquoting as the advertised price range ($1.2M-$1.32M) is significantly below both the reserve price ($1.4M) and recent comparable sales evidence ($1.35M-$1.41M). This misleading advertising could result in substantial penalties under consumer protection legislation and demonstrates a failure to provide realistic price guidance based on market evidence.
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An agent advertises a property as 'waterfront' when it's actually 200 meters from the water with no water views. Which regulatory body would primarily investigate this misleading advertising?
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An agent advertises a property with a price guide of '$800,000 - $850,000' but the vendor's reserve is $900,000. What is this practice called?