An agent in NSW quotes a property at $800,000-$850,000 but sets the reserve at $900,000. Three weeks later, the agent receives feedback that most buyers are interested at $820,000-$840,000. What should the agent do to comply with underquoting legislation?
Correct Answer
B) Update the quoted range to reflect the reserve, or have the vendor reduce the reserve
The problem existed from the start: the agent advertised $800,000 to $850,000 while the vendor had set a $900,000 reserve, so buyers were told the property could be bought at a price the vendor would not accept. That is underquoting and misleading conduct. The buyer feedback at $820,000 to $840,000 shows the market sits inside the quoted range, which is a reason to talk to the vendor about the reserve. The agent must either raise the advertised range to match what the vendor will accept or get the vendor to lower the reserve to a realistic level.
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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?
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An agent in NSW receives an offer on a property listed for private treaty sale. The agent knows of another buyer who previously expressed strong interest but hasn't yet made a formal offer. What is the agent's legal obligation regarding disclosure?