An agent in Victoria provides a price guide of '$800,000 - $880,000' but sets a reserve price of $950,000. Three comparable sales in the area have sold for $920,000, $935,000, and $965,000. What is the most likely regulatory outcome?
Correct Answer
C) Serious underquoting breach with potential fines and penalties
This represents a clear case of underquoting under Victorian legislation. The price guide is significantly below both the reserve price and recent comparable sales, which could mislead buyers about the property's true market value and expected selling price.
Why This Is the Correct Answer
This represents a clear case of underquoting under Victorian legislation. The price guide is significantly below both the reserve price and recent comparable sales, which could mislead buyers about the property's true market value and expected selling price.
About Property Marketing & Sales
Marketing methods, auction process, private treaty, expressions of interest, and advertising regulations.
Study Tips for Marketing & Sales
- • Review the key legislation and regulatory frameworks for your state/territory
- • Practice with scenario-based questions to build real-world understanding
- • Focus on understanding concepts rather than rote memorisation
- • Use memory techniques to retain key definitions and thresholds
More Property Marketing Questions
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In a private treaty sale, when does the contract become legally binding?
What information must be included in property advertisements under Australian Consumer Law?
Which marketing method allows the vendor to negotiate with multiple potential purchasers simultaneously?
Under Victorian underquoting legislation, what is the maximum percentage a property can sell above the quoted price range before penalties may apply?
- → An agent quotes a property at '$800,000 - $850,000' but three comparable sales in the area sold for $920,000, $935,000, and $940,000 respectively in the past three months. What issue does this scenario present?
- → During an auction, when must the auctioneer announce whether the property is 'on the market'?
- → What is the main advantage of a tender sale method over an auction?
- → A property is advertised as having 'stunning harbour views' but the view is only partially visible from one bedroom window and significantly obstructed by neighbouring buildings. The agent has never personally inspected the property but relied on the vendor's description. What are the potential legal implications?
- → An agent conducting an expressions of interest campaign receives five offers ranging from $1.2M to $1.45M. The vendor initially indicated they wanted $1.3M but now wants to negotiate with only the top two bidders and exclude the others. What is the most appropriate course of action?
- → What is the cooling-off period for private treaty residential property purchases in NSW?
- → What is the primary purpose of a reserve price at a property auction?
- → Under private treaty sales, what does 'subject to finance' typically mean in a contract of sale?
- → Which advertising method is most commonly used for residential property marketing in Australia?
- → What is the main difference between an auction and an expression of interest campaign?
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Previous Question
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?
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An agent quotes a property at '$800,000 - $850,000' but three comparable sales in the area sold for $920,000, $935,000, and $940,000 respectively in the past three months. What issue does this scenario present?