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) A serious underquoting breach that can attract substantial 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.
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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 initially quotes a property at '$1.2M+' but after receiving three comparable sales showing higher values, wants to revise the quote to '$1.35M to $1.4M'. What is the most appropriate course of action under underquoting legislation?