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.
Why This Is the Correct Answer
The quoted range sits well below both the recent comparable sales and the vendor's reserve, so it does not reflect a reasonable estimate of the selling price. That is underquoting under the Estate Agents Act 1980, which can attract substantial fines, loss of commission and disciplinary action.
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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?
Next Question
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?