A Victorian agent quotes a price range of $800,000 to $850,000, but the vendor's reserve is $900,000. Which provisions most directly deal with this conduct?
Correct Answer
C) The underquoting provisions of the Estate Agents Act 1980
This scenario represents underquoting, where the advertised price range is significantly below the vendor's reserve price. Underquoting legislation in states like Victoria prohibits this practice to prevent misleading potential buyers.
Why This Is the Correct Answer
Quoting a range well below the vendor's reserve suggests the agent is not quoting a reasonable estimate of the selling price, which is what the Estate Agents Act 1980's underquoting provisions prohibit. The Australian Consumer Law's general misleading conduct rules may also apply, but the underquoting provisions deal with it most directly.
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Previous 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?
Next Question
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?