An agent quotes a property at $800,000-$880,000 but knows the vendor will not sell for less than $950,000. What legislation has likely been breached?
Correct Answer
B) The Australian Consumer Law, plus the state's specific underquoting law where one exists.
Quoting $800,000 to $880,000 when the agent knows the vendor will not accept less than $950,000 is misleading conduct under the Australian Consumer Law, which is Schedule 2 of the Competition and Consumer Act 2010. In NSW and Victoria it also breaches specific underquoting laws; the other states rely on the ACL and their agent conduct rules.
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Previous 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?
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An agent receives three written offers on a property listed for private treaty sale. What is the agent's legal obligation?