A Victorian property is advertised at $800,000 to $850,000. Before the auction, the vendor tells the agent the reserve will be $900,000. Under the underquoting laws, what must the agent do?
Correct Answer
A) Revise the estimated selling price and update the advertising and Statement of Information.
Victorian underquoting laws regulate the price an agent quotes, not the reserve. The vendor may set any reserve, but the agent's estimated selling price must be reasonable and not below the price the vendor is prepared to accept. If the vendor's reserve rises above the advertised range, the agent must revise the estimate and promptly update the advertising and the Statement of Information.
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