Under Victorian underquoting legislation, what is the maximum percentage variance allowed between the quoted price range and the reserve price?

Q: What is the correct answer to: Under Victorian underquoting legislation, what is the maximum percentage variance allowed between the quoted price range and the reserve price?

The correct answer is 10%. Under Victorian underquoting legislation, the maximum percentage variance allowed between the quoted price range and the reserve price is 10%. This means the quoted price range cannot be more than 10% below the reserve price. This regulation was introduced to prevent underquoting practices where properties were advertised at significantly lower prices than their actual reserve, misleading potential buyers and creating unfair auction conditions.

Q: What background knowledge is needed for this Property Marketing question?

Victorian underquoting legislation was introduced to address widespread industry practices where properties were advertised at prices significantly below their expected selling price. The Estate Agents Act 1980 (Vic) and related regulations establish specific requirements for price quoting, including the 10% variance rule. This legislation requires that any quoted price range must be within 10% of the reserve price set by the vendor. The rules apply to all marketing materials and communications with potential buyers. Penalties for breaching these requirements can include fines and disciplinary action. This forms part of broader consumer protection measures alongside Australian Consumer Law provisions against misleading and deceptive conduct.

Q: What is a good way to remember the answer to this Property Marketing question?

Remember 'Perfect TEN' - Victorian underquoting allows a maximum variance of TEN percent (10%) between quoted range and reserve price. When you see any Victorian underquoting question, immediately think 'Perfect 10' and look for the 10% option. This technique works for any question about Victorian price variance rules.

Q: What exam tip applies to this Property Marketing question?

Focus on Victorian-specific legislation percentages and remember that underquoting rules vary between states.

Q: How does this Property Marketing concept apply in Australian real estate practice?

An agent is marketing a property in Melbourne with a quoted range of $800,000-$850,000. The vendor sets a reserve price of $920,000. This would breach the 10% rule as the quoted range is more than 10% below the reserve. The agent must adjust the quoted range to at least $828,000-$878,000 to comply with Victorian legislation. Failure to do so could result in penalties and complaints to Consumer Affairs Victoria.

Question

Property MarketingUnderquoting LegislationVICMEDIUM

Under Victorian underquoting legislation, what is the maximum percentage variance allowed between the quoted price range and the reserve price?

Answer Options

A

5%

B

10%

C

15%

D

20%