Under Victorian underquoting legislation, within what timeframe must an agent revise their advertised price range if they receive a written offer 10% or more above the top of the range?

Q: What is the correct answer to: Under Victorian underquoting legislation, within what timeframe must an agent revise their advertised price range if they receive a written offer 10% or more above the top of the range?

The correct answer is Within 3 business days of receiving the offer. Option B is correct because Victorian underquoting legislation specifically mandates that agents must revise their advertised price range within 3 business days of receiving a written offer that is 10% or more above the top of the advertised range. This timeframe is established in the Estate Agents Act 1980 (Vic) and related regulations. The 3 business day period provides agents with sufficient time to properly assess the offer, consult with vendors, and update all marketing materials while ensuring price guides remain current and accurate for prospective buyers.

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

Victorian underquoting legislation is part of consumer protection measures in real estate marketing. Under the Estate Agents Act 1980 (Vic) and supporting regulations, agents must provide accurate price guidance to consumers. The legislation defines specific triggers for price range revisions, including receiving written offers 10% or more above the advertised range. This requirement aims to prevent underquoting, where properties are advertised at artificially low prices to generate interest but sell for significantly higher amounts. The 3 business day revision requirement ensures price guides reflect genuine market response while giving agents reasonable time to update marketing materials across all platforms.

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

Remember '3 Days to Update' - when an offer comes in 10% above the top range, you have 3 business days to revise. Think of it like a '3-day weather forecast' - just as weather forecasts need updating when conditions change significantly, price guides need updating when market conditions (offers) change significantly. When you see underquoting revision timeframe questions, immediately think '3-Day Rule' for Victorian legislation. Look for the 3 business days option when the question involves offers 10% or more above the advertised range.

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

For Victorian underquoting questions, remember the key trigger is a written offer 10% or more above the top range, and the response time is always 3 business days. Don't confuse this with other timeframes in real estate legislation.

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

An agent advertises a property with a price guide of $800,000-$880,000. On Tuesday, they receive a written offer of $970,000 (more than 10% above $880,000). The agent must revise their advertised price range by Friday (3 business days later). They update all online listings, print advertisements, and inform their sales team of the new price guide of $900,000-$980,000 to ensure all future marketing accurately reflects the demonstrated market interest and prevents misleading potential buyers about the property's likely selling price.

Question

Property MarketingUnderquoting LegislationVICHARD

Under Victorian underquoting legislation, within what timeframe must an agent revise their advertised price range if they receive a written offer 10% or more above the top of the range?

Answer Options

A

Within 24 hours of receiving the offer

B

Within 3 business days of receiving the offer

C

Within 7 days of receiving the offer

D

Before the next scheduled inspection