A Geelong house passes in on a vendor bid of $910,000 (invented). The agent then advertises the last bid amount. What must the advertisement also state?
Correct Answer
A) That the property was passed in on a vendor bid
Consumer Affairs Victoria says that if a property is passed in on a vendor bid, that fact must be stated in any agent advertising that gives the last bid amount, and by any publisher printing that amount. The auctioneer must also invite the highest bidder to negotiate with the seller first.
Why This Is the Correct Answer
Advertising a pass-in bid must disclose that it was a vendor bid.
Why the Other Options Are Wrong
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- → An agent in NSW quotes a property at $800,000-$850,000 but sets the reserve at $900,000. Three weeks later, the agent receives feedback that most buyers are interested at $820,000-$840,000. What should the agent do to comply with underquoting legislation?
- → In NSW, a buyer signs a private treaty contract for an established home and changes their mind two days later. When can they withdraw, and at what cost?
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- → In NSW, if a property is passed in at auction, what are the vendor's immediate options?
- → In NSW, the auctioneer takes a bid on the vendor's behalf without announcing it as a vendor bid, and the property is then knocked down to a genuine bidder. What is the legal position?
- → On auction morning a NSW vendor tells the auctioneer she will text her reserve price once she sees how bidding goes. What do the auction conditions require?
- → A married couple intend to bid together at a NSW residential auction to buy the house jointly. What registration is required?
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