In WA, how is the seller's reserve price treated at a residential auction?
Correct Answer
D) It is not disclosed to bidders
Consumer Protection WA states that the reserve price is not disclosed to bidders. The property sells to the highest bidder if the bid exceeds the reserve; if it is not met, the property is passed in and the agent may negotiate privately. This differs from Victoria, where since October 2026 the reserve must be published at least 7 days before an auction.
Why This Is the Correct Answer
WA keeps the reserve confidential from bidders.
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?
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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?
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