Underquoting can occur when a property is advertised at a price that is less than the estimated selling price, the seller's asking price, or at a price already rejected by the seller.
On 1 May 2017, changes to the Estate Agents Act 1980 came into effect to strengthen laws against underquoting in Victoria. These laws apply to residential property sales.
All Victorian estate agents and agents' representatives have additional obligations relating to:
- the estimated selling price
- comparable property sales
- Statement of Information for prospective buyers, and
- advertising prices, terms and symbols.
Stiff penalties apply to agents who do not comply to these laws. For more information: https://www.consumer.vic.gov.au/underquoting