Underquoting prohibition (Vic Estate Agents Act 1980)
Vic real estate agents must not underquote a property sale price.
Who must comply
Estate agents in Victoria advertising or selling residential property, including by auction or fixed-date sale. Sellers as well as agents are prohibited from misrepresenting a property in advertising or marketing.
What triggers it
Signing a sales authority for a Victorian residential property and every price statement made during the campaign: advertising, the Property Price Statement, and verbal or written answers to buyers.
When due
Estimate set in the sales authority at engagement; Property Price Statement available whenever the property is advertised, given to a buyer within 2 business days of a request, and linked beside the price in online advertising; reserve price published at least 7 days before an auction or fixed-date sale; sale price added within 7 days of the sale going unconditional.
Evidence required
Sales authority with a reasonable estimated selling price and the comparable-sales research behind it; current Property Price Statement showing the price or range, key features, three comparable sales (or why fewer) and the suburb median; records of written offers and seller instructions on reserve; dated versions of advertising updated or withdrawn when the price changed; proof the reserve was published for the full 7 days.
Max penalty
Consumer Affairs Victoria uses warning letters, enforceable undertakings, injunctions and prosecutions against agents who underquote; an auction or fixed-date sale cannot proceed unless the reserve has been published for the full 7-day period. Statutory penalty amounts were not restated here.
Who must comply with this? The applicability test by industry, business structure and size.
Summary
Victorian estate agents must not advertise or tell a buyer a price below the seller's reserve or asking price, below a written offer the seller has already rejected as too low, or below the agent's current estimated selling price, and must update price information whenever any of these change. The estimate in the sales authority must be reasonable and based on comparable sales. Advertised prices must be a single figure or a range of no more than 10 per cent, without words or symbols such as 'from', 'offers above' or '+'. From 1 October 2026 the Property Price Statement replaces the Statement of Information; for auctions and fixed-date sales from 16 October 2026 agents must publish the seller's reserve price at least 7 days beforehand, and must publish the final sale price once a sale becomes unconditional.
Enforced by
Topics
Related
- NSWUnderquoting prohibition (NSW Property and Stock Agents Act 2002)NSW real estate agents must not underquote — Maximum penalty $22,000.
- VICComply with Residential Tenancies Act 1997 (VIC)VIC RTA 1997 (significantly amended 2021) — minimum standards, pets, no-fault terminations reformed.
- VICDomestic Building Contracts Act 1995 (Vic) — warrantiesVic domestic building contracts include statutory warranties + insurance requirements.
- CWLTHDesign and Distribution Obligations (DDO) — RG 274Issuers + distributors of retail financial products bound by DDO from 5 October 2021.
- CWLTHHold a current real estate agent licence (state-specific)Selling agents must hold a current licence issued by their state fair trading regulator.
- CWLTHHold AER authorisation as energy retailerSelling electricity or gas to small customers requires AER retailer authorisation.
Frequently asked questions
- Who must comply with Underquoting prohibition (Vic Estate Agents Act 1980)?
- Estate agents in Victoria advertising or selling residential property, including by auction or fixed-date sale. Sellers as well as agents are prohibited from misrepresenting a property in advertising or marketing.
- What triggers Underquoting prohibition (Vic Estate Agents Act 1980)?
- Signing a sales authority for a Victorian residential property and every price statement made during the campaign: advertising, the Property Price Statement, and verbal or written answers to buyers.
- When is Underquoting prohibition (Vic Estate Agents Act 1980) due?
- Estimate set in the sales authority at engagement; Property Price Statement available whenever the property is advertised, given to a buyer within 2 business days of a request, and linked beside the price in online advertising; reserve price published at least 7 days before an auction or fixed-date sale; sale price added within 7 days of the sale going unconditional.
- What is the maximum penalty for Underquoting prohibition (Vic Estate Agents Act 1980)?
- Consumer Affairs Victoria uses warning letters, enforceable undertakings, injunctions and prosecutions against agents who underquote; an auction or fixed-date sale cannot proceed unless the reserve has been published for the full 7-day period. Statutory penalty amounts were not restated here.
- What evidence is required for Underquoting prohibition (Vic Estate Agents Act 1980)?
- Sales authority with a reasonable estimated selling price and the comparable-sales research behind it; current Property Price Statement showing the price or range, key features, three comparable sales (or why fewer) and the suburb median; records of written offers and seller instructions on reserve; dated versions of advertising updated or withdrawn when the price changed; proof the reserve was published for the full 7 days.
Source: https://www.consumer.vic.gov.au/housing/buying-and-selling-property/understanding-property-prices-and-underquoting-for-buyers. Rules Mate is not a law firm. Always verify against the live regulator source before acting.