Who must comply with Underquoting prohibition (Vic Estate Agents Act 1980)?

Vic real estate agents must not underquote a property sale price.

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.

Applies when the business has industry: Real estate agents.

How the regulator frames it: 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.

Jurisdiction: Victoria law only. A business with no operations in VIC is outside it, whatever the rest of the test says.

Outcome across the 35 industries Rules Mate maps (1 of 35: yes; 34 of 35: no).

Structure does not change the answer in real estate agents: for every structure the answer is "yes".

Size does not change the answer in real estate agents: at every size band the answer is "yes".

Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:

• Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: applies. Industry: Real estate agents.
• Pty Ltd company in accountants & bookkeepers with 6–19 employees, turnover $1M–$3M: does not apply. Requires industry: Real estate agents.

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.

Frequency

Ongoing

Evidence to keep

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.

Status

Current

Priority

High

Maximum 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.

Rules Mate has not yet classified the audit or assurance level for this obligation. Any audit, review or certification requirement is set by the regulator source listed below.

If this obligation applies to you, so does this one: the engine uses the same rule for each.

• Underquoting prohibition (NSW Property and Stock Agents Act 2002)

Across the 1,890 business profiles Rules Mate evaluates, these obligations apply to most of the businesses this one applies to, and are far more common among them than among businesses generally:

• Hold a current real estate agent licence (state-specific): applies to 100% of the same businesses (35.0× the overall rate)
• Designate an AML/CTF Compliance Officer: applies to 100% of the same businesses (4.4× the overall rate)
• Enrol with AUSTRAC as a reporting entity: applies to 100% of the same businesses (4.4× the overall rate)
• Maintain a written AML/CTF program: applies to 100% of the same businesses (4.4× the overall rate)
• Detect + enhance due diligence on Domestic + Foreign PEPs: applies to 100% of the same businesses (4.4× the overall rate)

Rules Mate tracks 4 published obligations tagged "real estate", 1 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 0 of those apply outright. This obligation is rated high priority, and is an ongoing duty.

Regulated by Consumer Affairs Victoria.

Consumer Affairs Vic: Victorian consumer protection, business licensing, tenancy, and incorporated associations regulator.

• Consumer Affairs Victoria

Free tools that help with this obligation:

• Compliance calendar builder