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Price Representations

27 Nov 14

As you are aware, REISA has launched its Underquoting Advisory Panel.

It is therefore timely to remind Members of their obligations under section 24A of the Land and Business (Sale and Conveyancing) Act 1994.

If you make a representation (either verbally or in writing) as to a likely price, the price must be expressed as a single figure without any qualifying words or symbols.  The price must also not be less than the prescribed minimum advertising price.

If you make a representation (either verbally or in writing) as to a likely price range, the range must be expressed using 2 single figures with only such words or symbols as are necessary to denote the range.  The lower figure of the range must not be less than the prescribed minimum advertising price and the upper figure of the range must not exceed 110% of the lower figure.

REISA must take a conservative view of the legislation.

REISA considers that the following examples are in breach of the above legislation:

  • Offers considered over $400,000
  • Lots ranging from $400,000
  • Properties ranging from $400,000 to $1m
  • Price guide $400,000
  • Price guide $400,000 - $440,000
  • Advising purchasers of comparable sales (if one of the sales is less than the prescribed minimum advertising price and / or if the range of sales exceeds the 10% limit rule).

You should further note that this is a prescribed offence which could lead to a $20,000 fine, imprisonment for 1 year, loss of commission and disqualification from being registered as an agent or sales representative.

If you have any questions about this, please call Paul Edwards at REISA on 8366 4362 for further clarification.

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