Changes to tackle Vic housing under-quotes

VICTORIA'S UNDER-QUOTING CRACKDOWN

WHAT IS UNDER-QUOTING?

Under-quoting is the practice of misleading prospective buyers with an advertised or quoted price less than what is being asked at auction or the agent's estimate.

WHAT CHANGES IS THE GOVERNMENT PROPOSING?

- Agents are banned from advertising properties with 'plus' or `offers over' and advertised prices must be within a 10 per cent price range, such as $500,000 to $550,000.

- An advertised price must be updated within one business day if a written offer higher than the original price is rejected.

- Agents will need to provide a fact sheet to prospective buyers with three recent, comparable sales, the estimated selling price and the median price of the suburb.

WHAT ARE THE CHANGED PENALTIES?

- Fines for failing to comply could double.

- Agents will risk losing any sales commissions and other fees if found guilty of under-quoting.

Source: Victorian government