On 1 January 2016 amendments were made to the Property Stock and Business Agents Act 2002 (“the Act”). The changes to the Act prohibit Real Estate Agents from engaging in the practice of underquoting, which is when an Agent understates the estimated selling price of a Property which can cause interested buyers to waste time and money on inspecting properties, obtaining reports and attending Auctions based on misleading estimates of the selling price.
Agents now have a continuous obligation to ensure that their estimated selling price remains reasonable. If the market changes, the Agent must update the estimate. Evidence must also be provided to support the basis for the estimate.
Agents must no longer use phrasing like “Offers over $500,000” and whenever an Agent quotes the price (single figure or range) they must keep a written record of it for 3 years and include the address of the Property, a time stamp, and the figure(s) quoted.
For further advice concerning Property and Conveyancing, contact the experienced team at Rockliffs Lawyers today.