Underquoting: Consumer Affairs Victoria Has Agents in Its Sights
/ David Dawn
Underquoting:
Consumer Affairs Victoria Has Agents in Its Sights
The final selling price is not the whole story. What matters is what the agent knew, what evidence supported the price, and whether the campaign was properly reviewed as circumstances changed.
Underquoting has been talked about in Victoria for years, but the regulator is making it increasingly clear that this is not an area it intends to leave alone.
On 18 July 2026, Consumer Affairs Victoria announced Federal Court proceedings against a former real estate agency and three agents' representatives concerning the alleged underquoting of 11 residential properties.
Consumer Affairs Victoria alleges that estimated selling prices and online blind pricing were manipulated so prospective purchasers believed properties were within their budgets.
However, the case provides an important lesson for every Victorian agent.
The final selling price is not the whole story
A property selling substantially above its advertised range does not automatically mean that underquoting has occurred.
Anyone who has attended a competitive auction knows that two determined purchasers can move a property well beyond expectations.
Under Victoria's underquoting requirements, an advertised price cannot be lower than the agent's estimated selling price, the seller's asking price, or a price the seller has already rejected as being too low.
That means the Statement of Information and advertised price should not be treated as documents that are prepared at the beginning of a campaign and then forgotten.
They need to reflect the information available to the agent as the campaign develops.
What will an investigator look at?
If Consumer Affairs Victoria examines a campaign, the investigation is unlikely to stop at the final sale price.
The regulator may look at the entire history of the campaign, including:
- the comparable properties relied upon and why they were considered comparable
- the agent's original estimated selling price
- the vendor's expectations and instructions
- written offers received during the campaign
- offers rejected by the vendor
- feedback received from prospective purchasers
- CRM notes, emails and text messages
- changes in buyer interest during the campaign
- discussions regarding the reserve or expected selling price
- when the Statement of Information and advertising were reviewed or changed
The latest Consumer Affairs Victoria proceedings
The proceedings announced on 18 July 2026 are another indication that Consumer Affairs Victoria is prepared to closely examine how agents arrive at estimated selling prices and how those prices are communicated to prospective purchasers.
They follow other significant enforcement activity in this area.
In April 2026, in a separate matter involving the former owner of Ray White Oakleigh, orders were made requiring payment of $600,000.
Agents should therefore assume that quoting practices, supporting evidence and the internal history of a campaign can all become relevant if a file is investigated.
Rejected offers matter
One of the easiest things to overlook during a busy campaign is the effect of a rejected offer.
If the vendor rejects an offer because it is too low, that may affect whether the existing advertised price or price range can continue to be used.
Comparable properties need to be genuinely comparable
Comparable sales are one of the foundations of the Statement of Information.
But putting three properties on a form does not automatically make them good comparables.
The agent needs to be able to explain why the properties relied upon are genuinely relevant to the property being sold.
Location, land size, improvements, condition, accommodation, development potential and the timing of the sale may all affect whether another property is genuinely comparable.
Consumer Affairs Victoria issued revised comparable-property guidance in November 2025, making this an area agents should be particularly careful about.
Keep the file
One of the best protections available to an agent is a proper contemporaneous file.
Do not rely upon remembering six months later why a price was changed or why it was not changed.
Keep records of:
- the evidence supporting the original estimate
- vendor discussions and instructions
- buyer feedback
- offers received and rejected
- changes to the estimated selling price
- updates to the Statement of Information
- changes made to online and other advertising
A short file note made at the time is generally far more useful than trying to reconstruct the reasoning after a complaint has been made.
What should agents do?
Treat the Statement of Information as a live document, not something completed once when the listing is signed.
As the campaign develops, review:
✓ the comparable properties
✓ the vendor's instructions
✓ rejected offers
✓ buyer feedback
✓ the level of market interest
✓ the Statement of Information
✓ all online and printed advertising
If circumstances materially change, deal with the issue when it happens.
Do not wait until the property has sold and somebody starts asking questions.
One final thought
Underquoting compliance is not simply about whether the property ultimately sells within the advertised range.
It is about whether the agent can demonstrate that the price being communicated to the market was properly supported by the information available at that particular time.
The safest approach is simple: review the evidence, update the documents when circumstances change, and keep a proper record of why decisions were made.
Something in a campaign does not look right?
If you are dealing with a difficult contract, disclosure issue, rejected offer or something in the sales process that is making you uncomfortable, give us a call.
Victorian Property Settlements has been dealing with Victorian property transactions for more than 20 years. We understand what happens between listing, contract, Section 32, sale and settlement, and we regularly deal with the problems that arise when those stages do not line up properly.
Sometimes a five-minute conversation before something becomes a problem is considerably easier than fixing it afterwards.
Contact Victorian Property SettlementsLicensed Conveyancer
Victorian Property Settlements
PO Box 11220
Frankston VIC 3199
David@quick32.com
