Some private treaty sales are marketed to buyers with an ‘offers over’ price tag.
If you use an ‘offers over’ price tag, it is the Office of Fair Trading’s view that it should carry the minimum amount the vendor is willing to accept to sell the property.
If you represent a property is for sale at a specified price, while knowing the vendor will not sell the property for that price, it is bait advertising.
The vendor’s minimum selling price is the list price noted on the Property Occupations Act 2014 appointment form (form 6).
Bait advertising is an offence under the Australian Consumer Law carrying a maximum penalty of $500,000 for individuals and $10,000,000 for corporations.
Bait advertising is prohibited because it gives buyers a false impression about the price a seller will accept for a property.
As a licensed property agent, you must not engage in misleading or deceptive conduct, or make false or misleading representations, to prospective buyers or sellers.
Similarly, if a vendor seeks to include marketing strategy instructions on the appointment form, then this would also amount to bait advertising. It is incumbent on the agent to make the vendor aware of the law.