Requirement to substantiate selling price estimates

The Commissioner for Fair Trading may now require real estate agents to substantiate that their selling price estimates provided to sellers or buyers, or prospective sellers or buyers, were reasonable. That is, the agent must be able to show that there was some objective basis on which their estimates were based.

Section 74 of the Act provides that the Commissioner (or delegate) may issue Substantiation Notices. These Notices will require the agent to provide evidence of the reasonableness of any estimate of the selling price of residential property in a statement made by the agent; and specify a time for compliance with the notice.

The provision applies to any estimates of selling price, whether the property concerned is to be sold by private treaty or by auction. It applies to statements made orally, in writing, or in advertisements or any promotional material relating to the property.

For information on how to comply with these requirements refer to the Commissioner's guidelines in the document Estimated selling price guideline for agents.

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