Reserve Prices Go Public: What Victoria's New Underquoting Laws Mean For Vendors, Buyers And Agents

What Has Changed

Underquoting, where a property is marketed at a price below the vendor's expected or acceptable sale price, has been unlawful in Victoria for years. The new regime, introduced through the Consumer Legislation Amendment Bill 2026 and amending the Estate Agents Act 1980 (Vic), goes much further by requiring the price to be disclosed outright. In summary:

• Reserve in writing, published early. Agents must obtain the vendor's reserve in writing and publish it in the Property Price Statement at least seven days before an auction or fixed-date sale.
• No published reserve, no sale. If the reserve isn't published by that deadline, the auction or sale cannot proceed as scheduled.
• Marketing must match. All advertising must reflect the published reserve; earlier material that omits it can't continue to be used.
• Sold prices made public. Once a sale becomes unconditional, the final price must be added to the Property Price Statement within seven days and remain public for 18 months.
• More property information. The Property Price Statement now includes additional details such as internal floor area and car spaces.

Existing penalties for underquoting, including substantial fines and the potential loss of the agent's commission, continue to apply.

Grey Areas To Watch

The reforms are only weeks old and industry participants have publicly flagged uncertainty about how they work in practice, in particular whether a reserve can be varied after it is published, and whether increasing it restarts the seven-day clock. There are also open questions about how the rules interact with pre-auction offers that are made and rejected. Until regulators or the courts provide clarity, vendors and agents should take a conservative approach and document every pricing decision.

What It Means For Vendors

• Settle your reserve earlier in the campaign, with your agent's appraisal and comparable sales in hand, and give written instructions.
• Have your contract of sale and Section 32 vendor statement finalised before marketing starts, so a compliance issue doesn't derail the timetable.
• Review your agency agreement for how reserve setting, price changes and pre-auction offers will be handled.

What It Means For Buyers

A published reserve is a floor, not a forecast. It tells you the minimum the vendor will accept, not what the property will sell for. The extra information in the Property Price Statement is helpful, but it does not tell you about zoning, planning overlays, flood risk, easements, owners corporation issues or defects. Auction purchases in Victoria carry no cooling-off period, so have the contract and Section 32 reviewed before you bid, and have finance and building and pest inspections in place.

What it means for agents and developers

Agencies should update campaign checklists, written reserve authorities, listing templates and record-keeping so that every channel shows the current reserve and the sold price is updated on time. Developers and others selling multiple lots by auction or set-date sale should review their sales processes now.

How Eventus Can Help

Our national Property team, led by Jane Wolfe, advises vendors, purchasers, agents and developers on contracts of sale, Section 32 statements, auction and campaign compliance, and disputes arising from property transactions, supported where needed by our litigation team.

To discuss how the new laws affect your sale, purchase or agency, contact Jane Wolfe or visit eventus.com.au/contact.