It’s illegal for real estate agents in Australia to mislead consumers about a property’s price; or the formal offer from another party or any other information about the property. Real estate agents must not mislead consumers in order to encourage higher offers.
Real estate agents have a legal obligation to disclose all offers on a property to all potential buyers. This is because they are acting as agents for both the seller and the buyer, and they have a duty to both parties to act in good faith. If a real estate agent lies about another offer on a property, they could be breaking the law and could face disciplinary action from their real estate board.
In addition to the legal obligation, there are also ethical reasons why real estate agents should not lie about other offers. Lying about other offers is a form of misrepresentation, and it can damage the trust that buyers have in real estate agents. When buyers don’t trust their real estate agent, they are less likely to be willing to work with them, and this can make it more difficult for the agent to sell the property.
If you are a buyer and you are concerned that a real estate agent may be lying about other offers, there are a few things you can do. First, you can ask the agent to provide you with written proof of any other offers. Second, you can contact the real estate board in the state where the property is located and file a complaint. Third, you can contact a lawyer and discuss your options.
What can you do when dealing with a real estate agent who may be lying about other offers
- Ask for written proof of any other offers. This is the best way to ensure that the agent is not lying to you. Although they are not legally obligated to give you this confirmation in writing, many agents will likely act in good faith.
- Contact the real estate board in the state where the property is located. The real estate board can investigate the agent and take disciplinary action if they find that the agent has violated the law or the code of ethics.
- Contact a lawyer. A lawyer can advise you on your legal options and can help you file a lawsuit against the agent if they have lied to you.
Anecdotal experiences from Reddit about Real Estate Agents in Australia
“They all say there is a competing offer. I don’t know if it’s legal, but they all say it.
There’s a reason the old joke says you can tell a real estate agent is lying when their lips are moving.
Do your own research and don’t bid/offer more than you are comfortable with.” – Username: Frogmouth_Fresh
“Apparently it is illegal for them to do so but yes they absolutely do it, constantly. My agent told us there was an offer in, then our conveyancer discovered a glaring error in the contract. I asked the agent how the other bidder’s lawyer could had missed such an obvious error. Crickets and guilty mumbling ensued. If i hadn’t wanted the place desperately I would have taken the time to report him.” – Username: vcrcopyofhomealone2
“We offered 630k on a glorified townhouse. Agent said owners wouldn’t consider anything under 750k. It sold for 605k 4 months later. “ - Username: superkartoffel
“Generally yea.
Example i had, offered 870k on a house, agent came backing saying he’s got offers over 900k. So im like well im not interested any further. The place i wasnt prepared to go above 890k on.
Find out it sold for 875k. Agent could have hooked me on 890k if he wasn’t so greedy.” – Username: Kritchsgau
Reference:
https://www.reddit.com/r/AusProperty/comments/13q6rbk/can_an_agent_lie_about_a_competing_offer/
