AustraliaAn agent sold my investment property for below market value without proper marketing. Is this misleading?
Yes, selling your investment property below market value without proper marketing may be misleading or unconscionable under the Australian Consumer Law, especially if the agent failed to act in your best interests or provide transparent advice.
What the Law Says
Australian law imposes strict obligations on real estate agents when acting for sellers — particularly regarding honesty, transparency, and diligence in marketing and pricing.
Under the Australian Consumer Law (ACL), it is unlawful for a person in trade or commerce to engage in conduct that is misleading or deceptive, or likely to mislead or deceive. This applies to real estate agents acting on behalf of property owners.
Agents also owe fiduciary-like duties under state-based legislation — for example, the Property, Stock and Business Agents Act 2002 (NSW) requires agents to act honestly, fairly and in the client’s best interests, including taking reasonable steps to obtain the best price reasonably obtainable.
The ACL also prohibits unconscionable conduct in connection with the supply of services (like property sales), especially where there’s a significant imbalance in bargaining power and the agent fails to explain risks or alternatives.
Statutory TextA person must not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive.
— Competition and Consumer Act 2010 (Cth), Sch 2, s. 18 — Misleading or deceptive conduct
Statutory TextA person must not, in trade or commerce, engage in conduct that is unconscionable within the meaning of section 20 or 21.
— Competition and Consumer Act 2010 (Cth), Sch 2, s. 22 — Unconscionable conduct
Statutory TextAn agent must act honestly, fairly and professionally in the best interests of the client.
— Property, Stock and Business Agents Act 2002 (NSW), s. 47 — Duties of agents
What to Do
Review your agency agreement to confirm the agent’s obligations (e.g., marketing plan, price strategy, reporting requirements).
Request written records of all marketing efforts, offers received, and advice given about pricing and timing.
Lodge a complaint with NSW Fair Trading (or your state’s equivalent) or ASIC if the agent breached professional standards.
Seek independent valuation evidence to assess whether the sale price was significantly below market value at the time.
Consider legal advice about potential claims for compensation — you generally have up to 6 years from breach (or 4 years under ACL for penalties).
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.