Property

Commerce Commission warns on real estate advertising

A popular way of advertising real estate may breach the Fair Trading Act, the Commerce Commission has warned.

Monday, September 06th 2004

Property advertisements that indicate a price range, such as "offers over" a certain amount, are common.

But, the commission says it is looking closely at this form of advertising to ensure buyers are not misled into thinking vendors are willing to accept a lower price.

Commerce Commission fair trading director Deborah Battell said the commission had taken two cases to court for advertising for "inquiries between" two amounts in the past two years, illustrating the danger of this type of advertising.

"There's nothing wrong with that as long as the bottom of the price range reasonably reflects the vendor's expectations."

Asking for "offers over" was exactly the same as advertising a price range, she said, and vendors must be willing to consider offers close to the stated price.

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