NSW to introduce tougher laws on property underquoting
The New South Wales government will introduce legislation this week aimed at cracking down on misleading property price estimates in the real estate market.
Under the proposed reforms, real estate agents could face fines of up to $110,000 for underquoting.
The move is part of a broader push to increase transparency for buyers in a highly competitive housing market.
Major increase in penalties
The maximum fine for underquoting will rise from $22,000 to $110,000, representing a fivefold increase.
Agents could also face a penalty equal to three times the commission earned on the sale.
The reforms also double penalties for “dummy bidding”, a practice where fake bids are used during auctions to inflate prices.
Mandatory price guides on listings
The new laws will also require property sellers to publish price guides on all property advertisements.
In addition, agents will be banned from advertising a property for less than any written offer that has already been rejected.
The aim is to prevent listings from being marketed at unrealistically low prices to attract buyers.
New powers for regulators
The legislation will expand the authority of NSW Fair Trading, giving regulators stronger enforcement tools.
Agents could be required to:
• disclose breaches of pricing rules
• undergo independent verification of their price estimates
These measures are designed to ensure compliance with the new rules.
Government says reforms will protect buyers
NSW Minister for Better Regulation and Fair Trading Anoulack Chanthivong said the changes were intended to stop unethical practices in the property market.
“We are ensuring misconduct can no longer be written off as a cost of doing business,” he said.
The government says the reforms aim to create a fairer property market for homebuyers.