The Minns Labor Government is delivering greater transparency for homebuyers and more clarity for real estate agents with the commencement of new underquoting laws this month.
Underquoting occurs when a property is advertised at a price below an agent’s reasonable estimate of its selling price. It can waste buyers’ time and money and create a false impression about what a property is worth.
From 17 November, real estate agents will be required to comply with the first tranche of reforms to restore confidence in the property market. This includes:
- Adding a selling price or price range in residential property advertisements – the days of “price on inquiry” will be over.
- Making sure buyers know accurate pricing by requiring online ads to be updated within one business day if a displayed price no longer complies with the law. For example, if the estimated selling price is revised, a written offer is rejected because it’s too low or the property is passed in at auction.
- Using the three most comparable sales when setting or revising an estimated selling price.
- Keeping detailed records showing how an estimated selling price was determined.
- Increasing penalties for underquoting up to $110,000 or three times an agent’s commission, whichever is greater.
- Retaining agency agreements electronically.
The reforms build on changes introduced earlier this year, which:
- Doubled penalties for businesses that engage in dummy bidding to $110,000.
- Strengthened NSW Fair Trading’s enforcement and disciplinary powers.
From 8 February 2027, agents will also be required to prepare a Statement of Information which explains how an estimated selling price was determined, including details of comparable sales used to support the price guide.
The Statement of Information will need to be available alongside online advertising and at property inspections, giving buyers access to more information before making one of the biggest financial decisions of their lives.
With around 150,000 property transactions taking place each year in NSW, these reforms will help buyers better understand whether a property is within their budget.
These laws, their regulations and their timing have been developed following extensive consultation with industry stakeholders.
This is all part of the Minns Labor Government’s plan to create a fairer, more transparent property market for everyone.
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said:
“Buying a home is one of the biggest financial decisions people make, and we know how overwhelming it can. Buyers deserve clear and reliable information when deciding what they can afford, so that they’re not wasting their time or their hard-earned money.
“That’s why the Minns Labor Government has delivered important reforms to put the hammer down on underquoting and stop homebuyers being taken for a ride.
“Together with the tougher penalties and the regulator’s increased powers, we’re confident these reforms will make a real difference in people’s lives and create a fairer property market.”
