The NSW Government is moving to tighten the state’s underquoting laws, launching consultation on reforms aimed at improving transparency in property listings and restoring trust between real estate agents and buyers.
Underquoting occurs when agents advertise properties at a price lower than what they expect to sell for, leading potential buyers to invest time and money in properties beyond their means. The government’s proposal seeks to address this through higher penalties, clearer pricing requirements, and stricter oversight of real estate practices.
Among the proposed measures are fines of up to $110,000 or three times an agent’s commission, whichever is greater. Agents would also be required to include a price or price guide in all advertising and to publish a Statement of Information detailing how the estimated selling price was determined, including comparable sales and suburb medians.
The reforms would also set clearer rules around when and how agents can revise price estimates. Advertising would need to be promptly updated to reflect market feedback, and agents would be prevented from publishing price guides lower than any rejected offer or bid.
Other elements include stronger record-keeping obligations, evidence-based price assessments, and greater enforcement powers for NSW Fair Trading. Breaches could result in the suspension of sales activities or the appointment of independent valuers to verify property estimates. A new standalone offence would also apply to agents who fail to meet continuing professional development requirements.
In 2024, NSW Fair Trading issued more than 100 penalty notices for underquoting offences as part of its broader effort to strengthen compliance across the housing sector. The new proposals are modelled on Victoria’s 2016 reforms, which have since resulted in substantial fines and are widely accepted within the industry.
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said the changes were designed to address growing concerns from buyers and professionals alike about misleading property advertising. He said the government aimed to strike a balance between consumer protection and practical industry implementation.
“The message from both buyers and the property sector is clear: stronger underquoting laws are overdue,” he said. “We’re consulting with the industry to make sure these reforms deliver fairness, transparency and accountability in the property market.”
NSW Strata and Property Services Commissioner Angus Abadee said the reforms would bring much-needed clarity to property sales. He said clearer documentation and stricter penalties would help ensure agents are held accountable for the prices they advertise.
“The Statement of Information and improved advertising standards will help buyers make informed choices and avoid wasting time and money,” Mr Abadee said. “It’s a practical step towards restoring confidence in the property market.”
The government plans to introduce legislation to Parliament next year following the consultation process.
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