Real estate agents in New South Wales could face hefty fines and mandatory price guides to protect buyers from underquoting. Underquoting occurs when agents advertise properties for less than their estimated selling price, luring buyers with false expectations. The Minns government aims to introduce stricter underquoting laws, mandating price guides on all listings to prevent buyers from wasting time on properties outside their budget. This move aligns with federal consumer laws and additional state regulations against underquoting. The NSW Minister for Better Regulation and Fair Trading, Anoulack Chanthivong, emphasizes the need for stronger laws to restore trust and transparency in the property market. The proposed legislation, modeled after Victoria's 2016 laws, will empower the NSW Fair Trading's strata and property taskforce to take decisive action against misleading conduct in property advertising and transactions. The taskforce has already uncovered instances of underquoting, including a high-profile case involving Sydney agent Joshua Tesolin, who faces disciplinary action for alleged breaches. The government plans to increase fines for underquoting from $22,000 to $110,000 or three times the agent's commission, and mandate price guides on all listings. Additionally, agents will be required to publish a 'statement of information' detailing how the selling price was calculated, including comparable sales and suburb median prices. This comprehensive approach aims to enhance transparency and protect buyers from underquoting practices.
