The New South Wales government has unveiled plans to introduce stricter penalties for real estate agents who underquote properties, including fines of up to A$110,000 (£55,000) or three times the agent’s commission. The proposed legislation, which is expected to be introduced to parliament next year, aims to crack down on misleading price estimates and increase transparency for buyers.
Under the reforms, agents would be required to include a price or price guide on all advertising to prevent buyers from wasting time on properties outside their budget. Agents would also need to publish a 'statement of information' explaining how the selling price was calculated, including comparable sales and suburb median prices.
The crackdown follows high-profile cases, such as that of Sydney agent Joshua Tesolin, whose licence was suspended after allegedly underquoting over 100 properties. The government is also proposing to create a standalone offence for agents who fail to meet continuing professional development requirements.
The Minns government has begun consulting with the property sector and intends to model the legislation on laws passed in Victoria in 2016, which are now widely accepted by the industry. The reforms are designed to restore trust and improve transparency in the NSW property market.
