Property agents in New South Wales are facing the toughest crackdown on underquoting in years, with new laws introducing fines of up to $110,000 AUD (approximately £57,000) for misleading buyers about home prices.
What Constitutes Underquoting Now?
The reforms, which took effect in November 2025, significantly broaden what qualifies as underquoting in property transactions. Agents can now be penalised for providing inaccurate price guides, hidden price brackets, or failing to update estimates when higher offers emerge.
Core breaches that could trigger the maximum penalty include deliberately providing false evidence to regulators or systematically engaging in misleading conduct across multiple properties. The legislation specifically targets the practice of advertising properties with price guides significantly below their expected selling range to attract more potential buyers.
Strengthening Consumer Protection
New South Wales Fair Trading Commissioner, Natasha Mann, emphasised that these changes represent a fundamental shift in approach. "We're moving from guidance to enforcement," she stated, highlighting that the reforms provide regulators with sharper teeth to penalise misconduct.
The updated laws require agents to maintain detailed records of all price estimates and comparable sales data used to determine their guides. They must also promptly revise price information when receiving written offers above their current quoted range.
Impact on the Property Market
This regulatory overhaul addresses longstanding frustrations among home hunters who have faced wasted time and emotional investment pursuing properties that ultimately sell far above advertised prices. The practice has been particularly problematic in competitive markets where buyers must arrange finances and inspections based on potentially misleading information.
Industry bodies have acknowledged the need for greater transparency, though some express concerns about implementation. The reforms aim to level the playing field for genuine buyers while maintaining market efficiency.
With these strengthened NSW property laws, authorities signal a clear intent to restore confidence in the home buying process and ensure buyers can trust the price information provided by licensed professionals.
