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Say goodbye to hidden prices: NSW enforces mandated listing guides
This week, the Minns Labor government will introduce legislation to protect home buyers from being misled by underquoting, increase transparency in property listings, and give NSW Fair Trading greater enforcement powers over real estate agents.
Under the new regulation, NSW agents will be required to publish a mandated price or price guide on all property advertising, in a bid to help buyers avoid wasting time on homes outside their budget.
Agents will also need to provide a Statement of Information (SOI) detailing how the property’s selling price was determined, including comparable sales and the suburb’s median price.
They will also need to keep their listing prices up to date by calculating and updating the estimated selling price in accordance with new, clearer guidelines.
Agents will also be banned from advertising a price lower than a previously rejected written offer or the highest unsuccessful auction bid.
The state government said the proposed laws are aimed at giving home buyers confidence that they won’t be misled or overcharged when searching for their next home.
Under the new reforms, agents’ underquoting tactics will also be further penalised with fines rising from $22,000 to $110,000 or three times the agent’s commission, whichever is higher, if found in breach.
Similarly, fines for dummy bidding at auctions will double from $55,000 to $110,000.
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said the reforms are a major step in safeguarding home buyers from unscrupulous agents exploiting a tight housing market.
Underquoting has been rampant in NSW, with multiple agents coming under fire over the last few weeks and having their licences cancelled by the state watchdog.
“By significantly increasing penalties for underquoting, we are ensuring misconduct can no longer be written off as a cost of doing business, but as a meaningful deterrent,” Chanthivong said.
Additionally, under the new regulation, Fair Trading will gain stronger powers to tackle serious breaches, including the power to force agents to publicly disclose misconduct or to have their price estimates independently checked by a qualified valuer.
Chanthivong said the reforms will strengthen professional development by giving Fair Trading authority to approve training providers and courses, and by imposing penalties on agents who skip mandatory training.
“The changes will also empower NSW Fair Trading to tackle misrepresentations of property prices through stronger disciplinary action, better enforcement tools and improvements to mandatory education and professional standards.”
NSW’s new underquoting crackdown follows Victoria, which introduced mandatory price guides in 2017, with agents needing to provide a statement of information that includes comparable sales.
Last week, Victoria tightened its underquoting rules, introducing legislation that will bar agents and vendors from withholding residential property sale prices, aiming to make price guides more accurate and reliable.
