NSW to crack down on property underquoting, forcing sellers to publish price guides on all listings | Housing
The New South Wales government will this week introduce new laws that will force property sellers to publish price guides for all advertisements and increase penalties fivefold for those who underprice real estate agents.
The government says the bills, first flagged last year, aim to crack down on agents who make misleading price estimates in property listings; This practice is often used to inflate interest.
Agents caught underquoting can now be fined $110,000 (five times the previous penalty) or three times their commission, whichever is greater.
The “fake bid” will also attract a $110,000 fine.
The NSW government has also said it will introduce legislation that will force sellers to publish a price guide on all advertising and require agents to publish an “information statement” to help buyers understand how the price is calculated. This includes providing information on comparable sales and average prices.
Agents will also be banned from advertising a property for sale at a price lower than the previously rejected price.
The move comes at a time when momentum is building for greater regulation of the real estate industry across the country.
The Victorian government announced last week it would introduce similar disclosure rules to force agents to publish sales prices. If re-elected, Labor in Victoria has said it would require retailers to pay for mandatory building and pest inspections.
NSW Fair Trading Minister Anoulack Chanthivong said the government wanted “a fair property market that works for everyone”.
“These reforms are an important step forward in protecting home buyers from unscrupulous real estate agents taking advantage of the tight housing market,” Chanthivong said.
“We ensure that fraud is no longer erased as a cost of doing business, but as a meaningful deterrent.
“The changes will also give NSW Fair Trading the power to tackle misrepresentations of property prices through stronger disciplinary action, better enforcement tools and improvements to mandatory training and professional standards.”
