Sydney real estate agents face huge fines under proposed new laws
Following a disclosure made by reporterformer Ray White agent Josh Tesolin and his company, Tesolin Consulting, were sentenced to a four-month suspension in August, pending possible disciplinary action, following a series of allegations of serious and repeated violations of the law.
Star agent Josh Tesolin was photographed leaving his home in Bella Vista on Friday.Credit: Sam Mooy
Agents have long adopted a conceptual 10 percent buffer in price guides, but even then 48 percent of auction sales were found to sell for prices higher than the 10 percent guide. Of these, 16 percent of sales were sold for 20 percent or more.
Moves to make advertised price guides mandatory and introduce uniform rules on pricing have been welcomed by Real Estate Institute of NSW president Thomas McGlynn.
“Of the three main states with auction markets, NSW is the only state that does not have standard rules on pricing,” McGlynn said.
McGlynn said buyers could go to three different properties in the same price range and they would all be marketed differently in terms of price. “One will not have a price guide, one will have a price set before the auction, and one will have a guide.”
In contrast, there is no price guide for auction sales in Queensland and a price guide is mandatory in Victoria.
Longtime industry leader Tim McKibbin said more needs to be done in terms of agent training and ensuring compliance among agents.
McKibbin said the three-day training for agents was setting them up for failure in the market and called on Fairtrade to use technology to more actively monitor agent behavior.
“The one thing that has been consistent throughout my 21 years as chief executive of the Real Estate Institute of NSW has been the government’s determination to rule out any serious industry consultation,” McKibbin said.
NSW Strata and Property Services Commissioner Angus Abadee said the reforms were designed to bring greater transparency to property sales.
“By outlining our vision for clearer documentation and stronger penalties, we make it easier to hold agencies accountable for undercitations,” Abadee said.
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