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Real estate agents in Sydney’s Inner West have been fined over $66,000 for underquoting after a recent NSW Fair Trading crackdown.
Minister for Innovation and Better Regulation Matt Kean said that inspectors visited 37 real estate agents in the area and found 27 to be non-compliant and 19 were fined for underquoting offences.
Mr Kean said that the area was a busy market and it was disappointing to see this behaviour.
“Buying or selling can already be a stressful experience, so I’m really disappointed to hear that some real estate agents are taking advantage of consumers instead of looking out for their best interests,” the minister said.
The NSW Fair Trading operations are based on several factors, including reports from the community about alleged underquoting.
Mr Kean said that underquoting was one of the biggest issues found in the Inner West.
“The latest operation found agents pitching expected sales prices far below the final value or failing to provide mandatory written records on the expected price,” Mr Kean said.
Mr Kean said that, overall, it was a disappointing result for the agents, and he stressed his commitment to putting consumers first.
“Overall, this is not a good report card, with just 10 of the 37 agents found to be compliant with their responsibilities.
“I am absolutely committed to putting consumers first, and I have directed Fair Trading to continue cracking down on any business engaged in dodgy practices.”
Leanne Pilkington from the Real Estate Institute of NSW said that these behaviours were disappointing.
“It is really disappointing that agents are not meeting their obligations and following the law,” she said.
Ms Pilkington said that the underquoting and other non-compliance issues came down to a lack of training in the industry.
"There is a lack of educational standards. There is not enough training for agents before they can go and sell a house,” she said.
The REINSW is currently working alongside Fair Trading to improve those standards and Ms Pilkington said they could be finished within six months.
“Hopefully, we have the standards within six months, but it will be as soon as it practically can. There is no point rushing into it,” she said.
Ms Pilkington said the standards combined with the push to become professionally recognised the industry would weed out these practices.
“We are on the path to professionalism. We want to be professionally recognised and that will absolutely rule out these practices,” she said.
The agents inspected were in Ashfield, Burwood, Canterbury, Croydon Park, Drummoyne, Dulwich Hill, Five Dock, Leichhardt, Marrickville, Newtown, Petersham, Strathfield and Summer Hill.
The sting is the latest by NSW Fair Trade, which investigated 17 offices on the Northern Beaches in March and 24 agents in Western Sydney in February.
In the Northern Beaches, 12 of the 17 offices were fined, with seven being for underquoting.
The Western Sydney operation exposed 18 agents who were fined for not meeting necessary standards.
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