Agents who supply a misleading price estimate will face fines five times higher than the current penalties or three times the commission under the NSW government's proposed reforms.
The NSW government’s proposed underquoting reforms have entered the consultation phase, with the proposed changes aimed at protecting buyers and bringing clarity to the state’s real estate sector.
While agents currently face fines of up to $22,000, proposed government reforms could soon increase the penalty to $110,000 or three times the agent's commission, whichever is greater.
The reforms will also increase the disciplinary actions that NSW Fair Trading can take, including publicising breaches or suspending an agent’s ability to sell a property.
Additionally, the reforms will provide greater clarity around advertising, mandating that a price guide be posted on all listings, before being revised and updated to ensure it stays an accurate representation of the property’s value.
Under the new rules, agents will also be required to provide a Statement of Information to help prospective buyers understand exactly how the sale price was determined.
The proposed changes have been modelled after Victorian laws introduced in 2016, and form part of the NSW government’s crackdown on underquoting announced in August as part of its Compliance and Enforcement Agenda 2025-26
NSW Strata and Property Services commissioner Angus Abadee said the new rules would help buyers make clearer and more informed decisions.
“These reforms are designed to bring greater transparency to property sales and ensure buyers are not misled by inaccurate price guides,” Abadee said.
“By outlining our vision for clearer documentation and stronger penalties, we’re making it easier to hold agents accountable for underquoting.”
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said the reforms would restore trust and enhance transparency across the real estate industry.
“Our message is that we hear you - we’ve developed a package of reforms and are now consulting with the sector to ensure we get the balance right between consumer protection and practical implementation for industry,” Chanthivong said
“The proposed laws will ensure NSW Fair Trading’s Strata and Property taskforce can take meaningful action against misleading conduct in property advertising and transactions and clean up the NSW market.”
The NSW government is expected to introduce the legislation to Parliament next year.
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