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The NSW government has ramped up its underquoting crackdown, issuing notices to 25 real estate agencies after the watchdog uncovered instances of misleading pricing.
As part of Operation Sunlight, NSW Fair Trading has issued ‘please explain’ notices to 25 real estate agencies after identifying signs of misleading price guides in recently sold properties.
NSW Strata and Property Services Taskforce inspectors reviewed sold property documents to assess the gap between advertised and sale prices, finding one property sold over 150 per cent above its listing price.
In total, each of the 25 agencies was asked to produce files for the sale of 10 properties that were at risk of underquoting.
The agencies will now have to provide taskforce inspectors with documents from each sale, including comparable market analyses, vendor, buyers, and prospective buyers' correspondence, and bidders’ records if sold at auction.
Under state law, real estate agents have been required to maintain accurate records for three years, including documentation of price quotations.
The watchdog said it will review the documents and take appropriate action, including warnings, penalty notices or a more formal investigation if the underquoting breach is proved.
Additional penalties can include licence suspension, cancellation, or disqualification for individual agents or companies.
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said that the government will continue to scrutinise unlawful behaviour in a bid to protect consumers and restore trust in the industry.
“Underquoting is not only bad for people looking to buy a home, but it also frustrates and harms the real estate agents who do the right thing when advising home owners about sales campaigns,” Chanthivong said.
Alongside the 25 ‘please explain’ notices, 15 more agencies are under investigation, and 50 real estate agents have received caution letters over potential underquoting.
The NSW underquoting task force said an additional 25 agencies will be served with similar notice over the coming weeks, flagged for underquoting under the state's Anytime, Anywhere program.
NSW Fair Trading’s $8.4 million Anytime, Anywhere program was developed by the taskforce to detect underquoted properties across the state.
In 2025, the program completed 164 audits, issuing 33 agents with $2,200 penalty notices each.
The ‘please explain’ notices have been part of a broader NSW government crackdown on underquoting.
Earlier this month, the government announced proposed reforms to strengthen underquoting laws, including penalties of up to $110,000 or three times the agent’s commission, mandatory pricing on all advertising, and a required Statement of Information to clarify how selling prices are calculated for buyers.
“Together, these actions put real estate agents who break the law and mislead consumers on notice,” Chanthivong concluded.
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