NSW agents who mislead buyers on property prices will now face penalties of $110,000 or fines three times their commission in the state’s latest bid to crack down on wrongdoers.
The Minns government has launched a major clampdown on underquoting, significantly increasing penalties for agents who mislead property buyers and those who engage in dummy bidding.
To prevent dwellings from being advertised at prices lower than they might reasonably sell for, penalties have risen from $22,000 to $110,000, or three times the agent’s commission, whichever is greater.
Additionally, there will be mandatory prices or price guides on all advertising, ensuring prospective buyers don’t waste their time on properties outside their budget.
Further, there will be double penalties for businesses that engage in dummy bidding at auctions, increasing from $55,000 to $110,000.
Agents will also be required to publish a statement of information to help buyers understand how a selling price was calculated, including comparable sales and the suburb’s median sale price.
Under the new laws, agents will also have to calculate and revise the estimated selling price of a property in accordance with new, clearer guidelines.
Property professionals will additionally be prohibited from advertising a selling price lower than a previously rejected written offer, or the highest unsuccessful bid at an auction.
NSW Fair Trading will also have more powers, such as being able to force agents to publicly reveal when they broke the rules, or requiring their price estimates to be checked by an independent, qualified valuer.
To allow for heightened compliance, the watchdog will also be able to control training standards, being able to fine agents who don’t complete required professional development programs.
The NSW government said the new measures were part of its bid to make the property market fairer and more transparent for property purchasers.
NSW Better Regulation and Fair Trading Minister, Anoulack Chanthivong, said the measures would ensure that homebuyers weren’t wasting their time and money during one of the most important transactions in their lives.
“Because whether you’re buying your first home or are looking for somewhere with a bit more room for a growing family, you should know exactly what is or isn’t in your budget,” Chanthivong said.
“These laws mean that honesty and transparency are now the standard for property sales.”
The new laws followed former NSW Ray White agent, Josh Tesolin, being hit with a 10-year ban earlier this year following alleged wrongdoing, including systematic underquoting and dummy bidding.
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