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NSW Fair Trading has conducted a surprise five-day blitz targeting the Central Coast real estate market, opening an investigation into an agent for ‘repeated underquoting offences’ and issuing seven penalty infringement notices.
Over five days, 12 inspectors visited 64 businesses, which the watchdog confirmed was a mix of random audits and businesses selected following anomalous sales data and customer complaints.
They targeted a swathe of real estate offices, including 33 real estate agents, 13 retirement villages, seven land lease communities, six strata agents and five conveyancers.
The blitz formed part of the Anywhere, Anytime audit program.
NSW Fair Trading has confirmed that one agent is now the subject of an ongoing investigation into underquoting.
Meanwhile, seven penalty infringement notices were issued for breaking underquoting rules of conduct and supervision regulations.
One strata agent was also fined for failing to have their accounts audited. An additional 20 education and warning letters were issued.
Strata and Property Services commissioner Angus Abadee warned that “you can expect a visit from Fair Trading anytime and anywhere”.
“NSW Fair Trading is planning further unannounced inspections across the state and will be targeting operators who have a compliance history, with inspectors to revisit the Central Coast in the coming months to ensure education and warning letters have been complied with,” he said.
“As we move into the peak of spring auction periods, Fair Trading will be undertaking proactive compliance and enforcement activity to continue to combat underquoting.”
The news comes just days after NSW Fair Trading 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.
[Read more – ‘Please explain’: 25 NSW agencies under fire for underquoting]
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