10 agents fined in underquoting blitz

The two-month blitz resulted in 10 agents being issued with fines valued at a total of $20,900, five warnings, and 16 education directives.

Across the state, taskforce inspectors posed as prospective buyers at open homes before examining agency sales records, vendor feedback, and advertising materials.

They then checked whether prices quoted to consumers matched the information held by the agency.

The watchdog said the blitz operation uncovered alleged breaches involving underquoting, consumer protection and record-keeping.

In one case, an agent was fined after telling prospective buyers a property was expected to sell for $3.65 million.

The agency’s records valued the property at $4 million to $4.4 million, while its online advertising listed a $4 million search price.

In another case, an agent was warned after recording and reporting purchaser feedback that did not accurately reflect discussions with buyers during an open home.

The watchdog said underquoting involved advertising a property below its reasonable selling estimate to attract interest, create artificial competition and drive up prices, wasting buyers’ time, effort, and money.

“Behaviour like this has the potential to mislead the seller about buyer sentiment and price expectations,” it said.

Strata and Property Services commissioner Angus Abadee said the operation supported recently passed underquoting laws, with consultation on the regulations now underway with industry stakeholders.

“Strong compliance benefits consumers, but it also benefits the many agents who do the right thing by ensuring they are not competing against businesses willing to cut corners or ignore the rules.

"The overwhelming majority of property professionals do the right thing, but those willing to push the boundaries should be on notice that Fair Trading officers could be at their next open home,” Abadee said.

The underquoting investigation campaign also marked the first six months of the Name and Shame Register.

Introduced earlier this year, the Register gives consumers a public record of disciplinary and enforcement action against real estate agents, strata managers and agencies, allowing them to check an operator’s history before engaging their services.

Minister for Better Regulation and Fair Trading Anoulack Chanthivong said NSW Fair Trading would continue targeting property professionals who failed to meet their obligations and risked undermining consumer confidence in the sector.

He said the government had invested $8.4 million in the Strata and Property Taskforce to bring together specialist inspectors, investigators and dispute resolution experts to tackle misconduct and raise professional standards.

“Buying a home is one of the biggest financial decisions you can make, and people deserve confidence that price information is accurate and transparent.

“This operation shows that NSW Fair Trading is actively monitoring the market and taking swift action where real estate agents are not meeting their obligations.”