The New South Wales property market is set for a major shakeup, with the government proposing strict new laws aimed at eliminating underquoting and restoring trust among buyers.
Under the proposed reforms, real estate agents who mislead buyers with inaccurate price guides could face fines of up to $110,000, marking a significant increase from the current penalties.
What Is Changing?
The NSW Government’s new legislation is designed to remove the financial incentive for underquoting and improve transparency across the property market. Key changes include:
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Higher penalties: Fines for underquoting will increase from $22,000 to $110,000, or up to three times the agent’s commission—whichever is higher.
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Mandatory price guides: All property listings will be required to include a clear and accurate price or price range.
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Statement of Information (SOI): Agents must provide detailed documentation explaining how the price guide was determined.
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Stronger enforcement: NSW Fair Trading will have enhanced powers to investigate and act against misleading pricing practices.
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Auction reforms: Penalties for dummy bidding will also double to $110,000.
Why These Reforms Matter
Underquoting has long been a concern in the property market, often leading buyers to invest time, money, and effort pursuing properties that ultimately sell well above the advertised price.
The new laws aim to:
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Improve transparency in property pricing
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Reduce buyer frustration and wasted resources
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Strengthen trust in the real estate industry
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Ensure fairer outcomes for both buyers and sellers
According to government officials, the increased penalties are intended to act as a real deterrent, ensuring misconduct is no longer treated as a minor cost of doing business.
Industry Reactions
The proposed changes have received mixed reactions from the property sector.
Support for Greater Transparency
Many industry leaders believe the reforms are a positive step forward. Clearer pricing guidelines and better disclosure are expected to:
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Help buyers make more informed decisions
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Support ethical agents already following best practices
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Create a more consistent and reliable sales process
Concerns from Agents
However, some agents argue the issue may be overstated and that the new penalties are too severe. They point out that:
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Market conditions can change quickly, making pricing difficult to predict
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Many properties already sell within or close to their price guides
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Education and guidance for agents may be more effective than strict penalties
There are also concerns that similar measures introduced in other states have had limited impact on market behavior.
What This Means for Buyers and Sellers
For buyers, the reforms could be a game-changer. More accurate price guides and clearer information should make it easier to:
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Set realistic expectations
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Avoid wasting time on unaffordable properties
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Navigate the buying process with greater confidence
For sellers, the changes may lead to:
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More qualified and serious buyers
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Improved trust during the sales campaign
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A more transparent and professional transaction process
The Bigger Picture
While these reforms focus on improving transparency, some experts argue they won’t address the broader issue of housing affordability.
However, they are widely seen as an important step toward creating a fairer and more accountable property market.
Final Thoughts
The NSW Government’s proposed crackdown on underquoting signals a strong push toward transparency and accountability in real estate.
If implemented, these changes could reshape how properties are marketed and sold—benefiting buyers, supporting ethical agents, and helping rebuild confidence in the market.
