The Minns Labor Government has announced sweeping reforms to New South Wales’ underquoting laws, unveiling a package of measures designed to lift professional standards, improve transparency in property listings, and rebuild buyer confidence.
The proposed changes, now open for consultation, target misleading price estimates in property advertising, a practice known as underquoting, which often results in buyers wasting time and money chasing homes beyond their reach.
Under the reforms, penalties for underquoting would increase fivefold from the current $22,000 to $110,000 or three times the agent’s commission, whichever is greater.
Agents would also be required to publish a price or price guide on all advertising to ensure buyers are not misled.
A new Statement of Information (SOI) would become mandatory, outlining how price estimates are calculated, including comparable sales and suburb median prices.
Advertising rules would also be tightened, with agents required to update price guides promptly and barred from quoting less than any rejected offer or bid.
The reforms would also strengthen record-keeping obligations, requiring agents to keep evidence of offers, market feedback, and changes in market conditions to help NSW Fair Trading enforce compliance.
NSW Fair Trading would gain stronger powers to impose disciplinary action, such as publishing breaches, appointing independent valuers to verify price estimates (at no cost to vendors), or suspending an agent’s licence for serious misconduct.
A new standalone offence would also be created for agents who fail to meet their professional development requirements.
In 2024, NSW Fair Trading issued more than 100 penalty notices for underquoting as part of the Strata and Property Services Taskforce, reinforcing the government’s focus on accountability across the property sector.
The reforms, modelled on Victoria’s 2016 underquoting laws, are expected to go before Parliament next year.
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said the changes were needed to restore public trust.
“There is broad recognition not only from buyers, but across the property industry, that stronger underquoting laws are needed to restore trust and improve transparency in property sales,” Mr Chanthivong said.
“We’ve developed a package of reforms and are now consulting with the sector to ensure we get the balance right between consumer protection and practical implementation for industry.”
“The proposed laws will ensure NSW Fair Trading’s Strata and Property Taskforce can take meaningful action against misleading conduct in property advertising and transaction and clean up the NSW market.”
NSW Strata and Property Services Commissioner Angus Abadee said the reforms would deliver greater clarity for buyers.
“These proposed reforms are designed to bring greater transparency to property sales and ensure buyers are not misled by inaccurate price guides,” Mr Abadee said.
