The NSW Government will introduce a bill to increase fines for real estate agents who underquote prospective buyers.
The practice is already illegal.
If passed, the bill would increase fines for underquoting, mandate price guides on advertising, and publicise underquoting breaches.
The Government will introduce it to Parliament next year.
Existing law
It is currently illegal for real estate agents to underquote prospective buyers by giving them a price lower than the seller has agreed to.
Agents currently face fines of up to $22,000 for not complying with the law, and could lose their commission.
The NSW Government consumer rights body reported more than 100 instances of underquoting last year.
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New bill
The new bill would see the Government increase fines for underquoting from $22,000 to $110,000 or triple the agent’s amount of commission, depending on which amount is greater.
Underquoting breaches would be published, and price guides would need to be included on property advertisements.
Agents would need to share information with prospective buyers about how the property price was calculated.
Response
Shadow Fair Trading Minister Tim James said the Opposition “welcome[s]” the “action on underquoting.”
He said they “want to see real reform that delivers confidence and fairness in the property market, with tougher penalties and proper enforcement”.
If the Opposition supports the bill, it will pass into law.
