PHOTO:🚨 UNDERQUOTING CRACKDOWN: 25 REAL ESTATE AGENCIES ORDERED TO ‘PLEASE EXPLAIN’.FILE
A sweeping enforcement action is underway across New South Wales as 25 real estate agencies have been hit with official “please explain” notices after regulators uncovered major underquoting red flags.
The move forms part of Operation Sunlight, a large-scale NSW Fair Trading initiative targeting misleading pricing, where properties have been advertised far below their eventual selling price.
One property even sold for more than 150% above its listing price — a clear trigger for investigation.
📑 WHAT THE WATCHDOG FOUND
NSW Strata and Property Services Taskforce inspectors reviewed recently sold properties and immediately noticed significant gaps between advertised guides and actual sale prices.
As a result:
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25 agencies were ordered to produce files for 10 flagged sales each
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Agencies must provide:
✔ Comparable market analyses
✔ Vendor and buyer correspondence
✔ Prospective buyer communications
✔ Auction bidder records -
All documents must show how prices were calculated and communicated
Under NSW law, agencies must keep accurate pricing documentation for three years — and failure to do so is a breach in itself.
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⚖️ WHAT AGENCIES NOW FACE
Once the documents are reviewed, NSW Fair Trading can issue:
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Formal warnings
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Penalty notices
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Full investigations
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Licence suspension, cancellation, or disqualification
This is one of the most aggressive anti-underquoting campaigns seen in recent years.
🗣️ MINISTER: “WE ARE PROTECTING BUYERS AND GOOD AGENTS”
Minister for Better Regulation and Fair Trading Anoulack Chanthivong says the government is determined to stamp out unlawful behaviour and restore trust.
“Underquoting is not only bad for people looking to buy a home, but it frustrates and harms the agents who do the right thing.”
The message is clear:
If you mislead buyers, you will be caught.
🔍 MORE AGENCIES UNDER THE MICROSCOPE
The 25 agencies named in Operation Sunlight are not alone.
Additional enforcement activity includes:
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15 more agencies currently under investigation
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50 individual real estate agents receiving formal caution letters
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Another 25 agencies to receive notices in coming weeks under the Anytime, Anywhere program
NSW Fair Trading has invested $8.4 million into this program, using data analysis and targeted audits to detect underquoted properties anywhere in the state.
In 2025 alone:
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164 audits completed
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33 agents issued $2,200 fines each
And higher penalties are on the horizon.
📢 NSW GOVERNMENT PUSHES FOR TOUGHER LAWS
Earlier this month, the state government unveiled a package of proposed reforms, including:
✔ Penalties up to $110,000 or three times the agent’s commission
✔ Mandatory pricing on ALL advertising
✔ A required Statement of Information for buyers
✔ Clear, documented explanation of how price guides were calculated
These changes are designed to bring transparency and accountability into property campaigns — and to stop misleading price guides before they even hit the market.
🏁 THE BOTTOM LINE: AGENTS WHO BREAK THE RULES ARE ON NOTICE
The NSW government’s stance is aggressive and unambiguous.
The industry has been warned.
“Together, these actions put real estate agents who break the law and mislead consumers on notice,” Chanthivong said.
Underquoting has been one of the most persistent complaints from buyers — and now, with increased funding, stronger laws, and a watchful regulator, agencies that play games with price guides may find the consequences severe.