PHOTO: The withheld evidence reportedly covered issues such as waterproofing failures. FILE
“I’m totally unfairly suspended” — Sydney luxury agent Sarah Zhou hit with five-year ban over hidden defects
🏘️ The scandal uncovered
Sydney’s high-performing real-estate star Sarah Zhou, formerly with The Marshall Group on the Upper North Shore, has had her licence cancelled for five years after the regulator found she withheld vital building-defect documents from a buyer.
The withheld evidence reportedly covered issues such as waterproofing failures, fire-safety system concerns, building drainage problems and other essential services.
Two properties sold by her team in August fetched $4.7 million and $7.58 million respectively — signalling her role in Sydney’s luxury market.
Two homes Ms Zhou’s team sold in August went for $4.7 million and $7.58 million, respectively. Picture: Supplied
🚦Regulator’s findings & agent’s response
NSW Fair Trading issued a complaint-based investigation and determined Zhou breached the Property and Stock Agents Act 2002 and the Australian Consumer Law. Her licence was cancelled and she was fined.
Zhou strongly disputes the decision:
“That’s totally unfair and it’s a one-sided story, they haven’t reviewed our evidence… We provide whatever documents we have from third parties — we send that to the buyer.”
She claims the issue arose because she sent a link to the property documents that failed to work, rather than deliberately hiding defects. She has applied to challenge the decision in court, with a stay application set to be heard on 11 November 2025.
Ms Zhou was an agent for The Marshall Group. Picture: Supplied
💼 Career profile & fallout
Zhou had been with The Marshall Group for nearly two years and dealt in multi-million-dollar homes in affluent suburbs like Turramurra and Pymble. Her online profile has since been removed from the agency’s website.
This incident comes amid heightened scrutiny of Sydney’s luxury property market — and other agents facing disciplinary action. For example, top agent Josh Tesolin was suspended earlier this year for alleged under-quoting and dummy bidding.
She regularly sold multi-million dollar properties in affluent Sydney suburbs. Picture: Supplied
🤔 Why this matters
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Buyer trust at stake: Hidden structural or strata issues can lead to millions of dollars in unexpected costs and legal headaches.
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Agent accountability: The decision underscores the regulator’s growing focus on full disclosure and ethics in high-end real estate.
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Industry reputation: With the luxury market under fire, cases like this add to concerns about transparency, integrity and fairness in property sales.
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Legal precedent: A five-year ban sends a strong message — even top-performing agents can face serious consequences.
🔍 What to watch next
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Will Zhou succeed in her court challenge and regain her licence?
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Is this case a turning-point for how luxury agents document and disclose property defects?
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Will agencies tighten internal compliance and training to avoid similar regulatory action?
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How will buyers and sellers respond — will they demand more proof and evidence before committing?
SOURCE: NEWS.COM.AU