PHOTO: Mandatory price or price guide on every listing
Shock Real Estate Crackdown: NSW Agents Could Face $110,000 Fines & Mandatory Price Guides Under Tough New Laws
⚠️ NSW Set to Get Tough on Underquoting
Real estate agents in New South Wales may soon be hit with massive $110,000 fines — or even higher — under sweeping new laws aimed at stamping out misleading price guides and restoring trust in the housing market.
The Minns Labor Government has kicked off industry consultation on a reform package that will overhaul price transparency and hold agents accountable for underquoting — a practice where homes are advertised below their true expected sale price to lure buyers.
Under the proposal, agents would also be forced to include mandatory price guides on every property listing, helping buyers avoid wasting time on homes far outside their budget.
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💸 What the New Laws Could Mean for Agents
NSW Minister for Better Regulation and Fair Trading, Anoulack Chanthivong, said both the public and industry want clearer rules and stronger enforcement.
“Our message is that we hear you. These reforms will clean up the NSW market and give Fair Trading the power to take meaningful action,” he said.
Key proposals include:
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🧾 Mandatory price or price guide on every listing
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💰 Fines increased from $22,000 to $110,000 (or 3× the agent’s commission)
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📊 Compulsory ‘Statement of Information’ showing comparable sales & median suburb prices
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👮 Stronger enforcement powers for NSW Fair Trading’s Strata & Property Taskforce
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📢 Public reporting of agents caught underquoting
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🎓 New standalone offence for failing to meet professional development requirements
The government says the new system will be modelled on the tougher laws introduced in Victoria in 2016 — rules widely accepted across the real estate industry.
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🏚️ Underquoting: Why It Matters
Underquoting has long been one of the most complained-about practices in the Australian property market. It artificially inflates competition, wastes buyer time, and undermines trust.
NSW Fair Trading’s new taskforce has already uncovered multiple cases — including the high-profile suspension of Sydney agent Joshua Tesolin for allegedly underquoting over 100 properties.
The government says stronger penalties and mandatory transparency will “level the playing field” for genuine buyers and force agents to provide honest estimates.
🧭 Mandatory “Statement of Information” Explained
Under the changes, agents must publish a clear breakdown of how their price estimate was calculated. This includes:
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Comparable recent sales
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Suburb median prices
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Price methodology
The goal? To eliminate vague, misleading, or deliberately low price brackets and make the market more predictable for buyers.
🏛️ What Happens Next?
The details of the final legislation will depend on consultation with property bodies, industry leaders, and potential amendments from the NSW opposition and crossbench.
Labor expects to introduce the bill to parliament in 2026.
Until then, the message from regulators is blunt:
The era of “creative” price guides in NSW is coming to an end.
SOURCE: THE GUARDIAN