Home / Business and Economy / NSW Cracks Down on Misleading Property Price Guides
NSW Cracks Down on Misleading Property Price Guides
15 Mar
Summary
- New laws will require property sellers to publish price guides.
- Fines for underquoting agents increased fivefold to $110,000.
- Agents must provide a 'statement of information' for buyers.
The New South Wales government is set to introduce new laws this week aimed at increasing transparency in the property market. These draft laws mandate that property sellers must publish a price guide with all advertisements. This move is designed to prevent real estate agents from engaging in misleading practices by providing inaccurate price estimates, which can artificially inflate buyer interest.
Penalties for agents found guilty of underquoting are set to increase significantly. The maximum fine will now be $110,000, a fivefold increase from the previous amount, or three times the agent's commission, whichever is greater. Furthermore, "dummy bidding" will also incur a $110,000 fine. Agents will also be prohibited from advertising a property for sale at a price lower than a previously rejected offer. These reforms are intended to empower NSW Fair Trading with stronger disciplinary actions and enforcement tools.
The state fair trading minister emphasized that these reforms are a crucial step towards ensuring a fair property market for everyone, especially in a tight housing market. The new regulations will require agents to publish a 'statement of information' to help buyers understand pricing calculations, including comparable sales data. This initiative mirrors similar disclosure rules being considered or introduced in other states, such as Victoria, indicating a broader national momentum towards greater regulation of the real estate sector.
