UPDATE: The New South Wales (NSW) government has launched an urgent crackdown on real estate agents engaged in deceptive practices of underquoting house prices. This follows a shocking investigation revealing one property sold for a staggering 150 percent above its advertised price.
Just announced: Authorities have issued ‘please explain’ notices to 25 real estate agencies across NSW for misleading price estimates on recently sold properties. Additionally, 15 more agencies are currently under investigation, while another 50 real estate agents received caution letters regarding potential violations.
This significant enforcement action is part of Operation Sunlight, an initiative by the NSW Fair Trading taskforce, which has developed a cutting-edge program called Anytime, Anywhere. This new auditing tool is designed to detect instances of underquoting in real-time, enhancing transparency in the real estate market.
Inspectors have meticulously reviewed documents related to the sale of over 250 properties to measure discrepancies between sales prices and advertised values. Alarmingly, one property was found to have sold for more than double its listed price. As a result, inspectors have demanded that dozens of agencies submit detailed files for each sale, including market analysis and communications with buyers and sellers.
In 2023 alone, the taskforce has conducted 164 audits, leading to fines of $2,200 imposed on 33 agents. Better Regulation and Fair Trading Minister Anoulack Chanthivong emphasized the importance of these measures, stating, “Underquoting is not only bad for people looking to buy a home, but it also frustrates and harms the real estate agents who do the right thing.”
The NSW government is committed to reforming underquoting laws, proposing steep penalties of up to $110,000 or three times an agent’s commission for violations. New regulations may soon mandate clear pricing guidelines in all advertisements and the publication of a statement of information to help prospective buyers understand how selling prices are calculated.
As this situation continues to unfold, the government’s increased enforcement capabilities are aimed at rooting out unlawful practices and ensuring fair treatment for homebuyers. The urgency of these developments cannot be overstated, as they promise to significantly impact the integrity of the real estate market in NSW.
Stay tuned for further updates as authorities continue to monitor compliance and pursue additional reforms to protect consumers in the housing market.
