In a property market where advertised prices have long been treated with suspicion, New South Wales is moving to restore a measure of trust between buyers and the agents who serve them. Proposed legislation would sharply increase penalties for underquoting — the practice of listing homes below their likely selling price — while requiring agents to show their working, publishing the comparable sales data behind every price guide. The reforms, modeled on a Victorian framework that has quietly reshaped that state's market since 2016, reflect a government reckoning with the quiet erosion of confid
NSW to impose $110,000 fines on real estate agents for underquoting
Agents would have to show their working—comparable sales, suburb median, how they arrived at the price.
Mark
So underquoting is already illegal federally—why does NSW need its own law with even bigger fines?
Mimi
Because federal law alone hasn't stopped the practice. States add their own regulations to give local regulators teeth. NSW is saying the current $22,000 fine isn't a real deterrent for agents making much larger commissions.
Luke
Right, but we should note that the source doesn't actually say how often underquoting happens or how many cases Fair Trading has prosecuted. We know about Tesolin's case—over 100 properties—but is that typical or exceptional?
Mark
The statement of information requirement sounds like it could be useful. What would that actually look like?
Mimi
Agents would have to show their working—comparable sales they used, the suburb median, how they arrived at the price. It makes the pricing decision transparent instead of opaque.
Luke
That's the theory. But the source doesn't say whether agents will have to justify their methodology to a regulator before listing, or only after a complaint. That's a big difference in how much teeth it actually has.
Mark
Victoria's been doing this since 2016. Has it worked?
Mimi
The source says Victoria's original laws have been "widely accepted by the industry," which suggests they found a workable balance. Victoria just tightened them further, requiring agents to use the most appropriate comparables.
Luke
"Widely accepted" is vague. We don't know if underquoting has actually decreased in Victoria, or if agents have just gotten better at justifying their prices. The source doesn't give us any data on outcomes.
Mark
What happens to buyers right now if they show up to an auction expecting a $600,000 property and it sells for $750,000?
Mimi
They're out of luck. That's the whole problem. The advertised price was misleading, but there's no recourse for the buyer. The new law doesn't directly help that buyer, but it's meant to make the practice rare enough that it stops happening.
Luke
Exactly. This is about preventing the practice, not compensating people who've already been caught by it. That's worth noting—it's forward-looking regulation, not backward-looking justice.
Il Polso
- Buyers across NSW have long entered auctions misled by artificially low price guides, only to watch properties sell far beyond what they budgeted for — a cycle that wastes time, money, and trust.
- The proposed fivefold increase in fines, rising from $22,000 to $110,000 or three times an agent's commission, signals that the government views underquoting not as a minor infraction but as a serious market distortion.
- A high-profile licence suspension involving over 100 properties has already put the industry on notice that the newly formed Strata and Property Taskforce is actively investigating, not merely watching.
- New transparency mandates would require every listing to carry a price guide and a published methodology, stripping away the ambiguity that has allowed misleading advertising to persist.
- NSW Fair Trading would gain the power to publicly name agents who breach the rules — a reputational consequence that may prove as powerful as any financial penalty.
- With industry consultation underway and legislation expected next year, the reforms are moving toward enactment, though their final form remains subject to negotiation with the property sector and parliament.
In a property market where advertised prices have long been treated with suspicion, New South Wales is moving to restore a measure of trust between buyers and the agents who serve them. Proposed legislation would sharply increase penalties for underquoting — the practice of listing homes below their likely selling price — while requiring agents to show their working, publishing the comparable sales data behind every price guide. The reforms, modeled on a Victorian framework that has quietly reshaped that state's market since 2016, reflect a government reckoning with the quiet erosion of confidence that occurs when the rules of a marketplace feel rigged.
New South Wales is preparing to significantly tighten its rules against real estate underquoting, the widespread practice of advertising properties below their likely selling price to generate competitive bidding. Under legislation the state government plans to introduce next year, fines for agents caught underquoting would rise fivefold to $110,000 — or three times the agent's commission, whichever is greater — giving regulators a far more powerful deterrent than the current $22,000 penalty.
Underquoting distorts the market by creating artificial urgency among buyers, who often discover only at auction that a property was always beyond their reach. Though already illegal under federal consumer law, the practice has persisted, and the Minns government argues that stronger penalties are needed to rebuild buyer confidence. Minister Anoulack Chanthivong framed the reforms as a direct response to public frustration, noting that the government is consulting with the property sector to ensure the changes are workable in practice.
The reforms go beyond penalties. Every property listing would be required to include a price or price guide, and agents would need to publish a statement explaining how that price was calculated, referencing comparable sales and median suburb data. These transparency measures are designed to make pricing visible and accountable. NSW Fair Trading would also gain the power to publicly name agents who breach the rules — a reputational sanction that could prove as consequential as any fine.
The government's approach is modeled on Victoria's underquoting framework, introduced in 2016 and broadly accepted by that state's real estate industry over the past decade. Victoria has since strengthened its own rules further, and NSW hopes to benefit from adopting a proven model. The final legislation will depend on ongoing consultation and parliamentary debate, but the direction is clear: the era of consequence-free price manipulation in NSW property advertising may be drawing to a close.
New South Wales is preparing to crack down on real estate agents who advertise properties below their likely selling price, a practice known as underquoting that has long frustrated buyers trying to navigate the property market. Under legislation the state government plans to introduce next year, agents caught underquoting could face fines of up to $110,000—a fivefold increase from the current $22,000 penalty. The fine could also be set at three times the agent's commission, whichever amount is larger, giving regulators a more potent enforcement tool.
Underquoting happens when an agent lists a property at a lower price than either the owner's asking price or the agent's own estimate of what it will sell for. The tactic creates artificial scarcity and competitive pressure among buyers, often leading to bidding wars that drive prices higher than the advertised figure. While the practice is already illegal under federal consumer law, NSW and most other states have layered on their own regulations to discourage it. The Minns government argues that stronger penalties are necessary to restore confidence in a market where buyers have grown skeptical of advertised prices.
Anoulack Chanthivong, NSW's Minister for Better Regulation and Fair Trading, framed the reforms as a response to public concern. "Our message is that we hear you," he said, adding that the government has developed a package of reforms and is now consulting with the property sector to balance consumer protection with practical implementation for agents and agencies. The proposed laws would give NSW Fair Trading's Strata and Property Taskforce, established earlier this year, new powers to take action against misleading conduct in property advertising and transactions.
The taskforce has already begun investigating underquoting cases. In August, it suspended the licence of Sydney agent Joshua Tesolin pending disciplinary action over what Fair Trading described as "serious and repeated" breaches involving more than 100 residential properties. That high-profile case underscored the scale of the problem and the government's determination to address it.
Beyond the penalty increase, the proposed reforms would require agents to include a price or price guide on every property listing—a measure designed to prevent buyers from wasting time viewing homes outside their budget. Agents would also be required to publish a "statement of information" with each listing that explains how the selling price was calculated, including reference to comparable sales and the suburb's median price. These transparency requirements aim to make the pricing process more visible and defensible.
NSW Fair Trading would gain additional enforcement powers under the reforms, including the ability to publish details of underquoting breaches—a form of public accountability that could damage an agent's reputation. A new standalone offence would also be created for agents who fail to meet continuing professional development requirements, tightening oversight of the industry more broadly.
The government is modeling its approach on Victoria's underquoting laws, introduced in 2016, which have been widely accepted by the real estate industry over the past decade. Victoria recently strengthened its own rules further, requiring agents to use the most appropriate comparable properties when pricing homes for auction. By adopting a framework that has already proven workable in another state, NSW hopes to avoid implementation problems while still achieving meaningful reform.
The final shape of the legislation will depend on consultation with the property sector and any amendments proposed by the opposition or crossbench members of parliament. The government expects to introduce the bill in the coming year, setting the stage for what could be a significant shift in how the NSW property market operates.
Citazioni salienti
Our message is that we hear you. We've developed a package of reforms and are now consulting with the sector to ensure we get the balance right between consumer protection and practical implementation for industry.— Anoulack Chanthivong, NSW Minister for Better Regulation and Fair Trading
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