Real estate agents in New South Wales may face significant penalties under proposed legislation aimed at curbing misleading price estimates and enhancing transparency for buyers. The Minns government is consulting with the property sector as it prepares to draft these new laws, expected to be introduced to parliament next year.

Proposed Legislation Overview
The new regulations would impose fines of up to $110,000 on agents found guilty of underquoting properties, a practice where agents advertise a property at a lower price than its estimated selling price to attract buyers. This tactic is considered deceptive and is already prohibited under federal consumer law, with many states, including NSW, implementing additional regulations to combat it. Anoulack Chanthivong, the NSW Minister for Better Regulation and Fair Trading, emphasized the need for stronger laws to restore trust in the property market.

Consultation with the Property Sector
The government has initiated discussions with stakeholders in the real estate industry to ensure that the proposed reforms strike a balance between consumer protection and practical implementation. Chanthivong stated, "Our message is that we hear you," indicating a commitment to addressing concerns raised by both buyers and industry professionals. The taskforce established by NSW Fair Trading has already identified instances of alleged underquoting, including a notable case involving agent Joshua Tesolin.

Increased Penalties and Requirements
Under the proposed changes, fines for agents caught underquoting would rise significantly from $22,000 to $110,000, or three times the agent’s commission, whichever is greater. Additionally, agents would be required to include a price or price guide in all property listings to prevent buyers from wasting time on properties outside their financial reach. A “statement of information” would also need to be published, detailing how the selling price was determined, including comparable sales and median prices in the area.

Enhanced Oversight and Accountability
NSW Fair Trading, the state’s consumer regulator, would gain expanded authority to take disciplinary action against agents, including publicizing details of underquoting violations. The proposed legislation also introduces a standalone offense for agents who fail to meet continuing professional development requirements. These measures aim to enhance accountability within the real estate sector and improve overall market integrity.

Wrap-up
The proposed reforms by the New South Wales government reflect a growing concern over transparency in the property market. By implementing stricter regulations and increasing penalties for underquoting, the government aims to foster a fairer environment for prospective buyers and restore confidence in real estate transactions.

Sources
theguardian.com

@hoju-korean.com Editorial Team