The NSW government has announced new guidelines for the real estate industry to try and stop the practice of underquoting. Underquoting—when an agent falsely understates the selling price of a property by naming a price which is lower than the price specified in the agency’s agreement with the seller—is an offence under the Act.

“For most people buying a property is the biggest purchase they will make in their lifetime and the NSW Government is working in partnership with the industry to ensure the law regarding price advertising and representations is clear to all real estate agents,” said NSW Innovation and Better Regulation Minister Victor Dominello in announcing the new guidelines, which were developed in consultation with the Estate Agents Co-operative. “We have also made a commitment to enhance legal protections against underquoting and we will be introducing legislation in the new Parliament,” said Dominello, whose portfolio covers NSW Fair Trading.

The guidelines are designed to provide agents with clarity over what constitutes underquoting and how it can be avoided. They contain guidance on specifying price guides in line with vendors’ expectations and ensuring online listings are maintained and kept updated for the benefit of potential buyers.

Estate Agents Co-operative CEO David Crombie said, “We understand there has been difficulty, especially in the Sydney market, to make accurate estimates on pricing. In light of a volatile market agents should review their estimates and any marketing to reflect any change to the price estimate as a result of market or vendor feedback. We welcome the guidelines announced by the Minister and feel they will make clear to agents as well as to consumers, the responsibilities when making these estimates."