Real estate agents in NSW who are caught underquoting will lose fees and commissions on the sale of those properties, as well as facing the existing $22,000 fine, announced Innovation and Better Regulation Minister Victor Dominello.

"Buying property is an expensive process, and when it comes to buying a home, there is also an emotional investment," Dominello said in Parliament earlier this week. "Particularly in this very robust real estate market, it is important that the government protects consumers where there are irregularities."

The reforms have been welcomed by the Real Estate Institute of New South Wales. “We believe that the commitment by the government to reform the property industry is vitally important for the future of the property market, consumer and profession,” said REINSW President Malcolm Gunning. "The property industry is the engine room of the state's economy and contributes in excess of $10 billion dollars in taxes to the government. The industry, and those that participate and serve the industry, need to treated with additional respect."

Gunning added that Government has permitted and encouraged inadequate education standards for entry to the profession, and the maintenance of profession skills. "The consumer has a legitimate expectation that the property professional advising them on the most important financial transaction most consumers will ever make is adequately trained and experienced," he said. “We are delighted to work with the government to stamp out one day training courses, raise entry level requirements and implement broader reforms."