The NSW government is cracking down on real estate agents underquoting house prices after an investigation revealed one property sold for 150 per cent more than the advertised price.
‘Please explain’ notices have been issued to 25 real estate agencies that mislead price estimates in recently sold properties across NSW, while another 15 are under investigation.
Caution letters have also been sent to another 50 real estate agents where potential underquoting was identified.
Under Operation Sunlight, a NSW Fair Trading taskforce developed a new intelligent audit program Anytime, Anywhere that can identify when properties have been underquoted.
Taskforce inspectors examined documents for sold properties to measure the percentage gap between sales and advertised prices, with one property showing it sold more than double the advertised price.
Inspectors have now asked dozens of real estate agencies to produce files related to the sale of 250 properties.
Agencies will be required to provide documents from each sale, including comparable market analysis and correspondence with vendors, buyers, prospective buyers and auction bidders.
The taskforce has completed 164 audits this year, resulting in 33 agents being fined $2200 each.
Better Regulation and Fair Trading Minister Anoulack Chanthivong said Operation Sunlight was an important tool in the government’s arsenal to crackdown on underquoting and shine a light on this unlawful behaviour.
“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 when advising homeowners about sales campaigns,” she said.
“Coupled with our new package of proposed reforms, the government’s increased enforcement capabilities help us to target underquoting practices in real-time and boost transparency across the industry.
“Together, these actions put real estate agents who break the law and mislead consumers on notice.”
The NSW government has vowed to reform underquoting laws and introduce steep penalties for underquoting up to $110,000 or three times an agent’s commission.
They have also proposed a mandated price or price guide on all advertising, and the publication of a statement of information to help prospective buyers understand how the selling price was calculated.
