Understanding Underquoting Laws in NSW
Underquoting remains a major compliance focus for NSW Fair Trading.
Real estate agents must ensure property price guides are realistic, evidence-based, and regularly updated.
What Is Underquoting?
Underquoting occurs when a property is marketed at a price significantly below the likely selling price.
This can mislead buyers and damage confidence in the property market.
Agents Must Use Evidence
Price guides should be based on:
- Comparable sales
- Current market conditions
- Property features
- Vendor instructions
Price Guides Must Be Updated
If buyer feedback or market activity indicates the guide is unrealistic, agencies may need to revise pricing.
Potential Penalties
Breaches can result in:
- Significant fines
- Investigations
- Disciplinary action
- Reputational damage
Transparent pricing practices are essential for ethical real estate operations in NSW.