UPDATE: The NSW Government has launched an urgent crackdown on real estate agents who mislead buyers through underquoting, following alarming findings that one property sold for a staggering 150 percent above its advertised price. Just announced, 25 real estate agencies have received “please explain” notices, while an additional 15 agencies are under investigation. This action comes as part of Operation Sunlight, aimed at increasing transparency in the real estate industry across New South Wales.
Authorities report that the crackdown stems from a rigorous investigation by the NSW Fair Trading taskforce. Inspectors utilized a newly developed intelligent audit program, Anytime, Anywhere, to identify significant discrepancies between advertised prices and actual sales. Shockingly, some properties sold for more than double their listed prices, prompting inspectors to demand documentation from real estate agencies related to the sale of 250 properties.
Minister for Better Regulation and Fair Trading, Anoulack Chanthivong, emphasized the importance of these measures: “Underquoting is not only bad for people looking to buy a home but also frustrates and harms the real estate agents who do the right thing.” Each of the 33 agents fined this year faced penalties of $2,200 each, illustrating the government’s commitment to tackling this unlawful behavior.
The NSW Government is moving swiftly to reform underquoting laws, with proposed penalties reaching up to $110,000 or triple an agent’s commission for violations. Plans also include mandatory price guidelines on all advertising to ensure prospective buyers are fully informed.
This crackdown is not just a regulatory measure; it holds profound implications for buyers navigating the challenging real estate market. With housing affordability under constant scrutiny, the government’s actions aim to protect consumers from misleading practices that can inflate property expectations and lead to financial distress.
The taskforce has conducted 164 audits so far this year, signaling a robust approach to enforcement. As the investigation unfolds, the NSW Government urges all real estate agencies to comply with new transparency requirements, including providing detailed market analyses and communication records related to property sales.
What’s Next? As the NSW Government intensifies its efforts, real estate professionals are on notice to align with these new regulations or face severe consequences. The public can expect further updates as investigations progress and additional measures are put into place.
Stay tuned for more developments on this urgent issue as the NSW Government works to ensure a fair and transparent real estate market for all.
