New underquoting laws that cover the sale of residential properties in NSW are now effective, including provisions that prohibit the use of phrases like “offers above” in advertising material.
The amendments to the Property Stock and Business Agents Act 2002 came into effect on January 1 and are designed strengthen consumer protections.
Amendments include agents being required to provide evidence of their estimate selling price to the vendor, agents becoming liable to forfeit commission acquired from an underquoted sale and a requirement that agents keep a register of prices quoted on a property.
An agent is committing an underquoting offence if they state or publish a price for a property that is less than their reasonable estimate of the property’s likely selling price contained in the agency agreement with the seller.
This practice of underquoting can cause interested buyers to waste time and money on inspecting properties, getting reports and attending auctions based on misleading estimates of the selling price.
Read our Guideline for more information on the advertising requirements: