The Minns Labor Government has continued its crackdown on underquoting by issuing 'please explain' notices to 25 real estate agencies in NSW showing indicators of misleading price estimates in recently sold properties.
As part of 'Operation Sunlight', NSW Fair Trading has issued notices to real estate agencies asking them to produce files related to the sale of ten identified properties each. Strata and Property Taskforce inspectors examined documents for sold properties to measure the percentage gap between sales and advertised prices, with one property showing a 150 per cent difference.
To respond to the issued notices, the agencies are required to provide Taskforce inspectors with documents from each sale, including comparable market analyses, vendor correspondence, correspondence with buyers and prospective buyers, and bidders' records if sold at auction.
NSW real estate agent licensees must keep up to date records for three years on matters including price quotations.
The 25 real estate agencies issued notices don't include a further 15 agencies currently under investigation by NSW Fair Trading for underquoting, identified through the regulator's proactive Anytime, Anywhere audit program and new intelligence product developed by the Taskforce.
Backed by an $8.4 million investment, the Taskforce has completed 164 Anytime, Anywhere audits in 2025 so far. In total this year, NSW Fair Trading has issued 33 agents with penalty infringement notices of a value of $2,200 per notice.
This also follows the Government's announcement of proposed reforms to overhaul the state's underquoting laws and boost buyer confidence in the property market earlier this month, including significantly increased penalties for underquoting of up to $110,000 or three times the agent's commissions (whichever is higher), 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.
NSW Fair Trading has also issued 50 caution letters to real estate agents where it has identified potential underquoting breaches by agents and reminded Licensees in Charge of supervision obligations.
Taskforce inspectors will issue a further 25 agencies similar notices to produce in coming weeks and will be continuing to undertake its Anytime, Anywhere program across NSW to examines an agent's records on underquoting as part of the audit checklist.
NSW Fair Trading will review the documents and can take regulatory action against property agents who have breached regulations by issuing warnings or penalty notices, or by the start of a formal investigation. NSW Fair Trading can also take action against a real estate licence holder via suspension or cancellation, or disqualification of individual or company licenses or certificates.
For more information on underquoting laws, please visit: https://www.nsw.gov.au/housing-and-construction/buying-and-selling-property/selling-a-property/price-estimation-and-underquoting
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said:
"Operation Sunlight is an important tool in the Government's arsenal to crackdown on underquoting - to shine a light on this unlawful behaviour, to take decisive action to protect consumers, and to restore confidence in the sector.
"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.
"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."
