The New South Wales government will introduce new laws this week to force property sellers to publish a price guide on all advertising and impose five times the fines for underpricing by estate agents.
The government says the bills, first reported last year, aim to crack down on agents who provide misleading price estimates on property listings, a practice often used to inflate interest.
Agents caught underpricing can now be fined $110,000 (five times the previous fine) or three times their commission, whichever is greater.
The “fictitious offer” will also result in a fine of $110,000.
The NSW government says it will also legislate to force sellers to publish a price guide on all advertising and require agents to publish a “disclosure statement” to help buyers understand how the price was calculated. This would include providing information on comparable sales and average prices.
Agents will also be prohibited from advertising a property for sale at a lower price than previously rejected.
The move comes amid a nationwide push for greater regulation of the real estate sector.
The Victorian government announced last week it would introduce similar disclosure rules to force agents to publish sales prices. If re-elected, Labor in Victoria says it would require suppliers to pay for mandatory building and pest inspections.
NSW Fair Trading Minister Anoulack Chanthivong said the government wanted “a fair housing market that works for everyone”.
“These reforms are an important step forward in protecting home buyers from unscrupulous real estate agents who take advantage of a tight housing market,” Chanthivong said.
“We are ensuring that misconduct can no longer be dismissed as a cost of doing business, but as a significant deterrent.
“The changes will also allow NSW Fair Trading to address property price misrepresentations through stronger disciplinary measures, better enforcement tools and improvements to mandatory educational and professional standards.”
