Under the new legislation, underquoting agents would face the forfeiture of fees and commissions on top of the already existing fine of up to $22,000.
Based on the average Sydney property price of $900,000, the new laws could cost an underquoting agent somewhere in the vicinity of of an additional $18,000.
Speaking about the legislation, that will be introduced later this year, in Parliament last week, NSW Minister Minister for Innovation and Better Regulation Victor Dominello said the government was committed to a range of reforms to boost professionalism and standards in the industry.
“Buying property is an expensive process, and when it comes to buying a home there is also an emotional investment,” Dominello said
“Particularly in this very robust real estate market, it is important that the Government protects consumers where there are irregularities.”
The new legislation will also see the government clarify underquoting and establish a strict liability offence, which is in line with the laws that have been introduced in South Australia.
Under the new legislation, agents will face stronger requirements for record-keeping and price representations and the Department of Fair Trading to appoint an assistant commissioner for real estate and property to work with the industry.
