This article is from the Australian Property Journal archive
THE NSW Fair Trading office will blitz real estate agencies and auctions across Sydney to crack down on underquoting after 33 surprise inspections last weekend caught 14 breaches.
NSW Minister for Better Regulation Kevin Anderson said teams of inspectors will be focusing on the illegal practice of falsely advertising property or indicating it will sell for less than its estimated selling price.
Anderson said in one recent weekend alone, Fair Trading inspectors identified 14 breaches while inspecting 33 sales agents.
“Last week we issued almost $6,000 in fines for a range of offences, including underquoting, operating without a licence and failing to have the right insurance.
“We will also be using this opportunity to educate the industry and ensure agents are crystal clear on their obligations under the law,” he added.
Under reforms to the Property Stock and Business Agents Act that commenced in 2016, agents who commit an underquoting offence can be fined up to $22,000 and could lose their commission and fees earned from the sale.
The announcement comes as Sydney’s auction market recorded over 80% clearance rates for four weekends in a row.
Anderson said with so many people in NSW looking to buy, the last thing that potential homebuyers need is to have their time and money wasted by real estate agents providing misleadingly low and incorrect price estimates.
“That’s why I’m sending teams of Fair Trading inspectors on operations across Sydney’s suburbs to ensure agents are doing the right thing, and buyers are protected under the legislation,”
Anderson said there are simple steps prospective homebuyers can do to protect themselves from underquoting.
“While an agent does not have to publicly disclose a price while marketing a property, you should still always ask the agent what their estimated selling price and what the seller’s expectations are if you are interested in the property.
“We want buyers to do their homework. Researching recently sold properties in the area will give you a good idea of what to expect – and if the price is dramatically different for a similar property, question it,”
Anderson said if potential homebuyers suspect that an agent has deliberately underquoted their reasonable estimate of a property’s likely selling price, they should report it with Fair Trading.
