NEW industry guidelines governing property price advertising to help avoid the practice of underquoting have been announced.
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The guidelines for real estate agents outline their legal responsibilities under the Property, Stock and Business Agents Act 2002 when selling property.
Underquoting occurs when an agent falsely understates the estimated selling price of a property in the course of marketing that property. It is an offence to advertise a selling price which is lower than the price specified in agency’s agreement with the seller.
“For most people buying a property is the biggest purchase they will make in their lifetime and the NSW government is working in partnership with the industry to ensure the law regarding price advertising and representations is clear to all real estate agents,” Kiama MP Gareth Ward said.
“We have also made a commitment to enhance legal protections against underquoting and we will be introducing legislation in the new Parliament.
“The proposed laws will clarify what constitutes underquoting, expand the existing financial penalties to include commissions and fees and place more stringent record-keeping requirements on real estate agents,” he said.
