The NSW's Government's new laws on property underquoting will lead to tougher penalties and fines for agents caught underquoting.
The new laws will not only carry the current penalty of $22,000 but will also make it easier for prosecutions to be brought against agents and to impose a forfeiture of fees and commissions for sales involving underquoting.
Speaking to the NSW Parliament last week Minister for Innovation and Better Regulation Victor Dominello said, "In many cases, these reforms would see a doubling of the financial sanction that could be imposed on agents doing the wrong thing.""For example, the average property price in Sydney is $900,000. Based on that, a commission would be $18,000. Therefore, in addition to a fine of up to $22,000, a real estate agent could lose fees of $18,000."The NSW Government has also outlined the requirements for record-keeping and price representations, which will increase the transparency for buyers.
The new requirements were drafted in consultation with the Estate Agents Co-operative, Real Estate Institute NSW and other stakeholders.
Speaking to the Australian Financial Review, REINSW President Malcolm Gunning said, "We believe that the commitment by the government to reform the property industry is vitally important for the future of the property market, consumers and the profession.""We are delighted to work with the government to stamp out one-day training courses, raise entry-level requirements and implement broader reforms."