Earlier this week, NSW Premier Mike Baird and Minister for Fair Trading Matthew Mason-Cox announced a re-elected Baird Government will crack down on underquoting by real estate agents in the property market.
Regular readers of Riverview Realty’s blog would know that underquoting is an issue we despise, but it is a topic that needs to be discussed, an as such, is one that we blog about regularly.
In the media release, the Premier of NSW states:
“The reforms will improve confidence among homebuyers and close any loopholes that agents may be exploiting,” Mr Baird said. “Under the new laws, it will be illegal for agents to advertise a property for less than the selling price they have outlined in their agreement with the vendor. We want to create a fairer system for potential buyers who are prepared to spend money on building and pest inspection reports believing the property is in their price range.”
“Agents caught underquoting already face fines of $22,000. Under the new laws, they will also lose all fees and commissions made from the sale. Buying a property is one of the biggest purchases many people will make, which is why we’re taking extra steps to ensure homebuyers have a fair marketplace. Underquoting cheats potential homebuyers and undermines the integrity of the real estate industry and we want to send a clear message to rogue real estate agents that it won’t be tolerated.”
Further in the release, Mr Mason-Cox, Minister for Fair Trading said changes will be made to legislation to clear up the confusion around what constitutes underquoting.
“The laws will be changed to recognise underquoting has occurred if the advertised selling price of a property is less than the price indicated in the agent’s agreement with the vendor,” he said. “The new laws will also focus on advertising and will require all property advertisements to specify a dollar price or price range as opposed to ‘offers over’ to give potential buyers a better idea of the real market value of the property. We’ll also protect vendors from agents who misrepresent a property’s potential selling price in return for the listing. All too often we hear about agents promising vendors a selling price they’re unlikely to ever achieve to secure their listing before pressuring them to agree to a lower price once the property sells.”
NSW Fair Trading has already begun acting on the real estate industry, very publicly probing agencies across the city, particularly in Southern parts of Sydney. Real Estate agents who have their training up to date, and have nothing to hide, welcome Fair Trading’s inspections.
Andrew Bruce & Samia Malouf
Riverview Realty is a boutique agency focused on achieving the maximum price, with a client engagement that is above the industry standard. We call it the “Ultimate Experience” which forms part of our unique selling proposition.
Ph. 02 9420 0083, 59 Tambourine Bay Road, Riverview.
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