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The NSW Government has passed legislation that increases maximum penalties for real estate underquoting fivefold, from $22,000 to $110,000, as part of a sweeping overhaul of agent conduct rules backed by an active enforcement operation targeting dodgy pricing practices across the state.
The Property and Stock Agents Amendment (Underquoting and Other Agent Conduct) Bill 2026 mandates that agents publish price guides on all property advertising and produce a statement of information showing how selling prices were calculated.
Under the new regime, agents face fines of $110,000 or three times their commission, whichever is greater, for underquoting offences.
Penalties for dummy bidding at auctions have also doubled from $55,000 to $110,000, while NSW Fair Trading gains expanded enforcement powers including the ability to compel agents to publicly disclose breaches and to require independent valuer checks on listed properties.
The reforms follow a confidential consultation process with industry bodies including the Real Estate Institute of New South Wales, which broadly supports the NSW Government's push to strengthen pricing transparency but lobbied for workable reforms that balance consumer protection with practical agency operations.
While the Bill has received parliamentary passage, the main underquoting provisions will commence on a date to be appointed by proclamation. No commencement date has been set.
“The focus of the Minns Labor Government is simple: a fair property market that works for everyone," says Anoulack Chanthivong, the NSW Minister for Better Regulation and Fair Trading.
“Our underquoting reforms will ensure homebuyers aren’t wasting their valuable time and money during one of the most important moments of their lives.
“Because whether you’re buying your first home or are looking for somewhere with a bit more room for a growing family, you should know exactly what is or isn’t in your budget.
“These laws mean that honesty and transparency are now the standard for property sales.”
The legislative changes are being enforced alongside Operation Sunlight, a targeted compliance campaign that has issued "please explain" notices to 25 agencies, with a further 15 under investigation.
The operation is backed by an $8.4 million Strata and Property Taskforce investment that completed 164 audits in 2025.
One flagged property revealed a 150 per cent gap between the advertised price guide and the final sale price. So far, 33 agents have received $2,200 penalty infringement notices and 50 caution letters have been issued.
The crackdown comes amid longstanding concerns from buyers who say underquoting wastes their time and money by luring them into campaigns for properties priced well beyond their budget.
The new Statement of Information requirement is modelled on a similar regime operating in Victoria, where agents must disclose comparable sales data and the rationale behind their estimated selling price.
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