10 NSW Real Estate Agents Have Been Fined For Deceptive Practices

10 NSW real estate agents have been fined a total of $20,900 over the past 6 months for deliberately underquoting properties, a penalty that was recently tightened.

It comes as the Labor Government’s Name and Shame Register has spurred the auditing of almost 80 open home inspections. During these audits, undercover inspectors posed as buyers in search of the common deceptive practice: advertising a property at a price lower than its reasonable estimated selling price in order to attract more interest and artificially increase demand.

As part of the searches, the NSW Fair Trading’s Strata and Property Taskforce reviewed agency sales records, vendor feedback, and advertising material to determine whether price information provided to consumers was accurate and consistent with agency records.

Alleged offences included one instance in which a property’s expected selling price was listed for approximately half a million less than its true estimated value, and another in which an agent reported inaccurate purchaser feedback. Ahead of the spring selling season, the taskforce not only issued 10 fines across 80 open home inspections, but also five warnings and 16 education directives.

The Register Putting Deceptive NSW Real Estate Agents On High Alert

The Name and Shame Register, which has recorded 118,000 visits since February, allows prospective home buyers to access a public record of exactly these kinds of disciplinary actions taken against real estate agents, strata managers, and agencies. The hope is this will not only deter agents from misleading practices, but also help consumers make informed decisions before they sign on the dotted line.

“Buying a home is one of the biggest financial decisions you can make,” said Minister for Better Regulation and Fair Trading Anoulack Chanthivong, “and people deserve confidence that price information is accurate and transparent.

“This operation shows that NSW Fair Trading is actively monitoring the market and taking swift action where real estate agents are not meeting their obligations.”

Strata and Property Services Commissioner Angus Abadee warned that businesses willing to cut corners or ignore rules should be on alert.

“The overwhelming majority of property professionals do the right thing,” said Abadee, “but those willing to push the boundaries should be on notice that Fair Trading officers could be at their next open home.”