Recently inspectors from NSW Fair Trading carried out checks on NSW Real Estate agents & released their findings, the below is an extract direct from NSW Fair trading
"Results from underquoting compliance inspections
NSW Fair Trading inspectors visited 87 agents in the Greater Sydney Metropolitan area in June to check compliance with underquoting rules. If you are an agent, follow the underquoting rules when selling property to avoid financial penalties. A breach may result in a $2,200 fine for an agent or a corporation.
Inspection results – June 2023
NSW Fair Trading inspectors conducted 87 agent inspections, 15 of these were undercover. 45 (of the 87 inspections) were to previously non-compliant agents. 66% of these agents were found to be compliant – a positive outcome that shows most agents are taking action to do the right thing.
50 agents were not compliant with the underquoting rules. The most common breaches included:
lack of written records for verbal price representations
unreasonable estimated selling prices
failure to comply with licensee’s rules of conduct and the supervision guidelines.
28 agents were fined, losing a total of $52,800 for a range of breaches including underquoting. 10 agents received warning letters and 12 received verbal warnings and guidance. Remember to follow the rules You can only promote a property for sale with accurate information, including a reasonable and fixed selling price. You cannot promote a property price as:
an estimated amount, for example $XXX,000+
'offers over' or 'offers above' a certain amount (or any similar statements).
If the estimate is a range, an agent can quote that range as long as the higher price does not exceed the lower price by more than 10%. For example, $500,000-$550,000."
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