The NSW government's new laws on property underquoting announced during the election campaign will toughen the penalties for agents found to be underquoting.
The changes are billed as making it easier for prosecutions to be brought against those agents found to be engaging in underquoting and will allow for forfeiture of fees and commissions in addition to the existing financial penalty of up to $22,000.
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.
"In many cases, these reforms would see a doubling of the financial sanction that could be imposed on agents doing the wrong thing," Minister for Innovation and Better Regulation, Victor Dominello told the NSW Parliament this week ahead of introducing the bill.
The Government will establish a strict liability offence, which is in line with the laws that have been introduced in South Australia.
The legislation will include stronger requirements for record-keeping and price representations, which will increase transparency for buyers.
"As an additional measure, I have asked the Department of Fair Trading to appoint an assistant commissioner for real estate and property who will work with the industry to build confidence amongst buyers and sellers and increase professional standards among real estate agents."