What Do the New NSW Underquoting Laws Mean for Buyers and Sellers?
A price on every advertisement, evidence behind every guide, and a new Statement of Information. Here is what is changing, when, and what to do about it.
What do the new NSW underquoting laws mean for buyers and sellers? Price guides are about to become compulsory, backed by evidence and much harder to fudge, with fines of up to $110,000 or three times the agent’s commission for underquoting. Some changes are already in force. The big advertising changes are expected from November 2026, and the Statement of Information from February 2027.
At a glance
- Are the new laws in force yet? Partly. Higher penalties and stronger Fair Trading powers started on 29 June 2026. The price and advertising rules are expected from November 2026, and the Statement of Information from February 2027.
- What changes for buyers? Agents will need to show a price or price range in every advertisement they arrange, apart from a sign at the property. A Statement of Information will explain how the price was worked out.
- What changes for sellers? Your agent must base the estimated selling price on the three most comparable sales, keep records of how they set it, and update online ads within 1 business day when it changes.
- How big are the penalties? Up to $110,000 or three times the agent’s commission, whichever is higher. The old maximum was $22,000.
What is underquoting, and what exactly is changing?
Underquoting is when an agent advertises or quotes a price below their own reasonable estimate of what the property will sell for. It lures buyers in, creates competition and wastes the time and money of everyone who was never going to afford it.
The new rules come from the Property and Stock Agents Amendment (Underquoting and Other Agent Conduct) Act 2026, which passed in June. Parts of it started straight away, and the rest start on a date set by proclamation. NSW Fair Trading has told the industry to prepare for November 2026 and February 2027, so treat those as expected dates, not guaranteed ones. We will update this article when they are confirmed.
| When | What changes |
|---|---|
| In force since 29 June 2026 | Penalties for underquoting rise to $110,000 or three times the commission. Dummy bidding penalties for businesses double to $110,000. Fair Trading gets stronger enforcement powers. |
| Expected November 2026 | A price or price range in all advertisements. Estimates built on comparable sales. Online ads updated within 1 business day. Detailed records kept. |
| Expected February 2027 | Statement of Information in the approved form, available with online ads, displayed at inspections and given to prospective buyers in specified circumstances. |
What buyers often think
“It sold for more than the guide, so the agent must have underquoted.”
What actually happens
Not necessarily. Underquoting is advertising a price below the agent’s reasonable estimate, not a property selling above its guide. Competition between buyers can push a price past anything an agent could have predicted. The test is whether the guide matched the estimate in the agency agreement, and whether that estimate was reasonable and backed by evidence.
What changes from November 2026?
These are the advertising and pricing changes Fair Trading has flagged for agents.
A price or price range in every advertisement
Property websites and apps, social media and email will all need to show a selling price or range. A for sale sign at the property does not need a price, but if it shows one, it has to comply.
No guide below a rejected offer or the highest auction bid
Agents cannot advertise a price below the highest bid at an auction that was passed in (vendor bids do not count), or below a written offer the seller rejected only because it was too low.
Online ads fixed within 1 business day
If an online advertisement stops complying because the estimate changed or an offer was rejected, it must be updated or removed within 1 business day.
Estimates built on three comparable sales
When an agent sets or revises the estimated selling price, they must consider the 3 most comparable sales. In metropolitan areas that means within 2 km and sold in the past 6 months. In non metropolitan areas it means within 5 km and sold in the past 18 months. Fair Trading is still to publish guidance on how this works.
Records of every pricing decision
Agents must keep detailed records of how they set or revised an estimate, and keep agency agreements electronically.
The existing rules stay. If an agent uses a price range, the top cannot be more than 10% above the bottom, so $500,000 to $550,000 is fine but $500,000 to $600,000 is not. Phrases like “offers over $900,000” and “$900,000+” remain banned, because they hide the real expected price.
What is a Statement of Information?
From February 2027, an agent engaged to sell a residential property will need to prepare a Statement of Information in the approved form. It must be made available with online advertisements (or linked from them), displayed at inspections, and given to prospective buyers in specified circumstances. An earlier industry summary of the legislation suggested a copy within 2 business days of a buyer asking for one, but the final detail is still to come.
The model is Victoria’s system, where the statement shows the comparable sales behind the price and the suburb median. Fair Trading has said it will release the draft form and guidance well before the start date.
A guide tells you where the agent started. The contract tells you what you are actually buying.
What should buyers do?
- Use the guide and the Statement of Information as a starting point. Check the comparable sales yourself and decide your own ceiling before you fall in love with a place.
- Get the contract early. You can ask for it as soon as a property is listed. Have it reviewed before you pay for building and pest reports, or before you bid.
- Know your limit before auction day. There is no cooling-off period on a property bought at auction, so the decision on the day is binding.
- Do not assume a higher sale price is illegal. If an advertisement looks wrong, ask the agent for the estimate behind it, and you can complain to NSW Fair Trading.
What should sellers do?
- Expect to see the evidence. Your agent should show you how they reached the estimate. Ask which comparable sales they chose and why.
- Expect the price to be public. Once the advertising rule starts, a campaign with no price will not be an option. Agents can still advertise above the estimate if you instruct them to, but never below it.
- Expect revisions. If offers or buyer feedback show the estimate is no longer reasonable, your agent must notify you in writing and amend the agency agreement, and the ads must follow.
- Have your contract ready before you list. A contract of sale must be prepared before a property can be offered for sale. With prices and statements going public, buyers will be reading your contract sooner. See what it costs to get a contract of sale.
Buying or selling in the Hunter or Lake Macquarie? Send us the contract today and we will review it before the price conversation gets ahead of you.
Does everyone agree with the changes?
No. Buyer advocates and Fair Trading say transparency was overdue. The Real Estate Institute of NSW has raised concerns about the impact on sellers, and some agents point out that looking back at past sales can lag a fast moving market. Parts of the detail are still being finalised, so watch for Fair Trading’s guidance before the start dates.
The short version
The new NSW underquoting laws make price guides compulsory in advertising, require agents to prove their estimates with comparable sales, and add a Statement of Information from early 2027. Penalties are already up to $110,000 or three times the commission. Buyers get better information but should still do their own research and read the contract early. Sellers should expect their price to be public, their agent to show their working, and the guide to follow any change in the estimate.
Sources
Buying or selling in the Hunter?
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