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In a move it says supports a fairer property market, the Government passed a Bill that increased penalties for underquoting, tightened the rules around advertising a price, and gave NSW Fair Trading greater enforcement powers.

The New South Wales Government today passed the Property and Stock Agents Amendment (Underquoting and Other Agent Conduct) Bill 2026 in Parliament, aimed at curbing the practice of real estate agents underquoting property for sale in the state.

Often criticised by affordable housing advocates, underquoting occurs when a real estate agent advertises a property on the market at a lower price than the owner expects to sell it for, to attract more parties, artificially generating interest and helping to raise the price.

The Bill raises the penalties on agents for underquoting from $22,000 to $110,000, or three times the agent’s commission (whichever is greater), and on businesses that engage in dummy bidding at actions from $55,000 to $110,000.

It’s now mandatory to advertise properties with a price guide, and agents are prohibited from advertising a selling price lower than a previously rejected offer or the highest unsuccessful bid at an auction.

Minister for Better Regulation and Fair Trading Anoulack Chanthivong said these reforms “will ensure homebuyers aren’t wasting their valuable time and money during one of the most important moments of their lives.”

NSW Fair Trading received additional powers to enforce these rules, including the power to demand property price estimates from independent, qualified valuers and to require agents to publicly disclose breaches of the law.

Through NSW Fair Trading’s Name and Shame Register, buyers, sellers, renters, and landlords can find out the history of the real estate agents and strata managers they are engaging with.

“These laws mean that honesty and transparency are now the standard for property sales,” said Chanthivong.