Does Underquoting prohibition (NSW Property and Stock Agents Act 2002) apply to real estate agents?

Underquoting prohibition (NSW Property and Stock Agents Act 2002). Under the Property and Stock Agents Act 2002 (NSW) and the Secretary's supervision guidelines issued under s 32, an agent underquotes when they state or advertise a price for a residential property that is below their reasonable estimate of its likely selling price. The agent must record that estimate in the agency agreement, keep it reasonable as market evidence arrives, and revise it, notify the seller and amend the agreement when offers, feedback or valuations show it is too low.

Trigger: Signing an agency agreement to sell a residential property, and every price statement made while marketing it: advertisements, listings, and spoken statements to buyers or sellers at open homes or by phone.

Rules Mate runs its applicability engine across 9 business structures and 6 size bands for each of the 35 industries it maps. For 34 of those industries the answer for "Underquoting prohibition (NSW Property and Stock Agents Act 2002)" is no. Real estate agents is one of the 1 where the answer is different: yes.

The deciding fact for real estate agents: Industry: Real estate agents.

About the industry: Selling agents, buyer's agents, and property developers involved in real estate transactions. From 1 July 2026 captured by AML/CTF Tranche 2 reforms.

Compare a professional services (general) business with 6–19 employees structured as a Pty Ltd company: the obligation does not apply (Requires industry: Real estate agents).

Each cell is the engine's outcome for a business in real estate agents with that structure and size, assuming it sells to consumers and small businesses and holds customer contact details. "Check" means the obligation turns on a fact the industry does not settle.

When due

Estimate recorded when the agency agreement is signed; revised promptly whenever evidence shows it is no longer reasonable; written record of each price statement made at the time it is made.

Evidence to keep

Agency agreement with the estimated selling price (and any amendments); evidence given to the seller showing how the estimate was reached or revised (comparable sales, buyer feedback, valuations); written offers; a record of every price statement with the property address, price or range, and date and time; written supervision procedures for setting estimates; records of steps taken to amend or retract outdated advertising.

Maximum penalty

A court-imposed fine of up to $22,000 for underquoting, or a $2,200 penalty infringement notice, plus possible disciplinary action against the licence and loss of the commission and fees for the underquoted property (NSW Government underquoting guidance, updated 8 July 2026).

Regulator

NSW Fair Trading

Jurisdiction

NSW only

• Hold a current real estate agent licence (state-specific): Yes
• Underquoting prohibition (Vic Estate Agents Act 1980): Yes
• Comply with Australian sanctions law + screening (DFAT): Yes
• Customer due diligence (KYC) on every customer: Yes
• Designate an AML/CTF Compliance Officer: Yes
• Detect + enhance due diligence on Domestic + Foreign PEPs: Yes
• All 26 answers for real estate agents