Who must comply with Underquoting prohibition (NSW Property and Stock Agents Act 2002)?

NSW real estate agents must not underquote — Maximum penalty $22,000.

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. Price ranges may not spread by more than 10 per cent, and terms such as 'offers over' or a '+' after a price are not permitted. NSW Fair Trading states a zero-tolerance approach, and has flagged new underquoting and price-advertising laws expected towards the end of 2026.

Applies when the business has industry: Real estate agents.

How the regulator frames it: Licensed real estate agents and agencies in NSW, and the licensee in charge who supervises them, when marketing residential property for sale, including multi-unit developments and multi-lot residential subdivisions.

What triggers it: 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.

Jurisdiction: New South Wales law only. A business with no operations in NSW is outside it, whatever the rest of the test says.

Outcome across the 35 industries Rules Mate maps (1 of 35: yes; 34 of 35: no).

Structure does not change the answer in real estate agents: for every structure the answer is "yes".

Size does not change the answer in real estate agents: at every size band the answer is "yes".

Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:

• Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: applies. Industry: Real estate agents.
• Pty Ltd company in accountants & bookkeepers with 6–19 employees, turnover $1M–$3M: does not apply. Requires industry: Real estate agents.

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.

Frequency

Ongoing

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.

Status

Current

Priority

High

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).

Rules Mate has not yet classified the audit or assurance level for this obligation. Any audit, review or certification requirement is set by the regulator source listed below.

If this obligation applies to you, so does this one: the engine uses the same rule for each.

• Underquoting prohibition (Vic Estate Agents Act 1980)

Across the 1,890 business profiles Rules Mate evaluates, these obligations apply to most of the businesses this one applies to, and are far more common among them than among businesses generally:

• Hold a current real estate agent licence (state-specific): applies to 100% of the same businesses (35.0× the overall rate)
• Designate an AML/CTF Compliance Officer: applies to 100% of the same businesses (4.4× the overall rate)
• Enrol with AUSTRAC as a reporting entity: applies to 100% of the same businesses (4.4× the overall rate)
• Maintain a written AML/CTF program: applies to 100% of the same businesses (4.4× the overall rate)
• Detect + enhance due diligence on Domestic + Foreign PEPs: applies to 100% of the same businesses (4.4× the overall rate)

Rules Mate tracks 4 published obligations tagged "real estate", 1 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 0 of those apply outright. This obligation is rated high priority, and is an ongoing duty.

Regulated by NSW Fair Trading.

NSW Fair Trading: Consumer protection, licensing (building, conveyancing, motor dealers), and tenancy regulator in NSW.

• NSW Fair Trading

Free tools that help with this obligation:

• Compliance calendar builder