There are new ‘under-quoting laws’ that apply in NSW for the sale of residential property from 1 January 2016. They are primarily aimed at ‘offers over’ advertising, and also realistic price estimates for auctions.
An agent commits an offence if they advertise a price that is less than their reasonable estimate of the property’s likely selling price, as contained in the agency agreement.
Agents who commit these offences could be fined up to $22,000 and lose their commission and fees from that sale.
A recent review published in the Sydney Morning Herald found 176 violations of the new laws, and the suburb with the highest number of breaches was Penrith where 27 breaches were detected between two real estate agents.
It is helpful if purchasers understand their rights before making offers on properties or investing significant time investigating properties. If you are looking to purchase a property you should speak with Bruce Coode about your rights as a purchaser.
We will be having (free) community seminars this year, and one of the topics will be real estate laws. If you are interested please email email@example.com so we give you details regarding that.