Tim James
Shadow Minister for Small Business
Shadow Minister for Fair Trading, Work Health and Safety and Building
The Minns Labor Government has been exposed as going soft on underquoting by real estate agents. Shadow Minister for Fair Trading Tim James called on the Minns Labor Government to get serious about stamping out underquoting to restore certainty and confidence for those seeking to buy a home.
It was revealed in Budget Estimates today that Fair Trading conducted a total of 379 investigations into underquoting during FY2023-24 that found 148 breaches. Only $143,000 in total fines were issued in response.
“This is a drop in the ocean when NSW needs a strong deterrent sent to unscrupulous agents. Instead, enforcement and penalties are currently so meagre as to be meaningless. It is nothing but a slap on the wrist,” Mr James said.
“Searching for a new home is tough enough as it is without the false hope created by a misleading price guide designed solely to drum up interest in a property.”
“Every weekend across the state we see the disappointment of buyers losing out on a home which has sold well over its advertised price guide. These are buyers that have taken the time to attend inspections and pay for property reports, yet the home was always beyond their price range.”
“It was clear at Budget Estimates that the Minister has no plan to tackle underquoting or strengthen penalties to end this unfair and deceptive practice.”
“The Government’s Taskforce on underquoting is leaderless and without direction, with the Strata and Property Services Commissioner role having been left vacant for months.”
“Fair Trading has favoured warnings and small fines, with not a single prosecution and the maximum penalty of $22,000 having never been imposed. Fines need to send an effective deterrent - they can’t just be considered a cost of doing business.”
“Homebuyers are crying out for clarity and confidence in price guides without the tactics that deliver nothing but false hope.”