Conveyancing Free Quote NSW

A new piece of legislation aimed at eliminating underquoting by Real Estate Agents was passed by the NSW Parliament on 22 October 2015.

The Act is titled “The Property, Stock and Business Agents Amendment (Underquoting Prohibition) Act 2015“.

The Act provides that:

  1. Agents can no longer use the words “offers over” or “offers above” in their advertising.
  2. Agents cannot include in their advertising a price that is lower than the minimum price estimated by the Agent in the Agency Agreement between the Agent and the Seller (you see, part of the Agency Agreement states the Agent’s opinion of the likely or estimated selling price).
  3. Agents can include price ranges in their advertising provided the lowest price stated is not lower than the minimum price estimated by the Agent in the Agency Agreement, and the price range is within a 10% range for example “Price Range $500,000 to $550,000”.
  4. Agents are able to stay silent on the price in advertising and when speaking with prospective buyers. So, Agents are allowed not to give an indication of price, verbally or in writing.

The Act also reminds Agents of their obligation to provide a reasonable estimate of the likely selling price in the Agency Agreement, such estimate to be used by the Agent as a guide when advertising the property for sale.

The Act also provides that if an Agent tells a prospective buyer an estimate of the selling price, the Agent must record, in writing, details of the conversation and the price given to the prospective buyer, and the Agent must maintain such records for at least 3 years.

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