PROPERTY, MORTGAGES & LOANS

Underquoting realestate

Bishwas Bhattarai, Senior Lending Manager
BS MIE, Dip FS

26 November 216

After a lot of debate among the industry professionals, vented frustration from buyers and sellers alike in respect to unethical selling practise from numerous estate agents NSW Government is committed to make it right for new buyers.

NSW fair trading new Underquoting reform is to be applied to the sale of NSW residential property from 1 January 2016.

The reform is designed to introduce the safe practise when exercising the selling of the residential property within the state of NSW as enhancement since the introduction to the Property Stock and Business Agent Act 2002.

The law address the underquoting with

clarity for buyers, sellers and agents. They address underquoting with:

  • clearer rules for agents. A key requirement is that agents must not give consumers understated or vague property prices (eg. promoting a property price as ‘offers above $450,000’)
  • more effective enforcement. During an inspection by a Fair Trading officer, agents must be able to provide appropriate documentation to show that they have complied with the new laws.

In the past there has been an outpouring frustration from the buyer especially during the auction when property were substantially underquoted well below the reserve price prior to going towards the market.

Agent who commit an underquoting offence may be fined up to $22, 000 and could lose their commission and fees earned from the sale of an underquoted property.

Please do not hesitate to contact us how the underquoting law affect you.

Prior to making an offer on the property do not hesitate to contact us we have numerous research and tools that allows to ensure that your buying experience is pleasurable and stress free.

Full article of this can be obtained by contacting AFHL.

Sydney’s leading buyer agent Nicole Jacobs states

“A lot of people spend a lot of money looking at property and getting building inspections done in the hope they can purchase a property,” she says.

“They might have spent $800 to $1000 on property inspections and not even be in that price bracket.

“They feel very frustrated, disillusioned … they’re just over it.”