NSW Underquoting Laws From 17 November 2026: What Buyers Need to Know

From 17 November 2026, real estate agents selling residential property in NSW must include a selling price or price range in their advertising, and that price cannot sit below the agent’s estimated selling price, the highest registered bid at a passed in auction, or a written offer the seller rejected only because it was too low. Agents must also follow a set comparable sales method and keep records of how they set the price. A second stage starts on 8 February 2027, when a Statement of Information becomes mandatory for new residential agency agreements.

Key takeaways

• The new NSW underquoting rules start on 17 November 2026 under the Property and Stock Agents Amendment (Underquoting and Other Agent Conduct) Act 2026.
• Agent advertising for residential sales must show a selling price or price range. Non compliant online ads must be fixed or removed within 1 business day.
• Advertised prices have a floor: the estimated selling price, the highest registered bid at a passed in auction, or a written offer rejected only for being too low.
• Agents must use a set comparable sales search (2 km and 6 months in metropolitan areas, 5 km and 18 months elsewhere) and keep records.
• Court penalties for underquoting rise to up to $110,000 or three times the agent’s commission, whichever is higher.
• From 8 February 2027, a Statement of Information must be included in or linked from online ads and displayed at inspections.

What is changing in NSW on 17 November 2026?

NSW Fair Trading has confirmed that changes to price advertising, agency agreements, estimated selling prices, comparable sales and record keeping start on 17 November 2026. Higher penalties and new disciplinary powers for Fair Trading already started on 29 June 2026.

The changes come from the Property and Stock Agents Amendment (Underquoting and Other Agent Conduct) Act 2026 and a matching regulation. The NSW Government said when it announced the reforms that they were modelled on Victorian laws introduced in 2016.

In short, there are three stages:

• 29 June 2026 (already in force): higher penalties, new Fair Trading disciplinary powers, new powers over agency agreements and a new offence of impersonating a Fair Trading officer.
• 17 November 2026: price advertising rules, estimated selling price rules, the comparable sales process, record keeping and electronic storage of agency agreements.
• 8 February 2027: the Statement of Information and a new continuing professional development framework for agents.

What is underquoting?

Underquoting is when a property is advertised or promoted at a price that is lower than what the agent reasonably expects it to sell for. It draws in buyers who may not be able to afford the property and can cost them time and money on inspections, building reports and legal reviews.

Under the NSW rules, the agent’s estimated selling price must be “a reasonable estimate of the likely selling price of the property”. The agent must give the seller written notice of that estimate, with evidence, before the agency agreement is signed.

Will every NSW listing now show a price?

For residential sales arranged by an agent, yes. From 17 November 2026, advertisements must include a selling price or a price range. NSW Fair Trading has said it will not take action where a QR code in an ad links to the advertised price, as long as the ad makes clear that the code leads to the price.

A few points buyers should know:

• Online ads move fast: if an online ad no longer complies, the agent must update or remove it within 1 business day. Other ads must be updated as soon as practicable.
• Older ads are covered too: ads published before 17 November that show a price must be updated or removed if the estimate is revised, the property passes in at auction, or a low offer is rejected.
• Signs are partly exempt: a for sale sign on or next to the property does not need a price, unless it shows one.
• Ranges are limited: NSW Fair Trading’s consumer guidance says the top of a price range can be no more than 10% above the bottom, and terms such as “offers over” or a price followed by a plus sign are misleading.

What is the new price floor for advertised prices?

This is the change that matters most for buyers. From 17 November 2026, an agent must not advertise a price lower than any of these:

• the current estimated selling price
• the highest bid made by a registered bidder at an auction where the property was passed in
• a written offer the seller rejected only because it was too low

An agent also must not advertise a price below a figure the seller has said they will not accept.

In practice, this means a price guide should move up when the market tells the agent the original estimate was too low. If a property passes in at auction, the advertised price after the auction should not drop below the top registered bid.

How must agents work out the estimated selling price?

Agents must now follow a comparable sales process set out by NSW Fair Trading:

1. Search area and period: in metropolitan areas, properties within 2 km sold in the previous 6 months. Outside metropolitan areas, properties within 5 km sold in the previous 18 months.
2. Choose comparable properties: based on factors such as location, dwelling type, condition, size, bedrooms, land size and zoning.
3. Pick the three most comparable: where two are almost equally comparable, the more recent sale counts as more comparable.
4. Fewer than three found: in metropolitan areas, the agent repeats the 2 km search over the previous 12 months, then uses whatever comparables exist. Outside metropolitan areas, the agent uses whatever exists.

If the estimate stops being reasonable during the campaign, the agent must revise it, tell the seller in writing with the old and new price and the evidence, and amend the agency agreement. The agent must also tell the seller about offers that require a revision, even if the seller has asked not to hear about offers.

What records will agents have to keep?

From 17 November 2026, agents must record how they set the estimated selling price, including the comparables, sources and reasons for their choices. They must also keep records of written offers (amount, conditions, rejection date and reasons), notices to sellers and any revisions, including buyer feedback. Agency agreements entered into or amended from that date must be kept electronically for the life of the agreement and 3 years after it ends.

These records matter for buyers because they give NSW Fair Trading a paper trail if it investigates an underquoting complaint.

What penalties apply to agents who underquote?

According to NSW Fair Trading:

• Court penalty for underquoting: up to $110,000 or three times the agent’s commission, whichever is higher.
• Fair Trading disciplinary penalty for underquoting: up to $27,500 for individuals and $55,000 for corporations.
• Other powers: Fair Trading can require misconduct to be publicised, have estimates verified by a licensee in charge or an independent valuer, suspend agents from certain activities and direct further training.

During a transition period from 17 November 2026 to 7 February 2027, Fair Trading has said it will generally take an educative approach to the comparable sales and some record keeping and ad update requirements. It will apply its usual approach from day one to keeping copies of notices to sellers and records of written offers. Existing laws that require a reasonable estimate still apply in full.

What is the Statement of Information starting in February 2027?

From 8 February 2027, agents selling residential property under agency agreements entered into after that date must prepare a Statement of Information in the form approved by NSW Fair Trading. It must be:

• included in, or linked from, online ads
• displayed in a prominent place at inspections
• given to a buyer within 2 business days if requested, or with the contract for sale
• revised within 2 business days if the estimate and the comparables change

What does this mean for property investors buying in NSW?

For investors, the rules make the first screen of a property easier. A listing with a price or range lets you decide quickly whether it fits your plan, before you spend money on reports or legal checks. They also make it harder for a price guide to stay low after strong bids or offers.

The rules do not change the basics of buying well:

• An advertised price is the agent’s estimate, not a valuation, and not what the property will sell for. Do your own research on recent sales. Our guide to how to value a house in Australia explains the common methods.
• Sellers can still choose whether to accept any offer, and auction results depend on the bidders on the day. Our guide to buying at auction vs private sale covers how each process works.
• Cooling off rights and contract terms are unchanged. See cooling off periods across Australian states.
• Due diligence still matters as much as ever. Our due diligence checklist lists what to check before you sign.

What should buyers do now?

• Note the dates: listings that start after 17 November 2026 should show a price or range. The Statement of Information follows from 8 February 2027.
• Ask for the evidence: you can ask the agent which recent sales support the price guide. From February 2027, the Statement of Information will set this out.
• Watch for changes: if a property passes in or the guide changes, check that the new advertised price is consistent with the rules above.
• Keep notes: record the advertised price, dates and what the agent told you. If you think a property was underquoted, you can raise it with NSW Fair Trading on 13 32 20.
• Get help if you need it: a licensed buyers agent can assess comparable sales and represent you in negotiations.

Citadel Agency is a licensed buyers agency (licence 092247L) that helps investors buy in NSW and other states. You can read more about how we work on our NSW buyers agent page. If you would like to talk through a purchase, book a free strategy call.

Frequently asked questions

When do the new NSW underquoting laws start?

The price advertising, estimated selling price, comparable sales and record keeping rules start on 17 November 2026. Higher penalties started on 29 June 2026, and the Statement of Information starts on 8 February 2027.

Do NSW property ads have to show a price from 17 November 2026?

Yes. Advertisements for residential sales arranged by an agent must include a selling price or price range. A QR code that links to the price is accepted by NSW Fair Trading.

Can an agent lower the price guide after an auction passes in?

Not below the highest bid made by a registered bidder at that auction. The advertised price also cannot be lower than the estimated selling price or a written offer the seller rejected only because it was too low.

What is the penalty for underquoting in NSW?

A court can impose up to $110,000 or three times the agent’s commission, whichever is higher. NSW Fair Trading disciplinary penalties are up to $27,500 for individuals and $55,000 for corporations.

What is a Statement of Information in NSW?

From 8 February 2027, it is a document in the NSW Fair Trading approved form showing the estimated selling price and the comparable sales used. It must be in or linked from online ads and displayed at inspections.

Sources

• NSW Fair Trading: Changes to property and stock agents laws
• NSW Fair Trading: Statement of Regulatory Intent, underquoting reforms
• NSW Government: Price estimation and underquoting when selling a property
• NSW Government media release: tougher underquoting laws (13 November 2025)
• NSW Legislation: Property and Stock Agents Amendment (Underquoting and Other Agent Conduct) Act 2026 No 18

General information only. It does not take into account your objectives, financial situation or needs. Speak to a qualified professional before acting.

General information only. It does not take your objectives, financial situation or needs into account and is not financial, tax, credit or legal advice.