The NSW Government has introduced the Property and Stock Agents Amendment (Underquoting and Other Agent Conduct) Bill 2026 into Parliament.
If passed, this Bill proposes significant changes to underquoting laws and broader agent conduct, which may impact your agency’s processes, compliance obligations and sales practices.
Now is the time to get across the proposed changes and start preparing.
We strongly encourage you to review the proposed reforms and begin considering how your business may need to adapt.
What’s being proposed?
1. Stricter underquoting rules
It is an offence to advertise a selling price that is lower than the estimated selling price, the highest registered bid at an auction where the property was passed in or the amount of a rejected written offer where the only reason it was rejected by the vendor was that the price was too low. The same applies to verbal price guidance.
2. Mandatory pricing in residential sales adverts.
Residential sale ads must include a selling price or price range, except for sale signs and any exempt classes prescribed by regulation.
3. Faster updates to advertising (1 business day for online advertising)
If the estimated selling price changes, the property is pass in at auction or a written offer is rejected because it was too low, the agent must take all reasonable steps to amend or remove non-compliant ads – for online ads within 1 business day, or otherwise as soon as practicable, after the agent becomes, or ought reasonably to have become, aware of the event.
4. Tighter estimated selling price requirements
An agent cannot enter into a sales agency agreement unless the agreement includes the agent’s reasonable estimate of likely selling price, and before entering into the agreement the agent must give the vendor supported evidence of reasonableness of the estimate. If a range is used, the top of the range must be no more than 10% above the bottom. There are also additional requirements when revising an estimated selling price.
5. New Statement of Information to be provided to prospective buyers
A sales agent must prepare a statement of information in the approved form with the prescribed information, prominently display it at inspections, provide it to prospective purchasers within 2 business days if they request it or a copy of the proposed contract for sale, include it in (or link it from) online ads, revise it as prescribed and keep the original and revised versions for at least 3 years.
6. Substantially increased penalties (up to $110,000 or 3 x commission)
Agents must revise the estimate if it stops being reasonable, give the vendor written notice of the revision and evidence of its reasonableness, and amend the agency agreement. Comparable sales must be considered in line with the regulations and Secretary’s ESP guidelines. Breach of these requirements attract a maximum penalty of $110,000 if the property hasn’t sold under the agency agreement at the time of sentencing or, if sold, the greater of $110,000 or 3 times the agent’s commission.
7. Commission entitlement clarified
The Bill clarifies that there is no commission or expenses entitlement unless there is a written, compliant agency agreement, signed and served on the client within 48 hours after signing. The Secretary may approve standard form agency agreements.
8. Expanded disciplinary powers
NSW Fair Trading/Secretary could:
- Impose monetary penalties;
- Require agents to publicise breaches of the Property and Stock Agents Act 2002 (NSW) (Act) or regulations;
- Require a person to engage the use of an independent valuer to verify the estimated selling price or revisions;
- Require LIC approval of estimated selling prices and revisions for a stated period;
- Suspend a person from exercising specific functions or;
- Require an indemnity relating to Compensation Fund claims.
9. Education notices
The Secretary could direct a licensee or registered person to undertake specified further education or training for contraventions of the Act or regulations, or a condition of their licence or certificate of registration.
10. CPD/training changes
The Secretary may approve CPD/training providers and courses, and may exempt a licence or certificate holder from CPD by written notice in some cases.
11. Commencement is split
The main underquoting reforms commence on a day to be appointed by proclamation, not automatically on assent like the other changes.
What this means for you
These reforms signal a stronger regulatory focus on pricing transparency and agent accountability.
Even though the Bill is not yet law, understanding the proposed changes now will help you:
- Assess current sales and compliance processes
- Identify potential gaps early on
- Prepare your team ahead of implementation
REINSW advocacy
REINSW has been actively representing members throughout this process.
We participated in a confidential targeted consultation, providing detailed feedback to Government and attending roundtable discussions.
Due to Cabinet-in-Confidence requirements, we are currently unable to share our submission, recommendations or positions. We have requested consent from Government to do so and it will be available in our Submissions Library once we receive consent.