By Gorkem Oksuz and Brad Marland
NSW has introduced significant reforms to the laws regulating real estate agents, with a strong focus on underquoting, price transparency and agent conduct.
The Property and Stock Agents Amendment (Underquoting and Other Agent Conduct) Act 2026 (NSW) commenced in part on 29 June 2026, with further underquoting reforms expected to commence later in 2026.
Here are the key changes agents, vendors and buyers should know.
What Has Already Changed?
From 29 June 2026, penalties increased for a range of breaches under the Property and Stock Agents Act 2002 (NSW).
For some serious offences, maximum penalties can now reach:
- $55,000 for individuals; and
- $110,000 for corporations.
NSW Fair Trading has also been given broader disciplinary powers, including the ability to require further training, independent property valuations and additional supervision of an agency’s pricing practices.
Agents who fail to comply with continuing professional development requirements may also face penalties of up to $11,000.
Major Underquoting Changes Are Coming
Further reforms are expected to commence towards the end of 2026.
Mandatory Price Guides
Residential property advertisements will generally need to include a selling price or price range.
This will apply to online listings, agency websites, social media and other electronic advertising.
New Statement of Information
Agents will be required to prepare a Statement of Information explaining how the property’s estimated selling price was determined.
It is expected to include information such as comparable property sales and will need to be made available to prospective buyers.
Stronger Evidence for Price Estimates
Agents will need to be able to demonstrate that their estimated selling price is reasonable and supported by relevant evidence, including comparable sales.
If circumstances change during the campaign, the estimate may need to be revised.
Rejected Offers Could Change the Price Guide
One of the most important changes relates to written offers.
If a vendor rejects a written offer solely because the amount is too low, the agent will generally not be able to continue advertising the property below that amount.
Example
A property is advertised at $1.5 million.
A buyer makes a written offer of $1.6 million, which the vendor rejects because they want a higher price.
The agent generally cannot continue marketing the property at $1.5 million.
This means agents should carefully record both offers and the vendor’s reasons for rejecting them.
What Happens if a Property Is Passed In?
Where a property is passed in at auction, the agent will generally not be able to subsequently market the property below the highest bid made by a registered bidder.
This prevents a property from returning to the market with a price guide below what buyers have already demonstrated they are willing to pay.
Online Advertising Must Be Updated Quickly
Where the estimated selling price changes, a relevant offer is rejected or an auction result affects the permissible advertised price, online advertisements will generally need to be updated within one business day.
Agencies will need clear internal processes to ensure pricing information is communicated and updated promptly.
Much Higher Underquoting Penalties
Once the new penalty provisions commence, underquoting may attract a maximum court-imposed penalty equal to the greater of:
- $110,000; or
- three times the agent’s commission.
This represents a significant increase from the current regime.
What Should Agents Do Now?
Real estate agencies should begin preparing by:
- reviewing their underquoting and advertising procedures;
- maintaining clear evidence supporting estimated selling prices;
- properly recording written offers and vendor instructions;
- ensuring auction results are accurately documented;
- reviewing how quickly online advertisements can be updated; and
- training sales and marketing staff on the new requirements.
The reforms make one thing clear: agents will increasingly need to be able to justify and document the prices they communicate to the market.
How Madison Marcus Can Help
Madison Marcus can assist real estate agents, agencies, vendors and property businesses with understanding and preparing for the new requirements.
Our Property and Commercial teams can assist with agency agreements, underquoting compliance, advertising requirements, NSW Fair Trading matters and property-related disputes.
Contact Madison Marcus today if you would like advice on how the new property and stock agent laws may affect your business or property transaction.
This article is general information only and does not constitute legal advice.
Brad Marland: Partner, Real Estate & Development
Brad Marland is a Partner in Madison Marcus’ Real Estate & Development Division, with nearly 25 years of experience across the Australian property sector. He advises major public companies, developers, landlords, tenants, local governments and authorities on complex property transactions, leasing, acquisitions and disposals, joint ventures and licensing. Brad is known for his practical, no-nonsense approach and delivering fast, reliable and commercially focused advice.
