NSW real estate reforms are underway and will change how property is bought and sold across the state. Recently, I met with Government to discuss the draft Bill proposing amendments to the Property and Stock Agents Act 2002 (NSW) and the Fair Trading Act 1987 (NSW), ahead of lodging my formal written submission.
Because the consultation process is confidential, I cannot share every detail that was discussed. However, the overall direction is clear. These NSW real estate reforms are designed to deliver stronger consumer protection, tougher penalties and more visible consequences for unlawful or unethical behaviour in the property sector.
For buyers and sellers, this is a positive step towards a fairer property market. For some parts of the industry, it will require a major shift in how business is done.
Why NSW real estate reforms are happening
For years, sales agents and unlicensed operators have treated penalties as a cost of doing business. Underquoting, vague price guides, poor documentation and doctored agency agreements have left too many buyers and sellers exposed.
As complaints, media investigations and regulator reports have increased, pressure has grown for more effective tools. The proposed NSW real estate reforms respond to that pressure by:
- Increasing the fines for non compliance
- Making it easier and faster for the regulator to act
- Raising the minimum standard of professionalism expected across the industry
The aim is simple. The Government wants a more transparent real estate process where consumers can make decisions based on clearer, more reliable information.
Key changes being discussed
The Bill remains in draft form and is still subject to consultation. Even so, several core themes have emerged from the NSW real estate reforms.
1. Tougher underquoting reforms and real penalties
Underquoting has been a long running problem in NSW. Many buyers have spent time and money pursuing properties that were never truly within the agent’s quoted price range. They’ve spent hours online searching for properties without realising the agent has manipulated the back end of major portals so the property appears in a lower price bracket. The emotional toll on buyers is taxing.
The proposed NSW real estate reforms are looking at more direct enforcement tools for underquoting. These include substantial penalties that can be issued as penalty notices, without lengthy court processes. In practical terms, deliberate underquoting would become far more expensive and far less attractive as a sales tactic.
2. Greater public disclosure requirements for offenders
Another major theme is transparency. At present, some enforcement outcomes are not widely known by consumers when they choose an agent.
The reforms are considering expanded public disclosure requirements to make breaches easier to identify and understand. As a result, buyers and sellers would be better able to see who has been penalised and make more informed decisions about whom they appoint.
3. Changes to agency agreements
Agency agreements are the legal foundation of the relationship between an agent and a seller. Despite this, they are often easily manipulated by estimates of selling prices and the agent’s opinion. One of the loopholes that lets agents get away with it, or just a slap on the wrist with a $2,500 penalty.
Under the proposed NSW real estate reforms, there is a focus on tightening how agency agreements are structured, what must be disclosed and how clearly key terms are presented. The goal is to ensure that consumers know what they are signing, what they will be charged and what authority they are granting their agent.
4. Evidence to support estimated selling prices
One of the most critical aspects of these reforms concerns how price guides are set and the evidence required. In too many cases, price estimates are treated as bait for property buyers. There will be stricter requirements for record keeping of estimated selling prices.
The NSW real estate reforms contemplate stronger requirements for agents to hold clear evidence to support their estimated selling prices. In addition, there may be more explicit disclosure around how those figures were determined. This would make it easier for regulators to assess whether a quoted range is reasonable.
5. Stronger rules for CPD providers
Continuing Professional Development (CPD) is supposed to lift standards across the industry. In practice, the quality of training can vary widely. Some operators go around the room to create an interactive environment for answering questions. Still, this approach is outdated and focused on box-ticking rather than on building fundamental skills and ethical awareness. Technically speaking, the training organisation is not assessing agents’ competence.
The proposed changes include tighter requirements for CPD providers and penalties for non-compliant training. That would help ensure that the education agents receive is practical, accurate and aligned with current law and best practice.
6. More power for the Commissioner
Finally, the NSW real estate reforms are expected to expand the decision making and enforcement powers available to the Commissioner of Fair Trading.
Stronger investigative tools and clearer pathways to act mean persistent offenders and breaches can be addressed appropriately. In turn, this should reduce ongoing consumer harm and send clearer signals to the industry about what benefits consumers and what doesn’t.
What these NSW real estate reforms mean for buyers
If you are a buyer, the NSW real estate reforms are designed to reduce guesswork and improve transparency. In practical terms, you can expect:
- Price guides that are more closely aligned with market evidence
- More precise details on the pricing rules that agents can and cannot use.
- Better visibility over which agents have faced serious enforcement action
- A regulator with more power to issue a penalty notice that will hit the agent’s pocket if they continue to harm consumers.
These reforms will not eliminate all risks in a property purchase. Property decisions still involve finance, due diligence and a clear plan. However, they should reduce the number of surprises caused by misleading price ranges, poor disclosure or agents who treat the rules as optional.
What these reforms mean for sellers
If you are selling, the NSW real estate reforms can also work in your favour. When the rules are clearer and more consistently enforced, expectations are easier to manage and compare.
Sellers should see:
- More transparent discussions about realistic selling prices and evidence
- Agency agreements that the regulator develops to ensure transparency and mitigate risk
- Better guidance on disclosure obligations and compliance risks
Sellers who want to do the right thing will be less exposed to the fallout from an agent’s non-compliance. As enforcement and public disclosure become more visible, it should become easier to identify reputable agents who treat compliance as part of their service, not an afterthought.
How agents and agencies should respond
For agents and agencies, the message from the NSW real estate reforms is straightforward: lift your standards now or risk being left behind.
Practical steps include:
- Reviewing how price guides are set, justified and documented
- Ensuring every agency agreement is executed correctly
- Keeping clear records to support advice, recommendations and representations
- Choosing CPD that builds real skill and understanding, not just a chore that agents do every year.
Agencies already operating to a high standard will find that these reforms validate their approach and help them stand out. Those relying on aggressive tactics, weak documentation and minimal training will face growing pressure as the new framework takes shape.
How to protect yourself now as a consumer
While the NSW real estate reforms are still in progress, there are sensible steps you can take today:
- Ask agents how they arrived at their price guide and what evidence supports it
- Read agency agreements carefully and ask that the agent not manipulate the estimated selling price.
- Check an agent’s track record and reputation, not just how good they tell you they are.
- If you have been treated poorly by an agent, you can contact Fair Trading NSW and file a complaint.
Taking these actions now will help you navigate the current environment and leave you better prepared when the new regulatory framework is in place.
Final thoughts on NSW real estate reforms
The NSW real estate reforms are not about punishing the industry. Instead, they are about ensuring agents are far more transparent and work for the people who matter most: buyers and sellers.
By increasing penalties, improving transparency and strengthening enforcement, the proposed changes aim to narrow the space in which harmful behaviour can occur. Honest, professional agents should welcome that shift. Consumers certainly will.
As the draft Bill progresses through consultation, it will be important for everyone involved in property transactions to stay informed. Understanding these NSW real estate reforms now will help you make better decisions and protect yourself in a changing property landscape.
Questions and Answers about
Paul Mulligan is the Principal Buyers Agent & Expert Negotiator at MULLIGAN Buyers Agents, Sydney. One of only two buyer’s agents in Australia to complete Negotiation Mastery at Harvard Business School, Paul combines advanced negotiation skills with over 30 years of market expertise to achieve outstanding results for property buyers. Passionate about helping clients avoid costly mistakes, he provides expert guidance throughout the buying process from search to settlement.
