NSW Fair Trading has taken its latest underquoting compliance operation directly to the front line of residential sales, with inspectors posing as prospective buyers at open homes across the state. 

On the 4th of September 2026, the NSW Government revealed that Fair Trading's Strata and Property Taskforce had attended almost 80 open home inspections over the previous two months as part of a covert compliance operation targeting underquoting and other breaches of property sales laws. 

The operation resulted in 10 agents receiving fines totalling $20,900, alongside five warnings and 16 education directives. 

For NSW sales agents, however, one of the most useful parts of the announcement is how the inspections were conducted. Fair Trading officers didn't simply review advertisements from behind a desk. Inspectors attended open homes as prospective buyers and then compared the information they were given with agency sales records, vendor feedback and advertising material. 

With the spring selling season underway, it is a timely reminder that underquoting compliance isn't limited to the price displayed on a property portal. What agents say to buyers, what they record and what their agency's documentation shows all need to align. 

What did Fair Trading find? 

According to the NSW Government, the operation identified alleged breaches relating to underquoting, consumer protection and record keeping. 

In one case, an agent told prospective buyers that a property was expected to sell for $3.65 million. When Fair Trading reviewed the agency's records, however, the estimated selling price was recorded as between $4 million and $4.4 million, while the online advertising used a $4 million search price. 

Another agent received a warning after purchaser feedback recorded and reported by the agency was found not to accurately reflect the conversations that had taken place during an open home. 

That second example is particularly important because it demonstrates that Fair Trading's focus extends beyond the advertised price. The information agents provide verbally, the buyer feedback they record and the information subsequently communicated to vendors can all form part of the compliance picture. 

What you say at an open home matters 

Under NSW's current underquoting requirements, an agent must not provide a selling price, whether in writing or verbally, that is lower than the estimated selling price recorded in the agency agreement. 

That applies to conversations with prospective buyers as well as formal advertising. 

Fair Trading's current guidance also requires agents to make a written record when they make a statement about the likely selling price of a residential property while marketing it. That record must include the property address, the price or price range stated, and the date and time the statement was made. 

This means a casual conversation at an open home isn't necessarily casual from a compliance perspective. 

Questions such as "What do you think they'll take?", "Where do you see this selling?" or "Is the vendor realistic?" are part of everyday conversations between buyers and agents. If the response includes a representation about the property's likely selling price, agents need to ensure what they say is consistent with the agency's current estimated selling price and that the appropriate record is made. 

Buyer feedback needs to be accurate too 

The operation also puts an interesting spotlight on purchaser feedback. 

Buyer feedback is an important part of a sales campaign. It helps agents advise vendors, assess market response and determine whether the estimated selling price remains reasonable as the campaign progresses. 

But that also makes the quality of those records important. 

Fair Trading's underquoting guidance identifies feedback from potential purchasers as one of the factors that may be considered when determining a reasonable estimated selling price. Agents are also expected to keep appropriate evidence supporting their estimate and update it when it is no longer reasonable. 

If the feedback recorded in the agency's system doesn't accurately reflect what buyers are saying, it can create problems well beyond the quality of a vendor report. 

The latest operation shows that Fair Trading may compare those records with what actually occurred during an inspection. 

Your price guide isn't something you set and forget 

One of the continuing obligations that can sometimes become lost during a busy campaign is the requirement to keep the estimated selling price under review. 

The price in the agency agreement must be a reasonable estimate of the property's likely selling price. If information obtained during the campaign means that estimate is no longer reasonable, it needs to be revised, supported by evidence and communicated appropriately. 

That evidence can include comparable sales, buyer feedback, relevant valuations, the characteristics of the property, market conditions and other factors affecting the likely selling price. 

This is particularly relevant during spring, when buyer activity can move quickly and competition for individual properties can change throughout a campaign. 

A final sale price exceeding the original estimate does not, by itself, establish that underquoting has occurred. Fair Trading's guidance recognises that competition between buyers and other factors can result in a property selling above what could reasonably have been predicted. 

What matters is whether the estimate was reasonable based on the information available at the time, whether it remained reasonable as the campaign progressed and whether the agency can demonstrate how it arrived at that position. 

Stronger penalties are already in force, with further underquoting reforms to come 

The compliance operation comes at a time of significant change to NSW property and stock agent laws. 

Following the commencement of the first stage of the Property and Stock Agents Amendment (Underquoting and Other Agent Conduct) Act 2026 on the 29th of June 2026, increased maximum court-imposed penalties now apply to a range of offences. 

For some offences, including mishandling trust money, dummy bidding and acting as an agent without a licence, maximum court-imposed penalties can now reach $110,000 for corporations and $55,000 for individuals. 

Fair Trading's disciplinary powers have also been strengthened. These include the ability to direct an agent or assistant agent to undertake specified further training or education in certain circumstances. Fair Trading must also consider previous offences and other non-compliance when determining what disciplinary action to impose. 

A second stage of reforms specifically affecting underquoting and property price transparency is expected to commence later in 2026. 

These changes include new requirements around how comparable sales are considered when determining and revising estimated selling prices, additional record keeping, mandatory Statements of Information for residential properties and new requirements around advertised selling prices. 

Once those provisions commence, the maximum court-imposed penalty for underquoting will increase to $110,000 or three times the agent's commission, whichever is higher. 

The exact commencement date for these further reforms has not yet been announced. Agents therefore need to remain across both the requirements that apply now and the additional changes ahead. 

Fair Trading's presence in the industry is increasingly visible 

The open home blitz isn't an isolated compliance exercise. 

The NSW Government has invested $8.4 million in the Strata and Property Taskforce, bringing together specialist inspectors, investigators and dispute resolution experts to address misconduct and improve professional standards across the property sector. 

The latest operation also coincides with the first six months of Fair Trading's Name and Shame Register, which provides a publicly accessible record of disciplinary and enforcement action involving real estate agents, strata managers and agencies. According to the NSW Government, the register had received 118,000 visits by the time the open home operation was announced. 

Importantly, Fair Trading continues to stress that the overwhelming majority of property professionals do the right thing. 

For compliant agencies, these operations help reinforce a level playing field. They also provide a useful indication of the areas Fair Trading is looking at and the evidence agents may be expected to produce. 

What should sales teams be checking? 

For agency leaders, this is a good opportunity to make sure the whole sales team understands the current underquoting requirements, rather than assuming compliance sits solely with the Licensee in Charge. 

Agents conducting open homes should know the property's current estimated selling price and understand what they can and can't say when buyers ask about price. Buyer feedback should be recorded accurately, representations about likely selling prices should be documented where required, and the estimated selling price should be reviewed throughout the campaign as new information becomes available. 

There should also be consistency between the agency agreement, advertising, internal records, vendor communication and what buyers are being told. 

The practical test is relatively simple: if a Fair Trading inspector attended one of your open homes as a prospective buyer and subsequently reviewed the property file, would the story told by those records match the conversation they had with your agent? 

The latest operation shows that this is no longer a hypothetical scenario. 

This year's CPD is particularly relevant 

With Fair Trading actively testing compliance in the field and further underquoting reforms expected later this year, staying across legislative and regulatory change is particularly important for NSW sales agents. 

CPD shouldn't simply be about completing the required hours. Its value is in helping agents understand how regulatory requirements translate into the decisions and conversations they have every day. 

Under The Hammer's 2026–27 NSW CPD training incorporates current legislative and regulatory developments affecting NSW property professionals, with trainer-led sessions focused on understanding how those obligations apply in practice. 

For sales agents, that means being confident about the rules that apply now while also staying informed about the next stage of the underquoting reforms. 

Fair Trading officers could attend an open home without the agent knowing it. The best preparation isn't to behave differently when an inspector is present. It's to make sure the right processes are being followed at every inspection. 

References 

NSW Government, Open homes on notice in latest underquoting blitz, published on the 4th of September 2026. 
Details Fair Trading's covert open home compliance operation, including the inspection methodology and enforcement outcomes. 
Read the NSW Government announcement 

NSW Fair Trading, Underquoting guidance for property professionals. 
Current guidance covering estimated selling prices, representations to prospective buyers, record keeping and revisions to estimated selling prices. 
Read the NSW Fair Trading underquoting guidance 

NSW Fair Trading, Changes to property and stock agents laws, published on the 8th of July 2026. 
Details the first stage of reforms that commenced on the 29th of June 2026 and the further underquoting and property price transparency reforms expected later in 2026. 
Read the NSW Fair Trading legislative update 

NSW Government, Price estimation and underquoting when selling a property. 
Guidance on reasonable estimated selling prices, evidence used to support an estimate and circumstances that may require an estimate to be revised. 
Read the NSW Government underquoting information 

This article provides general information only and does not constitute legal advice. Property professionals should refer to current NSW Fair Trading requirements and obtain professional advice relevant to their circumstances where required.