Significant changes to NSW underquoting laws are expected to commence in November 2026, introducing new requirements for how residential properties are priced, advertised and marketed. 

For real estate agents, the changes go well beyond displaying a price guide on a property listing. They will affect how estimated selling prices are established, how comparable sales are assessed, how buyer offers are handled and how quickly advertising must be updated. 

A further requirement introducing a mandatory Statement of Information for residential property sales is expected to commence in February 2027. 

NSW Fair Trading has outlined the upcoming requirements and is encouraging property professionals to prepare ahead of implementation. While the exact commencement dates are still to be confirmed, agencies should already be reviewing their processes and identifying where changes may be needed. 

For sales agents, agency principals and Licensees in Charge, here's what you need to know. 

1. Residential property advertisements will need to include a price 

One of the most significant changes will be the introduction of mandatory price information in residential property advertising. 

Under the new requirements, agents will need to include an advertised selling price or price range in advertisements they arrange for residential property sales. 

This includes advertising across: 

• Real estate portals and property listing websites 

• Agency websites and mobile applications 

• Social media advertising 

• Email marketing and electronic property promotions 

The change will affect agencies that currently advertise properties using expressions such as Contact Agent or Price on Application without displaying an actual selling price. 

There is an exception for physical 'for sale' signs at the property, which will not be required to display a price. However, if a sign does include pricing information, that information must comply with the applicable rules. 

What agents should do now: Review your current listing templates, advertising packages and marketing approval processes. Identify where property prices are currently omitted and how your team will manage mandatory pricing across different channels. 

2. Advertising will need to reflect rejected offers and auction results 

The reforms will also introduce clearer obligations around keeping advertised prices consistent with information received during a sales campaign. 

Agents must not advertise or represent a selling price below: 

• The highest bid received before a property is passed in at auction, excluding vendor bids. 

• A written offer rejected by the seller solely because the amount offered was too low. 

This is particularly relevant to campaigns where buyer interest and seller expectations evolve throughout the marketing period. 

A practical example 

Imagine a residential property is advertised with a guide of $1.4 million. During the campaign, a buyer submits a written offer of $1.5 million. The vendor rejects the offer solely because they consider the price too low. 

Under the new requirements, the agency could not continue advertising or representing a selling price below that rejected offer. This means agencies will need reliable processes for communicating offers, documenting vendor decisions and reviewing advertised prices. 

How quickly must advertisements be updated? 

Where an online advertisement no longer complies with the new requirements, it must be corrected or removed within one business day. For agencies advertising across multiple platforms, this creates an important operational consideration. 

Updating a price on a major property portal may not automatically update the agency website, social media advertisements or email campaigns. 

What agents should do now: Establish who is responsible for reviewing pricing following rejected offers and passed-in auctions, and who must ensure changes are reflected across every active advertising channel. 

3. Comparable sales will become a more structured part of price estimation 

Comparable sales have always been an important part of preparing a property appraisal. However, the upcoming NSW underquoting reforms will introduce more specific requirements for the sales evidence agents must consider when establishing or revising the estimated selling price recorded in an agency agreement. 

Agents will need to consider the three most comparable property sales within prescribed geographical areas and timeframes. 

These requirements are intended to establish a more consistent approach to assessing market evidence. They also raise practical questions for agents selling properties in areas with limited comparable stock, highly specialised homes or rapidly changing market conditions. 

NSW Fair Trading has indicated that further guidance will explain how comparable properties should be selected, which factors must be considered and what agents should do when fewer than three suitable sales are available. 

What does this mean for property appraisals? 

Agencies should review how their sales teams currently identify, assess and document comparable properties. For example, is the comparable sales evidence retained in the property file? Can the agent explain why particular properties were selected? Is the estimate reviewed when new market evidence becomes available? 

The objective is not simply to collect three sales results. Agents will need to demonstrate a considered approach to establishing a reasonable estimated selling price. 

4. More detailed pricing records will be required 

Another significant aspect of the reforms is the increased emphasis on documenting how pricing decisions are made. Agents will be required to maintain detailed records supporting the establishment and revision of estimated selling prices. 

Agency agreements will also need to be retained electronically. For many agencies, this may require a review of existing CRM workflows, appraisal templates and record-keeping procedures. Consider whether your current systems provide a clear record of the information used to determine an estimated selling price and any subsequent changes made during the campaign. 

NSW Fair Trading is expected to release additional guidance outlining the specific records that must be retained. For Licensees in Charge, this is an opportunity to assess whether the agency's pricing decisions can be readily explained and supported by evidence if questioned by a regulator. 

5. A Statement of Information is expected from February 2027 

A second stage of the reforms is expected to introduce a mandatory Statement of Information for residential property sales from February 2027. Under the new requirements, agents engaged to sell residential property will need to prepare a Statement of Information using an approved form. The document will also need to be made available to prospective buyers through specified channels. 

These include: 

• Making the Statement of Information available with online advertisements, or providing a link to a webpage where it can be accessed. 

• Displaying the document at property inspections. 

• Providing a copy to prospective buyers in specified circumstances. 

NSW Fair Trading has advised that further guidance, including a draft of the approved form and information about accessing it, will be released before the requirements commence. 

For agents, the practical consideration will be how this document is prepared, approved, published and maintained throughout a sales campaign. 

6. Will the new underquoting laws apply to existing listings? 

This is an important consideration for agencies managing campaigns that extend beyond the commencement date. According to NSW Fair Trading, the new requirements will apply to agency agreements for the sale of residential property entered into after the relevant commencement date. 

However, existing agency agreements and campaigns may also become subject to the new requirements if a change is required under the new laws after commencement. This means agencies should not assume that every property listed before November will automatically be exempt. 

Sales teams will need to understand how the transitional arrangements apply to their existing campaigns once the commencement details and supporting guidance are finalised. 

7. Higher penalties and stronger enforcement powers are already in effect 

Although the new advertising and pricing requirements are still approaching, other significant changes to NSW property legislation have already commenced. From the 29th of June 2026, amendments to the Property and Stock Agents legislation introduced increased maximum penalties for a range of offences and expanded NSW Fair Trading's disciplinary powers. 

Further underquoting reforms are expected to introduce a maximum court-imposed penalty of $110,000 or three times the agent's commission, whichever is higher, once the relevant provisions commence. 

These are maximum penalties, not automatic fines for every breach. The increased regulatory focus is also evident in recent compliance activity. In September 2026, NSW Fair Trading reported that its inspectors had attended almost 80 open homes while posing as prospective buyers, resulting in $20,900 in fines, five warnings and 16 education directives. 

Inspectors subsequently reviewed agency records, vendor feedback and advertising material to assess whether information provided to buyers was accurate and consistent. 

The message for agencies is increasingly clear: compliance extends beyond what appears in an advertisement. The conversations, records and decisions behind a sales campaign matter too. 

8. What should NSW real estate agencies be doing now? 

With the changes approaching, there are several practical steps agencies can take before the new requirements commence. 

Review appraisal procedures. Check how agents select comparable properties, establish estimated selling prices and document their reasoning. 

Audit advertising templates. Identify where properties are advertised without a price and ensure your systems can accommodate the new requirements across portals, websites, social media and email. 

Establish a price-update process. Determine how rejected written offers, auction results and changes in market evidence will trigger a pricing review. Assign responsibility for updating advertisements within the required timeframe. 

Review record-keeping systems. Consider whether appraisal evidence, vendor instructions, pricing changes and agency agreements are being stored consistently and can be retrieved when required. 

Prepare for the Statement of Information. Begin considering how the document will be incorporated into listing workflows, inspections and online advertising once the approved form becomes available. 

Brief the entire sales team. Ensure sales agents, sales associates, marketing coordinators and administrative staff understand how the changes may affect their responsibilities. 

For Licensees in Charge, this is also an opportunity to review supervision procedures and confirm that responsibilities are clearly assigned. 

9. Another reason to complete your NSW CPD sooner rather than later 

With significant changes to NSW property legislation already underway and further underquoting reforms expected in November, there is a compelling reason for agents to complete their 2026–27 NSW CPD now rather than waiting until the June deadline. After all, these changes will affect how you work long before your CPD is due. 

The 2026–27 NSW CPD program covers important areas of professional practice, including auction laws, contracts, Rules of Conduct, Supervision Guidelines and AML/CTF obligations. 

At Under The Hammer, our 2026–27 NSW CPD courses incorporate relevant legislative and regulatory changes, with an in-depth focus on what they mean for real estate professionals in practice. 

Our experienced trainers go beyond simply explaining the legislation. They explore how regulatory changes affect everyday agency activities, from pricing and advertising to record-keeping, supervision and professional responsibilities. 

Completing your CPD earlier means you can develop a stronger understanding of your obligations and apply that knowledge as changes take effect, rather than playing catch-up months later. 

While CPD does not replace the need to stay informed about new legislation and regulator guidance as it is released, it provides an important opportunity to strengthen your understanding of the rules that govern your work. 

The CPD deadline might be June, but the changes are happening now. 

Under The Hammer delivers 2026–27 NSW CPD through interactive face-to-face and Zoom sessions, led by experienced property industry trainers. 

The bottom line for NSW agents 

The upcoming underquoting reforms represent a substantial change to the way residential property sales campaigns are managed in NSW. 

Mandatory advertised prices, more structured comparable sales requirements, tighter advertising update deadlines and additional record-keeping obligations will all require agencies to examine their existing practices. 

The Statement of Information, expected in February 2027, will add another important step to the residential sales process. 

For agents and Licensees in Charge, the best preparation is to review current procedures, identify potential gaps and make sure staff understand their responsibilities before the changes take effect. 

With further reforms approaching, agencies should also be prioritising relevant professional development now, rather than waiting until the new requirements are already in force. 

The rules are changing. The time to prepare is now. 

Sources and further reading 

• NSW Fair Trading: Changes to property and stock agents laws 

• NSW Fair Trading: Underquoting guidance for property professionals 

• NSW Fair Trading: Open homes on notice in latest underquoting blitz 

This article is based on NSW Fair Trading's announced implementation plans and is intended as general industry information. The November 2026 and February 2027 commencement dates are expected dates and remain subject to confirmation. Further regulatory guidance may clarify how the new requirements operate in practice. Agencies should refer to NSW Fair Trading for the latest information and seek professional advice where required.