New underquoting requirements commence in NSW on 17 November 2026, bringing changes to how real estate agents determine estimated selling prices, select comparable sales, advertise residential properties and maintain records.
NSW Fair Trading has released practical guides, a compliance checklist and further clarification on its website.
So, what's changing?
A more structured approach to comparable sales.
Agents must follow specific search requirements when determining an estimated selling price (ESP).
For metropolitan properties, comparable sales must initially be searched within 2 kilometres over the previous six months. If fewer than three comparable properties are identified, the search period must extend to 12 months.
For non-metropolitan properties, the search covers 5 kilometres over the previous 18 months.
Agents must identify the three most comparable properties, considering factors such as location, size, condition, layout and features.
Importantly, agents must be able to explain why those properties were selected. Where fewer than three genuinely comparable sales are available, the reasons must be documented rather than selecting unsuitable properties simply to make up the numbers.
Estimated selling prices and vendor expectations
Before entering into an agency agreement, agents must provide the seller with a written estimated selling price and supporting evidence.
The ESP must be included in the agency agreement, with records retained showing how it was determined.
Sellers can instruct agents to advertise above the ESP, but the estimate itself must remain evidence-based. It cannot simply be increased to match the seller's expectations.
Agents must also review the ESP as new information becomes available during a campaign, including written offers, market feedback and recent comparable sales.
A new offer doesn't automatically mean the ESP must change. However, where the estimate is no longer reasonable, the agent must revise it, notify the seller in writing, provide supporting evidence and amend the agency agreement.
Changes to advertising requirements
From 17 November, residential property advertisements must generally include a selling price or price range.
Advertising a property simply as 'Contact agent' or 'Price on application', without a price, will generally no longer meet the requirements.
Online listings, social media and email advertising must include a price. Printed brochures must either display a price or provide a direct link, such as a QR code, to an online listing showing the price. Physical for sale signs are exempt from the requirement to display a price.
Expressions such as 'offers over', 'offers above' and price-plus symbols are also prohibited.
The advertised selling price must not be lower than the current ESP or other applicable pricing thresholds.
For example, if a property is advertised from $900,000 and the seller rejects a written offer of $925,000 solely because the amount is too low, the property can no longer be advertised from $900,000.
Importantly, the advertised price may need to increase even where the ESP itself remains reasonable and does not need changing.
Where online advertising becomes non-compliant, agents must take reasonable steps to update or remove it within one business day, including advertising managed by third parties.
Electronic agency agreements and record keeping
From 17 November, agencies must retain new agency agreements, and existing agreements amended after commencement, electronically while they remain in force and for three years after they end.
Agents must also maintain records explaining how the ESP was determined and reviewed, which comparable sales were considered, why they were selected and how relevant market feedback influenced pricing decisions.
Records of written offers must include the amount, conditions and, where rejected, the date and seller's reasons for rejection.
New Statement of Information from 8 February 2027
A further change commences on 8 February 2027, when agents must prepare a Statement of Information for residential properties they are engaged to sell.
The statement provides prospective buyers with details of comparable sales, including sale prices, dates and reasons for their selection.
It must be available through online advertising, displayed prominently at public inspections and provided within two business days when a prospective buyer requests the statement or proposed contract for sale.
Where the ESP is revised using different comparable properties, the statement must also be updated within two business days.
What about the transition period?
NSW Fair Trading has announced an education-focused approach for some new requirements during the transition period ending on 7 February 2027.
However, this is not a general grace period. The new laws apply from their respective commencement dates, and enforcement action may still be taken where appropriate.
What should agencies do now?
Agencies should review their appraisal procedures, agency agreements, advertising processes and record-keeping systems before the changes commence.
In particular, consider whether existing records demonstrate how comparable properties were selected, why pricing decisions were made and when estimates were reviewed.
Fair Trading's compliance checklist provides a useful starting point.
The key message is that an agent's professional judgement remains important, but agencies must be able to demonstrate how pricing decisions were reached and reviewed throughout the sales campaign.
Further information can be found on the NSW Fair Trading website: