On 1 January 2016, new underquoting laws in the NSW residential property market began. The agency agreements for the sale of residential property guide has been updated. <Download it here>
Agents who provide old copies of the guide to vendors, must include the following addendum:
An agent must include their estimated selling price for the property in the agency agreement. The law allows this price to be a single price or a price range, as long as the highest price in the range does not exceed the lowest price by more than 10%.
An agent is required to revise their estimated selling price if it no longer remains a reasonable estimate of the likely selling price of the property. The agent must then notify you in writing of that revision and amend the agency agreement. The agent does not require your consent to amend the agreement for this purpose. The agent must provide you with evidence of the reasonableness of their estimated selling prices.
The NSW Fair Trading website contains more information about the estimated selling price and what an agent must do when advertising or making a statement about the likely selling price of your property to potential purchasers.