New laws are being introduced in one state to crack down on dodgy real estate agents who underquote property prices to lure in unsuspecting buyers.

Under the proposed legislation, agents in NSW will be forced to publish an accurate price guide on all advertising, ensuring buyers won’t be tricked by misleading estimates.

The practice of underquoting has long been used by agents to generate more interest in homes for sale, with artificially low price guides attracting larger crowds to inspections and auctions.

Anyone caught breaking the new rules could face a hefty fine of $110,000 or three times their commission, whichever is greater.

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“We are substantially increasing the fines to take away the financial incentive for agents to engage in this misleading practice,” Minister for Better Regulation and Fair Trading Anoulack Chanthivong said.

The new legislation is expected to pass state parliament this week, marking a significant win for property buyers who have long complained about deceptive pricing practices in the real estate industry.