"NSW Fair Trading Fails Consumers: Serious Misconduct Ignored, Compliance Lax Amid Underwhelming Enforcement"

In a startling revelation, NSW Fair Trading, the agency entrusted with protecting consumers in New South Wales, has come under fire for failing to regulate and monitor the conduct of real estate agents effectively. Despite numerous reports of serious misconduct, including unlicensed agents, licence renting, underquoting, and unauthorised financial advice, the outcomes of investigations remain unclear, leaving consumers in the dark and vulnerable.

?A Broken System

Concerned consumers and industry insiders have provided NSW Fair Trading with clear evidence of misconduct for months. Yet, instead of taking decisive action, the agency has frequently directed complainants to fill out standard complaint forms, avoiding any meaningful investigation or leadership in addressing these critical issues. This negligence has left many consumers emotionally and financially devastated as they continue to suffer the consequences of unscrupulous agents.

Grossly Understaffed Compliance

One of the most glaring issues is the stark need for more NSW Fair Trading compliance unit staffing. With only ten inspectors overseeing the compliance of approximately 60,000 real estate agents across NSW, the agency must ramp up its staffing numbers. This shortage of compliance officers has led to a lax enforcement environment where agents can operate with little fear of significant repercussions.

?In stark contrast, Queensland (QLD) offers a more robust compliance framework. In the Cairns regional area alone, three inspectors are responsible for monitoring the compliance of around 133 agencies. Agents in this area report that Fair Trading QLD conducts routine compliance inspections three to four times yearly. This regular oversight is a far cry from the situation in NSW, where inspections are almost nonexistent.

In 29 years in the NSW real estate industry, I have witnessed just one inspection, which was only triggered when a parent company voluntarily entered administration. This comparison highlights the dire state of regulatory oversight in NSW.

A Tale of Two States

The contrast between NSW and Victoria's approach to real estate compliance is equally striking. While NSW issued an average fine of just $3,000 per agent for underquoting, the Victorian Government has taken a far more aggressive stance. Backed by a $3.8 million investment into a task force dedicated to enforcing underquoting laws, Victoria has issued fines totalling $1 million to 47 agents over 15 months, averaging $21,000 per agent. This stark difference underscores the NSW Government's failure to take similar proactive measures to protect its consumers.? The under-quoting complaints in Victoria are 15% less than in NSW.

Misleading Compliance Information

Adding to the concerns is the misleading information provided on the NSW Fair Trading website, where consumers can check the licence status of property agents. The website inaccurately represents every agent as "compliant," even when there is documented evidence of disciplinary actions or warnings against them. Senior officials have been made aware of this misleading practice, but no corrective action has been taken, further eroding trust in the agency. https://verify.licence.nsw.gov.au/home/Property

?As NSW consumers continue to face significant risks due to the shortcomings of NSW Fair Trading, there is an urgent need for reform. Millions of dollars have been spent on employing commissioners across various sectors of the real estate space. Still, these resources would be better utilised by bolstering the compliance unit with more inspectors. The current system is failing, and until decisive action is taken, NSW consumers will remain at the mercy of a defective regulatory body. This is just one of many stories we will continue to uncover about the systemic failures within NSW Fair Trading as we advocate for greater accountability and protection for the people of New South Wales.

#realestatecompliance #fairtradingnsw #nswgovernment #compliance #realestate #sydney #nsw #auspol Chris Minns George Rousos NSW Fair Trading