Can Real Estate Agents Lie?
If you've typed this question into Google, chances are something didn't sit right during a property inspection, a negotiation or a conversation with an agent who seemed a little too smooth. You're not alone. It's one of the most searched questions in Australian real estate, and for good reason.
The short answer is: no, real estate agents cannot legally lie to you. But the reality is more complicated than a simple yes or no. There's a wide grey area between illegal misrepresentation and legal sales spin, and most people can't tell where one ends and the other begins. That grey area is exactly where sellers and buyers get caught out.
This guide breaks down what agents are and aren't allowed to say, the tactics that catch people off guard and how having someone independent in your corner (someone who isn't employed by the agent) changes the entire dynamic.
The Legal Answer: What Agents Cannot Do
In NSW, real estate agents are bound by both the Australian Consumer Law (ACL) and the Property and Stock Agents Act 2002 (NSW). Under these laws, agents are prohibited from:
Misleading or deceptive conduct, such as making false statements about a property, its condition, comparable sales or offers received
Underquoting, meaning advertising a price range they know is below what they expect the property to sell for, a practice specifically targeted by NSW Fair Trading's underquoting reforms
Misrepresenting interest levels, such as falsely claiming there are other offers or other buyers to create urgency or pressure
Failing to disclose material facts, such as known structural issues, disputes or defects that would affect a buyer's decision
Breaching these rules can result in significant fines and, in serious or repeated cases, loss of licence. On paper, the protections are strong.
The Grey Area: "Puffery" vs. Misrepresentation
Here's where it gets murkier. The law draws a distinction between an outright lie and "puffery," which is exaggerated, subjective sales language that a reasonable person wouldn't take as literal fact.
Saying a home has "breathtaking views" or is in a "highly sought-after pocket" is puffery. It's opinion and it's legal. Saying "we've had three offers above asking" when no such offers exist is misrepresentation and it's not legal at all.
The problem is that most sellers and buyers are hearing this language for the first, and possibly only, time in years. Agents run these conversations dozens of times a month. That imbalance in experience is where trust gets exploited, even when nothing technically illegal has occurred.
Common Tactics That Sit in This Grey Area
Some of the most common complaints people raise about agents fall into tactics that are legal but designed to create pressure:
"There's another buyer very interested," which is sometimes true and sometimes a negotiation tool
Conditioning sellers on price expectations early to secure the listing, then "adjusting expectations" once the campaign is underway
Dummy bidding at auction, which is illegal in NSW but historically difficult to prove and still reported
Vague answers about building issues or disputes rather than outright denial, to stay technically compliant
Playing both sides, since an agent's legal and financial duty is to get the best outcome for their vendor client, which will put a buyer's interests second, even while appearing helpful
None of this means agents are acting in bad faith. Most are simply doing their job, which is to get the best result for whoever is paying them. For a seller, that's usually the vendor. For a buyer working directly with a listing agent, that means no one in the room is working for you.
Why This Matters More for Sellers Than You'd Think
Most people assume the risk of being misled sits with buyers. In practice, sellers are just as exposed, often more so, because they only sell a handful of times in their life, while agents run this process constantly.
Sellers can be misled about:
What their property is realistically worth
How much marketing spend is actually needed
What commission rate is competitive versus inflated
How the campaign is actually performing, versus how it's being reported
Whether the agent recommended is the best fit for the property and area or simply the one paying for the referral
This is the exact gap that independent vendor advocacy was built to close.
How Vendor Advocacy Removes the Guesswork
At Ralph & Ralph, as vendor advocates, we work exclusively for the seller, never for the selling agent, and never for a buyers’ agent's commission. Our job is to sit alongside you through the entire process and make sure the agent representing your property is accountable, transparent, and genuinely the best fit for your home.
That includes:
Independently assessing and recommending agents based on track record and fit for your specific property and area, not referral arrangements (see how our pricing works)
Reviewing and negotiating commission and marketing costs before you sign anything
Monitoring the campaign so you have a second, informed opinion on offers, feedback and pricing conversations
Flagging misleading or pressure tactics the moment they appear, because we know what to listen for
This isn't guesswork on our end. Ralph & Ralph is run by Andrew Schaverien, a former Australian Army Officer and NSW Police Force employee who also holds a Class 1 Real Estate Licence in NSW. Andrew has sat on the industry side of these conversations and knows exactly how campaigns, commissions and negotiations are meant to work, and where they quietly go wrong.
The name itself carries that same standard of integrity forward. Ralph & Ralph honours the original agency founded in the late 1940s by Andrew's grandfather Ralph Schaverien and great-uncle Ralph Silverstone, two WWII veterans who built their reputation on straight dealing. As a veteran-owned business today, that same principle is the whole point of the service.
And If You're Buying, Too
The same imbalance applies in reverse. If you're purchasing a property, the listing agent's legal duty is to the seller, not to you, no matter how helpful they seem. Our Buyer Advocacy service, when you are thinking of using a buyers’ agent, puts someone in your corner who is working only for you, not for the best outcome for the other side.
The Bottom Line
Real estate agents can't legally lie to you, but the space between an outright lie and a carefully worded half-truth is wide, and it's where most sellers and buyers get caught out. The best protection isn't learning to spot every tactic yourself. It's having someone independent in the room who already knows them.
Ralph & Ralph's Vendor Advocacy service is free to sellers. Our fee comes out of the selling agent's commission, not your pocket. There's no cost to finding out whether the agent you're considering, is the right fit. Our Buyer Advocacy service is free for buyers looking to use a buyers’ agent and gives the same level of surety and protection, also at no cost.
Selling in Sydney? Get an independent, no-cost second opinion before you sign with an agent.