Two Sydney real estate agencies are under investigation following consumer complaints they misrepresented property prices, with more prosecutions expected when new laws are passed in January.

In addition to a matter “currently before the court” there are two other traders currently being investigated for alleged underquoting, NSW Fair Trading confirmed.

The matter, involving two inner-city properties marketed by BresicWhitney agents, is believed to be the first case of its kind under the Property, Stock and Business Agents Act 2002.

Court summons were provided to BresicWhitney in March, with the matter adjourned until April 2016.

The latest two investigations came to the consumer watchdog’s attention following complaints from the public. One of the agencies is located in the Sutherland Shire, the other is in the inner west.

“NSW Fair Trading employs a range of strategies including education and proactive inspection programs to ensure compliance,” a spokeswoman said.

Under existing laws it can be difficult to determine whether underquoting has taken place, but reforms to be introduced from January 1 will make it far easier for to track compliance, guidelines about the reforms explain.

“Until the new laws come into effect, an agent can only be found guilty of underquoting when evidence is shown that they had deliberately or recklessly provided a misleading selling price estimate – placing the ‘burden of proof’ on the regulator making the case against the agent,” the guideline says.

The reforms address this “by creating a strict liability offence” and requiring meticulous record-keeping from real estate agents.

This includes updating marketing material with new selling estimates as soon as feasible and maintaining detailed documentation of any conversations with consumers about the price estimate.

These details are made available to Fair Trading should they investigate, providing an opportunity for the regulator to quickly identify any illegal activity.

Those that do not comply with the reforms face stiff penalties, including fines of up to $22,000 and forfeiting commissions and fees.

In response to the new laws, the Real Estate Institute of NSW organised 12 industry sessions across the state from December 2015 to March 2016 to train agents about the new requirements. The REINSW was involved in drafting the new laws.

REINSW chief executive Tim McKibbin was confident those who attended the sessions would have an understanding of their obligations by January 1.

“Those who elect not to train concern me,” Mr McKibbin said. There are more than 50,000 property, stock and business agent licence holders or real estate certificate holders in NSW.

Yet he said the problem of underquoting is “far smaller than some believe it to be”.

“We see allegations of underquoting skyrocket during a rising market and all but disappear in a flat or declining market,” he said.

“Because in a rising market a lot of people mistake a higher price being achieved for the property than anyone had contemplated as underquoting. It’s not, it’s just a great result for the vendor,” he said.

Underquoting or “bait pricing”, where an agent markets a property for less than the feasible sale price to attract interest, was a hot button issue in the busiest years of the Sydney property boom.

Data from an October 2015 survey indicates 46 per cent of real estate agents sold properties at auction for more than 10 per cent of the quoted price, said Josh Rowe, chief executive at property price prediction site RealAs.

This included 26 per cent of agents quoting prices 15 per cent lower than the sold price and 9 per cent of agents quoting prices 20 per cent below the final sold price.

“Inaccurate quoting is not rare, it happens almost every second auction in NSW,” Mr Rowe said.

Fair Trading confirmed they would commence another comprehensive inspection program in 2016 to ensure compliance with the new legislation.

“Any real estate agent found in breach may be prosecuted and placed before the local court in addition to having disciplinary action taken against their real estate licence,” a spokeswoman said.