Homeowners could be slapped with heavy fines if they underquote their property’s expected selling price in a shake-up of real estate law.

Unsuccessful homebuyers who are tricked will be able to seek pre-purchase costs back from greedy vendors and real estate agents under the changes.

Fairfax and News Ltd newspapers say Australian Competition and Consumer Commission boss Graeme Samuel has warned cheats they will be vigorously pursued under new laws that come into effect next January.

“If a vendor is complicit with this conduct, they will be fined too,” Mr Samuel was quoted as saying.

“That $220,000 (fine) is a large chunk out of the sale price of your house.

“So clean up your act now because, if you do not, the ACCC and state bodies will come down on you.”

About 45 agents have received written warnings about underquoting since 2004.

The changes will come about following the passage of the Trade Practices Amendment (Australian Consumer Law) Bill 2009 through federal parliament. It has already passed the lower house and is expected to pass the Senate when parliament resumes in August.

AAP