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The New South Wales Government is urging people to do their research before entering into the property market.
The warning comes after an Australian government survey revealed that many buyers, sellers and renters overestimate how much they know about property processes.
NSW Minister for Fair Trading, Diane Beamer, says people who are overconfident about their knowledge are at risk of making costly mistakes.
"Certainly people can lose money, they can lose deposits," she said.
"They mightn't be aware of their rights.
"For example: one-in-four tenants did not know that it was advisable to put their requests for repairs to an agent or a landlord in writing, and they could be missing out on some of their rights as a tenant."
The State Government survey also found only one-in-10 property owners do any research before selling, and only a third of homebuyers know they have a five-day cooling off period after purchase.
Ms Beamer says a high number of tenancy disputes arise because people are not aware of their rights and responsibilities.
"We handle a lot of disputes between landlords and their tenants," she said.
"We also understand that many people do lose their deposits because they haven't understood the contract they've entered into.
"We want to make sure that people in New South Wales are confident about the process but more importantly know the process."
- RADIO AUSTRALIA
