Real estate agents face fines of up to $30,000 and could be stripped of sales commissions under proposed laws aimed at preventing under-quoting.
State Consumer Affairs Minister Jane Garrett said last week the proposed changes would provide consistency in both property pricing and information provided to vendors and buyers.
Under-quoting is when an agent misleads prospective buyers about the likely selling price of a property, usually its auction estimate.
New legislation would also seek to ban agents from advertising property prices with a “plus” or “offers over” to designate a higher price than advertised.
Timing of introduction of new legislation is yet to be revealed by the government.
Ms Garrett said a new law would ensure property prices were advertised within a 10 per cent range of the vendor’s expectation.
Agents would also provide prospective buyers with fact sheets, which would include an estimated selling price, three comparable recent sales and the median price for the suburb.
Good news for buyers
LJ Hooker Werribee director Adrian McEvoy said the proposed reforms were great news for buyers.
“It just isn’t fair at the moment,” Mr McEvoy said. “It’s about time the laws were tightened up and made fair for everybody.”
Paul Nuske, director of Tri West Professionals Real Estate, said the proposed reforms were a good move.
“Sharpening up the laws gives buyers a real idea of the value of properties. It’s about being more transparent,” he said.
Real Estate Institute of Victoria chief executive Enzo Raimondo has also backed the minister’s proposed reforms. “They would be effective in a variety of market conditions and for all stakeholders in property transactions.”
Last July, Ms Garrett directed Consumer Affairs Victoria to inspect 200 auctions during 2015 and 2016. As a result, 10 investigations are under way into under-quoting, and legal action is ongoing in the Federal Court, the next hearing being in July.
