Peak body says changes would ensure "efficient, informed and transparent residential property transactions"
The Real Estate Institute of Victoria is calling for several reforms to improve fairness and transparency in home buying. REIV is advocating for full sales price disclosure, standardised residential sales contracts, identity verification of buyers and sellers and the same price estimation standards that apply to estate agents to be enforced for all residential sales.
The recommendations are part of a broader suite of suggestions that REIV said would ensure fairness and transparency for vendors, buyers and estate agents. They are part of the organisation’s submission to Consumer Affairs Victoria’s 2022 Property Market Review, which seeks to address the issue of affordability and other barriers faced by Victorians trying to get on to the property ladder.
“REIV recommendations aim to ensure efficient, informed, and transparent residential property transactions, a fairer housing market, and better pricing transparency,” said REIV president Adam Docking. “These changes would go a long way in supporting the Victorians in their real estate aspirations and ensure that consumers receive well-informed, professional advice from their agent.”
REIV made 10 key recommendations:
- Enhance the Statement of Information to ensure evidence-based pricing for all residential properties
- Mandatory ongoing professional development for estate agents and agents’ representatives
- Mandatory registration of all bidders at auctions and identity verification of vendors and buyers involved in a residential sale
- Adoption of an industry-wide standard for listing material facts, where buyers identify what is material to them
- Full disclosure of the sale price for all residential sales once a contract becomes unconditional
- Adoption of a standardised contract for the sale of all residential real estate
- Property to be offered for public sale once supporting documentation has been completed
- Sale of all new residential real estate should be bound by the same price disclosure regulations required of real estate agencies
- Review the Residential Tenancies Act to address affordability issues
- Reform the property tax regime
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REIV said it consulted its special interest groups focused on the sale of residential property, auctioneering and buyer advocacy when creating the recommendations.
REIV CEO Quentin Kilian said that the organisation wanted to work with government to ensure the adoption of the recommendations.
“REIV strives to work with government collaboratively to ensure that informed regulatory policy is developed so that everyone in the sector, including buyers, vendors and estate agents, have a fair and transparent system,” Kilian said.
