Peak body calls for ‘game-changing’ reforms

The Real Estate Institute of Victoria is calling 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 form part of a broader suite of proposals that would ensure fairness and transparency for vendors, buyers, and estate agents alike.

They form part of REIV’s submission to Consumer Affairs Victoria’s 2022 Property Market Review, which seeks to address the issue of affordability of property, and other barriers facing those wishing to enter the market in Victoria.

“REIV recommendations aim to ensure efficient, informed, and transparent residential property transactions, a fairer housing market, and better pricing transparency,” REIV president Adam Docking said.

“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’s key recommendations include an enhancement of the Statement of Information to ensure evidence-based pricing for all residential properties and mandatory ongoing professional development for estate agents and agent’s representatives.

There’s also a call for compulsory registration of all bidders at auctions and identity verification of vendors and buyers involved in a residential sale, the adoption of an industry-wide standard for listing material facts, where buyers identify what is material to them and full disclosure of the sale price for all residential sales once a contract becomes unconditional.

Lastly, the REIV wants to see the 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 and a review the Residential Tenancies Act to address housing availability issues.

In forming its response, REIV consulted its special interest groups focused on the sale of residential property, auctioneering and buyer advocacy, ensuring input from particularly relevant specialisms within the REIV membership.

REIV chief executive officer Quentin Kilian said that they want to work with government to ensure the swift adoption of its 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”, he said.