Authority Updates - Victoria - September 2016

Changes to the Estate Agents Act 1980

Underquoting Laws to Protect Homebuyers

The Victorian Government introduced new legislation into Parliament on 18th August designed to stop underquoting by estate agents. These will require agents to provide prospective buyers with an information statement about the property for sale, which includes 3 recent comparable sales, an indicative selling price and the median price for the suburb.
 
Other changes include:

  • ban advertising price ranges of more than 10%
  • ban words or symbols in advertising such as 'offers above' 'from' or '+'
  • require advertising to be promptly updated if the seller rejects a higher written offer to purchase the property, or the agent's price estimate changes.

Estate agents caught engaging in underquoting will face penalties and risk losing their commissions. Consumer Affairs Victoria will have new powers to require agents to demonstrate how they arrived at a property's estimated price.
 
If passed by Parliament, the new laws will commence next year.   A copy of the proposed legislation can be found here.

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Disclaimer: The information herein has been prepared by SAI Global Property Division Pty Ltd ACN 089 586 872 from information released by the Authority cited on this page. It is provided as general background information only; it is not complete; and it does not comprehensively address this subject matter. Readers should not consider the information so provided as advice nor as a recommendation to take any particular course of action. Persons needing advice should consult their own solicitor, accountant or other professional adviser.