Buyers are set to benefit from new price quoting legislation, which aims to stamp out underquoting in Victoria’s residential property market.
Effective 1 May 2017, the Estate Agents Amendment (underquoting) Bill 2016 will dictate how agents quote and market residential property – including homes sold by auction and private sale.
The new legislation requires agents to provide prospective buyers with a Statement of Information, containing the price of three comparable properties, the suburb’s median house price and the agent’s estimated selling price.
The estimated selling price must be expressed as either a single amount or a price range of no greater than 10 per cent. Agents are also required to revise this estimate if the vendor rejects an offer above that price.
Under the new legislation, agents found guilty of underquoting will face fines of up to $30,000 and may lose any commission received.
REIV CEO Gil King said the changes will provide greater transparency in the market and will improve consistency of price quoting across the state.
“This new legislation is designed to be effective in both a rising and falling market and will ensure prospective buyers have access to the same information as the vendor,” he said.
The changes to price quoting legislation – and how it will impact on both buyers and sellers – will be a key focus at the REIV’s free Homebuyers Seminar, being held at the State Library on 19 April.
In addition, the Seminar will deliver insights into the state’s property market as well as areas that continue to offer value for money.
Legal and financial experts from Parke Lawyers and Bendigo Bank will provide advice on loan pre-approval, settlement processes, insurance, understanding the Contract of Sale, conveyancing, and protecting your asset after you buy it.
Free registration to the REIV Homebuyers Seminar is available at reiv.com.au/homebuyers or call 03 9205 6666.
When: 19 April 2017 6pm-8pm
Where: State Library of Victoria (328 Swanston Street, Melbourne)