REIV calls for full sale price disclosure as part of property market review

The Real Estate Institute of Victoria (REIV) has called for full sales price disclosure, standardised residential sales contracts and a review of the Residential Tenancies Act to address housing availability issues.

The recommendations form part of the REIV’s submission to Consumer Affairs Victoria’s 2022 Property Market Review, which examines property affordability, legislation, estate agent practices and other barriers facing those wanting to enter the market.

The REIV has 10 key recommendations that address fairness and transparency for vendors, buyers and agents themselves.

They include full disclosure of the sale prices for all residential sales once a contract becomes unconditional, adoption of a standardised contract for the sale of all residential real estate and review of the RTA to address housing availability.

“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 Victorians in their real estate aspirations and ensure that consumers receive well-informed, professional advice from their agent.”

Other recommendations include enhancing the Statement of Information to ensure evidence-based pricing for all residential properties, mandatory ongoing professional development for agents and agent representatives, compulsory registration of all bidders at auctions, and identity verification of vendors and buyers in residential sales.

Mr Docking said the REIV had also called for the adoption of an industry-wide standard for listing material facts, where buyers identify what is material to them, and for the sale of all new residential real estate to be bound by the same price disclosure regulations as those required of real estate agents.

The REIV would also like to see property offered for public sale once supporting documentation has been completed and a reform of the current tax regime, which contributes to the high cost of changing properties and continues to be a stumbling block for many buyers.

REIV Chief Executive officer Quentin Kilian said the REIV wanted to work with the Victorian Government to enact its recommendations quickly.

“The 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. 

Submissions for the review have closed and a final report will be delivered to the government at the end of April.

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