The REIV has written to all Victorian MPs flagging concerns including a mandatory 14-day lockout before a property can be sold privately, a seven-day reserve price publication rule, and the removal of early deposit release protections.
“We have serious concerns that many of these changes are intentionally vague and demonstrate a lack an understanding of a property transaction process in Victoria,” says Real Estate Institute of Victoria (REIV) CEO Toby Balazs.
“If passed in its current form, this Bill will have the unintended effect of increasing litigation risk for all parties involved in real estate transactions,” he said.
“Our recommendations are pragmatic, backed by experience and presented as effective measures to drive greater transparency in the Victorian real estate market.”
Mr Balazs clarified that the REIV is not anti-disclosure and the organisation actively supports market transparency.
“We have advocated for sale prices to be disclosed. We believe it should be an open and transparent the moment it goes unconditional, the price should be disclosed.”
However, he warned that the mechanics of the current draft place an impossible burden on the sector.
“The overarching point is that this puts so much pressure, so much unnecessary and unfair pressure, on the agent who’s doing their job,” he said.
“If a vendor or a buyer says ‘I’m categorically not allowing you to disclose the sale price,’ what do they do? How is that fair for the agent to have to make that choice or to be liable for that decision?”
He further emphasised that the legislation forces a commercial and ethical double-bind.
“Does this now put the agent in the position where, at the risk of a huge fine, they are forced to make a decision whether they do the right thing by the buyer or the seller in terms of what they want versus being exposed to a $50,000 fine? It just adds unnecessary complexity to what is already a pretty tough job.”
What you need to know:
Forced sales data reporting: Under Section 47AN, agents may face up to a 240 penalty unit fine if they fail to disclose property sale data directly to Consumer Affairs Victoria. As of the 2025–26 financial year, 1 penalty unit = $203.51, making the fine $48,852.10.
The REIV points out this “measure misaligns accountability with decision-making authority” because “the decision to disclose sale price rests with the buyer or seller, not the agent”. They also slammed the proposed government database for a “lack of justification for duplication of database and associated taxpayer costs” given existing system tracking.
The 14-day sale availability lockout: The Bill mandates that a property cannot be sold privately, or via an early pre-auction offer, unless the Section 32 has been available for at least 14 days.
The REIV notes this requirement “restricts any valid transaction where the method of sale is a private sale, or an offer is accepted prior to auction”, which “delays transactions, reduces flexibility for vendors and purchasers, and interferes with established sales practices that allow parties to respond to market opportunities”.
The 7-day reserve price trap: Agents face a 240 penalty unit fine if a vendor’s reserve price is not published 7 days prior to an auction.
Because the draft provides “no clarity on situations where the seller’s reserve may change during the 7-day period”, the REIV warns that any late change implies the campaign “would need to change each time the reserve is altered”, which “is not practical or feasible and significantly increases costs for vendors”.
Shifting reserve accountability: Section 47AG(2) requires agents to propose a reserve price with reasons. The REIV has demanded this section be completely removed, stating it is an “inaccurate interpretation of the agent’s role” because “the reserve price is determined by the vendor, not the agent”.
Forcing this onto agents “shifts reserve-setting responsibility onto agents, creating additional professional indemnity, compliance and litigation risks that do not currently exist”.
The death of Section 27 early deposit release: The Bill repeals Section 27 of the Sale of Land Act 1962, replacing it with a contractual model.
The REIV warns this is a “removal of statutory protections for purchasers and significant departure from established conveyancing practice” that will “adversely affect vendors who rely on early access to deposit monies to facilitate related property purchases, reduce borrowing costs, discharge mortgages or meet other financial commitments prior to settlement”.
Banning early commission: Section 26B explicitly dictates that an “estate agent must not retain commission before settlement”.
The REIV slams this as an “unnecessary restriction on receiving payment for services delivered where no further influence on outcomes is possible”.
Key REIV Recommendations for Parliament:
- Represent the reserve price as a 10% range to allow for price adjustments without legally resetting or changing the auction date.
- Replace the 14-day availability window with a requirement that the Section 32 be ready “within 14 days of the property being offered for sale” so bona fide early offers can still be accepted.
- Retain Section 27 to preserve the statutory entitlement model for early deposit releases.
- Introduce statutory defences for agents if they cannot disclose sale prices due to direct client confidentiality instructions.