10 ways to reform the real estate industry: REIV
Full sales price disclosure and standardised contracts are just two of the recommendations that the Real Estate Institute of Victoria (REIV) has proposed to improve transparency and fairness in property transactions.
Those recommendations come from REIV’s submission to the Consumer Affairs Victoria’s 2022 Property Market Review, which is taking a closer look at underquoting and agent conduct, as well as aiming to ensure that laws applicable to the property market are fit for purpose.
According to REIV president Adam Docking, the recommendations “aim to ensure efficient, informed and transparent residential property transactions, a fairer housing market, and better pricing transparency”.
“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,” he said.
The 10 key recommendations, as outlined by the REIV, are included below:
- Statement of information
Enhance the statement of information to ensure evidence-based pricing for all residential properties.
- Ongoing professional development
Make ongoing professional development for estate agents and agents representatives mandatory.
- Compulsory registration of bidders
Require registration of all bidders at auctions and identity verification of vendors and buyers involved in a residential sale.
- Industry-wide standards for listing material facts
The REIV is calling for the adoption of an industry-wide standard for listing material facts, where buyers identify what is material to them.
- Full disclosure
Once a contract becomes unconditional, the REIV recommends full disclosure of the sale price for all residential sales.
- Standardised contracts
The REIV is recommending the adoption of a standardised contract for the sale of all residential real estate.
- Public sale
Property to be offered for public sale once supporting documentation has been completed.
- Standardise price disclosure regulations
Ensure the sale of all new residential real estate is bound by the same price disclosure regulations as required of real estate agents.
- Review the Residential Tenancies Act
The REIV is urging that this review be undertaken in a bid to address housing availability issues.
- Reform the property tax regime
Highlighting that the current regime is contributing to the high cost of changing properties, the institute notes that the tax system “continues to be a stumbling block for many buyers”.
According to a statement from the REIV, special interest groups focused on the sale of residential property, auctioneering and buyer advocacy were all consulted prior to the paper’s submission to the state-based review.
REIV chief executive Quentin Kilian has also weighed in, indicating that the REIV wants to work with the government, ensuring “swift adoption” of all 10 recommendations.
He said: “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.”
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