MEDIA RELEASE
The Real Estate Institute of Victoria (REIV) reiterates the Institute’s commitment to helping to ensure a fair and transparent property sector in Victoria.
Strongly denouncing any form of unlawful underquoting, the REIV has called for a Victorian Government-led, sector-wide response to the issue, involving a genuine stakeholder consultation process.
Central to this response is ultimately arriving at a clear legislative position that serves to avoid the current confusion about what unlawful underquoting is and isn’t. Including – in terms of the latter – the many cases where the scrutinised gap in the advertised and selling price is the product of competitive bidding within a dynamic market, rather than any form of deception on the real estate agent’s part.
The REIV and its members would welcome the opportunity to leverage their unique on-the-ground experiences and insights in contributing constructively to this consultation process.
Informed by such sector experiences, the REIV considers that – among other practical reforms – the mandatory pre-auction disclosure of reserve prices by sellers could improve transparency for buyers without comprising the legitimate interests of sellers.
Jacob Caine, REIV Interim CEO reiterated that his organisation remains committed to seeking to uphold the integrity of the state’s property sector, including by continuing to offer effective education and support to members to help ensure their regulatory compliance in respect of underquoting laws.
“While the recent media reporting has served to bring the issue of underquoting back into the public spotlight, the REIV has long been keenly aware of how instances of non-compliance can erode consumer confidence in the fairness of the residential property market. Not least given the ongoing national housing crisis, when prospective purchasers are desperate for a fair go,” Mr Caine said.
“We urge the Victorian Government to undertake a thorough consultation process involving sector stakeholders, like the REIV and its members, aimed at arriving at a clear and robust legal framework for underquoting.
“And key to achieving this are common sense practical reforms, such as the proposed mandatory reserve price disclosure rules for sellers prior to the auction, which could make price expectations clearer for buyers and help to restore their confidence in the operation of the residential property market.
“While the immediate focus is rightly on underquoting, this shouldn’t distract from the way in which continuing housing supply issues are compounding the problem and the vital need for property sector settings that deliver a fairer and more efficient property market for all Victorians.”
Media Contact: media@reiv.com.au - 03 9205 6607