The Estate Agents Amendment (Underquoting) Act 2016 took effect in May 2017, delivering on a government commitment to improve estate agents’ practices.
The new laws include requirements for how estate agents estimate and advertise selling prices, ensuring prospective buyers are given clear information about comparable and recent property sales in the same area.
Under these changes, estate agents are now required to provide an information statement to prospective buyers, setting out the details of the three most comparable properties, the agent's estimated sale price and the median price for the suburb. Fines of more than $30,000 and loss of sales commissions are among enforcement options intended to deter estate agents from the dodgy practice of underquoting.
We worked with industry stakeholders and the broader community to ensure the new laws were understood, including holding information sessions in consultation with the Real Estate Industry of Victoria, across the state, for real estate agents and their sales staff.