Real estate reforms

Reforms for a fairer real estate market

Ask any potential home buyer: underquoting is unfair. You find your dream home, only to discover it sells for thousands more than the asking price.

It's a waste of time and money for anxious home seekers - and we want to stamp it out.

It’s why we’ve passed new legislation to end underquoting in the real estate industry.

These reforms are backed by the Real Estate Institute of Victoria.

The new laws require agents to provide prospective buyers with an information sheet setting out the price of three recent comparable sales, an indicative selling price, and the median price for the suburb.

The new laws will also mean:

  • advertising price ranges of more than 10% are banned
  • words or symbols in advertising such as ’offers above’, ’from’ or ’+’ are banned
  • advertising must be promptly updated if the seller rejects a written offer to purchase, or the agent’s price estimate changes
  • agents found guilty of underquoting could lose their sales commissions; and
  • agents have to prove on request from Consumer Affairs Victoria how they arrived at the estimated price.

Real estate agents caught underquoting will face hefty penalties of more than $31,000.