Business Services and Consumers Minister John Rau today released an industry reform package he says will also cut red tape for agents and increase protection for buyers.
Mr Rau said the Government received complaints from prospective buyers who have outlaid money for things including building inspections prior to auction only to see sale at far higher prices than advertised.
The reserve price will now have to be no more than 10 per cent over the acceptable selling price.
"At the moment, a vendor and agent can agree to a very low price in the sales agency agreement, market the property at that price, but then set the reserve at any figure above that advertised price," Mr Rau said.
"This is misleading, frustrating and unfair for prospective buyers. Under the legislation ... any prospective purchaser will have a reasonable idea about the reserve price before the auction.
Buying a home is the biggest financial investment that most people will ever make. It is important that the legislation is effective and robust, so that everyone can have confidence in the process."
by Daniel Wills, The Advertiser
July 01, 2012
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