Hi
I noticed there are so many changes that agents must now implement, due to this new legislation. To me, a lot of these seem to have come out of left field...
Just wondering why has this new legislation been introduced ? Was there major problems before ?
Name: Nathan
Location: Adelaide
1 comment:
Hi Nathan
Thanks for your question!
Yes there are a number of changes that the entire Real Estate Industry are required to make under the new legislation.
This legislation is actually quite similar to what the other states have had in place for a number of years, and it's designed to make the entire sales process more transparent while protecting and aiding the consumer.
A prime example is the strict guidelines regarding the pricing of a property. Nathan, you'd possibly be aware that over the years a number of Agencies have practised a process of pricing a property high to secure a listing, then immediately needing to drop the price to gain interest on the property and eventually a sale. Well this can no longer happen - the minimum price a property can be advertised at is at a level that the Vendor would be willing to accept - as either a set price or price range not exceeding 10%. So pricing is more accurate and transparent than ever, which benefits both the Vendor and the Purchaser.
The new legislation also restricts how long a vendor can be locked into a sole agency - the maximum is 90 days. This gives the vendor flexibility if they aren't happy with their Agent and also stops the practice of locking a Vendor into an agreement for 6-12months, which in some cases was happening throughout the industry.
Nathan, I hope this helps to answer your questions. At the end of the day transparency in all Real Estate transactions is what we're aiming for!
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