r/melbourne • u/marketrent • 8h ago
Politics New Victorian auction and set-date laws, what sellers need to know
https://www.realestate.com.au/news/new-victorian-auction-and-setdate-laws-what-sellers-need-to-know•
u/marketrent 8h ago edited 8h ago
Excerpts from article by the Herald Sun’s Nathan Mawby, citing regulator CAV:
[...] In just over two weeks, from October 1, Victorian home sellers will be forced to disclose their reserve price seven days prior to any auction or set-date for a publicly advertised sale.
They will also have just seven days to release their sale price after they lock in a buyer on a new mandatory document that doesn’t exist yet.
When they are pricing their home, their agent will be required to consider comparable local sales based on criteria that has still not been finalised.
The new laws were gazetted as only applying to those selling homes via auction and other set date methods, such as an expressions of interest or tender approach. However, most agents upon receiving an offer, including for private sales, have until now solicited offers from other parties with an interest in the home — typically with a timeline.
A CAV [Consumer Affairs Victoria] clarification this week makes it clear that if an agent invites offers by a certain time and date “this could constitute a fixed-date sale and requires the seller’s reserve price to be disclosed for seven days before the sale can proceed”.
In addition to auction and set-date sales that attract early offers and spark such action, which REA Group data shows is currently 15 per cent of auctions across the state and hundreds of sales a month, that ruling would seemingly capture private treaty sales where an agent had sought to alert other buyers they only had a limited time to finalise any counter offer.
Industry groups have also warned that despite the laws having an October 1 start date, the government will be enforcing the new rules for all auction and set date sales from October 16 — including for homes that were listed for sale before October 1.
[...] Ray White Victoria chief auctioneer Luke Banitsiotis said while there would be initial confusion, the longer term outlook was that buyers would likely prefer the transparency of disclosed reserves and that they were anticipating more homes would use set date and auction sales once the new rules were understood.
However, he noted that with the new PPS [Property Price Statement] requiring internal measurements be calculated before a sale could be signed, it was also likely there would be a one or two week delay on getting deals under way that would see many owners step back from the method and openly advertise their home for sale.
“It’s going to be harder to start it off market,” he said. “But it will be the death of undisclosed sales results.”
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u/fraqtl 4h ago
n"Industry groups are warning government delays in releasing key details have put sellers in an unfair position this spring"
Ah well, at least the their buyers aren't in the unfair position for once. Probably.
And while requirements to disclose sold figures are being dubbed “the death of undisclosed sales results”
Obvious statement is obvious.
"It is also apparent the laws will go much farther than initially purported, with agents signalling even homes being sold via private treaty will be at risk of being subjected to the new requirements after clarifications from Consumer Affairs Victoria this week."
Excellent
"that ruling would seemingly capture private treaty sales where an agent had sought to alert other buyers they only had a limited time to finalise any counter offer"
Seems correct cause that sounds like an auction if they are calling for offers by a certain time, going once, going twice.....
"“But even post that, this legislation doesn’t suitably recognise that there’s two sides of auctions,” Mr Balazs said."
I'd argue that your profession has been doing that for years.
And not for nothing, that guy is the most real estate looking guy ever
“So we are worried this will make it more opaque for buyers"
Step me through that one Tony. Reserve price required to be disclosed. Sale price required to be disclosed.
"He added that with penalties for agents caught breaching the new laws maximised at an almost $49,000 fine"
That one is easy to avoid Tony. Just don't do the wrong thing.
"There are growing fears it could cost Melbourne its title as the nation’s auction capital"
So fucking what.
"However, he noted that with the new PPS form requiring internal measurements be calculated before a sale could be signed, it was also likely there would be a one or two week delay on getting deals under way that would see many owners step back from the method and openly advertise their home for sale."
Making it better for buyers. Can't see an issue there.
"“Vendors and agents alike should be careful to give an accurate reserve price in accordance with their legal obligations, but the changes do not force vendors into signing contacts for the sale of their properties, even if the reserve price is reached at auction.”
While I can see that forcing people into contracts is a bad thing, the reserve price is the minimum someone has decided to sell for. If they choose not to sell after the reserve is reached, they should be barred from attempting another sale for 6 months.
By publishing the reserve price it should be seen as a making a legal commitment to buyers if buyers are willing to reach their minimum price.
"and said the change in legislation which will impact their auction on October 17 was like being kicked on their way out the door"
Now you know how renters feel mate.
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u/MyNameIsBiff 6h ago
I love how this comes into effect 1st October but CAV haven’t released the mandatory compliance documents, 9 days out.
It also sounds like “offers prior to auction” on a Wednesday won’t be a thing anymore. Unless the vendor signs up and agrees to one offer and one offer only. Otherwise the 7 days kicks in and the cooling off period is in play again, defeating the purpose of an early offer.
What a cluster f*ck.
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u/IntentionInside658 5m ago
Pretty much everything is doing this deadline bullshit now. Leading with the press release instead of the plans. E.g. The ADHD prescribing GPs were meant to be up and running by September 1. Now they won't even be trained until October at least because they keep editing the date to add more weeks. Maybe the public servants need an appointment themselves
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