Real Estate Victoria: New CAV Legislation now in force

CoreLogic has been working with Consumer Affairs Victoria to ensure it is easy for our clients to create compliant Statements of Information.

Producing a Statement of Information

CoreLogic is helping ensure you remain compliant by enabling you to create a Statement of Information (SOI) report using our Signature Reports tool.

A few clicks to choose the type of report, enter the indicative selling price and choose your comparable sales. This will generate a one-page PDF for you – complete with the median sale price for the suburb and the relevant disclaimers. All you then need to do is download the PDF for emailing or printing.

Read our step-by-step instructional guide on our blog: Producing a Statement of Information using Signature Reports.

Quick links

Book training

If you’d like someone to take you through each step, training on the new legislation will be held every Thursday at 3.30pm throughout May and June

Click here to book

Watch the video

What you need to know about the new laws

On May 1, 2017, changes to the Estate Agents Act 1980 came into effect to strengthen laws against underquoting in Victoria.

These laws apply to residential property sales and complement the false and misleading representation provisions of the Australian Consumer Law (ACL). These laws do not apply to the sale of rural, commercial and industrial properties.

Under the new legislation, all Victorian estate agents and agents representatives have additional obligations related to:

  • The estimated selling price
  • Comparable property sales
  • Providing a Statement of Information for prospective buyers, and
  • Advertising prices, terms and symbols

Stiff penalties apply to agents who do not comply to these new laws. For more information: https://www.consumer.vic.gov.au/underquoting

Statement of Information

The Statement of Information created by agents must include:

  • An indicative selling price for the property. This may be a single price or a price range of up to 10%. It must not be less than:
    • Your estimated selling price
    • The seller's asking price
    • A price in a written offer that has already been rejected by the seller
  • Details of the three most comparable properties. These must include:
    • The address
    • Date of sale
    • The sale price

Or:

If you did not take into account three comparable properties when setting the estimated selling price, you must provide a statement outlining that you reasonably believe there are less than three comparable sales within the prescribed period.

  • The median house or unit price for the suburb (depending on what is being sold). This may be for a period of between three to 12 months, and must not be more than six months old.

Considerations of a Comparable Property

To be comparable, a property must be:

  • Of a similar standard or condition to the property for sale
  • Sold in the past six months and be within two kilometres of the property for sale if the property is for sale in the Melbourne metropolitan area
  • Sold in the past 18 months and be within five kilometres of the property for sale if the property is for sale outside of the Melbourne metropolitan area

When selecting the most comparable properties, you must take into account

  • The standard and condition of the properties
  • The location of the properties
  • The date of sale of the properties

Tips and Tricks

Pop-up Blockers

The first time you create a Comparable Sales Report or a Statement of Information Report, it may feel like nothing is happening. This is most likely because your computer is blocking pop-ups. To fix this, you need to allow pop-ups in your browser by selecting Always allow pop-ups from https://rpp.rpdata.com so you don't encounter this issue again.

Internet Explorer

Some users experience issues when using Internet Explorer as their browser, such as the page not refreshing properly when navigating between the Select Comparable Sales and Finalise tabs. As a work-around, click the refresh button to refresh the screen. Alernatively, we recommend you use our preferred browser - Google Chrome (or even Firefox).

Testimonial

"Having been a CoreLogic customer for nearly 10 years, both my sales and property management teams at Harcourts Mount Waverley have come to rely on the valuable and extensive research information available at our fingertips that CoreLogic offers us. It is great to see the recent changes to RP Data Professional that allow us to meet the Consumer Affairs Victoria changes to compulsory comparable reporting requirements on properties so easily. The mapping tools allow us to see easements, land contours and so much more. The speed that sales data is updated is also impressive. No one working in real estate should be without RP Data Professional and it is a truly invaluable product that we would be lost without."

Martin J. Giles
Director, Harcourts Mount Waverley