Real Estate Victoria: CAV Legislation
Real Estate Victoria: CAV Legislation now in force
On 1 May 2017, changes to the Estate Agents Act 1980 came into effect to strengthen laws against underquoting in Victoria.
Under the underquoting laws, all Victorian estate agents and agents' representatives have additional obligations relating to:
- the estimated selling price
- comparable property sales
- Statement of Information for prospective buyers, and
- advertising prices, terms and symbols.
Penalties apply to those who do not comply with underquoting laws.
Producing a Statement of Information
Agents must prepare a Statement of Information for each residential property they are engaged to sell. CoreLogic has worked with Consumer Affairs Victoria to ensure it is easy to create a compliant Statement of Information reports with the Signature Reports tool inside RP Data Professional.
A Statement of Information must be:
- Displayed at all open for inspections
- Included with online advertising
- Given to a prospective buyer within two business days of a request
- Updated if there is a change in the indicative selling price
A Statement of Information 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, including the address, date of sale and sale price – or – if you did not take into account three comparable properties when setting the estimated selling price, 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. This may be for a period of between three and 12 months, and must not be more than six months old.
Comparable properties 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
"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."