A GUIDE TO THE NEW REAL ESTATE LAWS IN SA
Nick Baranikow, Senior Agent & Auctioneer at Brock Harcourts, Adelaide has provided this invaluable guide on recent changes to the real estate laws in SA. With the spring selling season upon us, it’s a great time to be familiar with them.
Pricing
The most notable change is the way we advertise prices. New pricing arrangements will put an end to the under quoting where buyers are deliberately lured to properties by unrealistically low prices.
Agents have to include a likely selling price in their agreement with a vendor, and the vendor has to declare a minimum acceptable price. The advertised price is based on the highest of these prices. Advertised price can be one of three options – a single price, a price range that spreads no more than 10% or no price at all.
Where no price is advertised, the agent will not be allowed to discuss the vendor’s minimum price with a prospective purchaser without the express written approval of the vendor, usually once an initial offer has been made in writing. Instead, the agent will provide prospective purchasers with information on sales in the immediate area over the previous few months.
Our preference is to help provide clarity to buyers by using a price or a price range. |
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The effect of this will be that all the advertised prices will be a realistic guide. This is not price control – properties can still sell for whatever price they fetch. But it will, by law, keep advertising prices as accurate as possible, and it will eliminate bait pricing by some agents.
Auctions
The new legislation also makes significant changes to auction practices. All bidders must register with the agent to bid at an auction and must be provided with a guide to the auction and sales process. It is an offence for any person to “dummy bid” or, or to prohibit or limit another person’s bidding.
An auctioneer may make bids on behalf of the vendor but not more that three such bids and only for amounts below the reserve price. Any such bids must be audibly announced by the auctioneer as a “vendor’s bid”.
At an auction, agents are required to record in writing the agreed reserve, document any changes to the reserve and keep a record or all bids made.
Buying a property
Agents must give prospective purchases an information notice or checklist to assist them discover whether there are features of the property that may adversely affect the value, enjoyment or safety of the land, such as the presence of asbestos, illegal building work, proximity to live music venues, structural problems and so on.
There are many other changes but these are the ones you might notice out in the market. They are aimed at providing a realistic, transparent property market, which is good for everyone. |
