Victoria property sale disclosure and audit regulations

The Victorian government has introduced legislation to increase transparency in the real estate market and combat underquoting. Starting October 1, real estate agents are required to disclose property sale prices within seven days of a sale. This information must be made publicly available for at least 18 months through a Property Price Statement.

Further regulations, effective October 16, mandate that property vendors advertise their auction reserve prices at least seven days before an auction or fixed-date sale. The new Property Price Statement replaces the previous Statement of Information, providing more detailed property features and comparable sales data.

Early reports from areas such as Gladstone Park and Watsonia suggest that these disclosures may encourage more competitive bidding. In Gladstone Park, a vendor who disclosed a $700,000 reserve saw the property sell for $801,000. Similarly, in Carlton North, a 1970s apartment sold for $752,000, nearly $40,000 above its listed reserve, with agents noting the law has brought ‘more transparency to the marketplace.’

In a parallel regulatory effort, Consumer Affairs Victoria is increasing enforcement regarding trust account audits for estate agents and conveyancers. Since 2021, investigations into audit breaches have resulted in over $400,000 in fines. Under recent legal changes, the Business Licensing Authority now has the power to suspend licenses for professionals who fail to complete mandatory audits. Estate agents must lodge audits within three months of the end of the financial year, while conveyancers face a seven-week deadline.