STATUTES AMENDMENT (REAL ESTATE REFORM REVIEW AND OTHER MATTERS) BILL

Final Stages

Consideration in committee of the Legislative Council's amendments.

(Continued from 15 May 2013.)

Mr GARDNER: Mr Deputy Speaker, I draw your attention to the state of the house.

The DEPUTY SPEAKER: No quorum present. Ring the bells.

A quorum having been formed:

The Hon. J.R. RAU: I move:

That the Legislative Council's amendments be agreed to.

I am pleased to report the bill was passed by the Legislative Council on 14 May. The council supported changes to the agreement between agents and vendors. The government fully supports these amendments—

The CHAIR: Historic.

The Hon. J.R. RAU: It is historic, yes. The government believes that they provide consumers with protection due to a number of factors. First of all, the notice of expiry will encourage the vendor to consider the progress of their agent. Secondly, the vendor has the right to terminate the extension immediately and the automatic rollover only occurs if a notice of expiry has first been sent by the agent.

These news laws are a huge step in protecting the rights of South Australian consumers. If a property is advertised at a price, homebuyers will now have greater certainty in knowing what the vendor is willing to accept. This is great news for homebuyers who invariably spend a great deal of time, energy and emotion—not to mention money—before making a bid on a property.

Most of all, these changes will eliminate the insidious practice of underquoting. It is unbelievable that the Liberal Party moved amendments in both houses which would have protected rogue agents who engage in this practice. I am glad, however, that a majority of members were firmly and rightly opposed to this grubby practice. Fortunately, common sense won the day.

In addition to giving consumers added protection and making the real estate process far more transparent and accountable than ever before, these laws also remove a significant amount of red tape for real estate agents and allow them to conduct their business with less cost and more flexibility. It is a win-win for all parties.

I would like to thank all of the participants—I don't use the 'S word', Chair—particularly the Real Estate Institute of South Australia and its chief executive, Mr Greg Troughton, for their invaluable contributions to the development of this legislation. I would also like to thank Paul Edwards from Legislative Services for his work on reforms over the last 18 months.

Along with these reforms, the South Australian government will continue working with industry on national licensing and eligibility criteria for occupations. I have had concerns expressed to me that the National Occupation Licensing System (NOLS) due to commence next year will dilute the standards applicable to agents and sales representatives in South Australia, and this is a matter of some concern to me. As members know, I am not necessarily always totally enthusiastic about everything that emanates from central places.

While the government acknowledges the value of a national licensing scheme and harmonised eligibility criteria in the abstract, we also recognise that the additional specialised nature of duties undertaken in South Australia by real estate agents and sales representatives in South Australia means that we have particular requirements and standards which we do not wish to see diluted. We wish to maintain these high levels of service and consumer protection for all South Australians, and, can I say, the industry does too; they have been very, very clear about that.

For this reason, the government will fight to ensure that these higher levels are able to be maintained by setting qualifications at a higher level in South Australia in relation to these additional specialised duties carried out in this state outside the NOLS eligibility requirements. The government will continue to engage with REISA and other interested parties in order to achieve this outcome through the NOLS consultation process and the passage of legislation reform required to enact NOLS I believe in 2014.

All of this work should give all South Australians a greater level of confidence in the integrity of the real estate industry. I say again that the exercise of going through this with the real estate industry has overwhelmingly been a cooperative and entirely satisfactory process from the government's point of view. Even though there were some difficult elements, I again congratulate the industry for having such a mature and responsible attitude to law reform in this area and the way in which the industry has embraced the protection of consumers in South Australia; it is to the industry's credit. I commend the bill to the house without further amendment.

Mr GRIFFITHS: I indicate on behalf of the opposition that we acknowledge the debate that has occurred in both chambers. There is no doubt that it has been a rather interesting debate. I have spoken to the Hon. Terry Stephens, who had responsibility for this bill in the upper house from an opposition perspective. I understand, acknowledge and support the fact that the amendments that have been agreed to will become law. The debate has allowed me to have a lot more information about real estate than I ever thought I would as well, so we all come from a better informed position now.

I am very pleased with the Attorney's comments about the national licensing. Through discussions that I have had with Mr Troughton and other officers of REISA, and real estate agencies, there has been great concern for some time since there has been talk of this legislation. The overwhelming level of professionalism that exists in South Australia—and you have acknowledged that in your own contributions—toward the quality and the service they provide will be preserved no matter what the federal harmonisation proposal is. Let's move forward now and make sure that real estate is a confidence builder for both vendors and agents and that the industry works well.

Motion carried.