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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2012-07-11 Daily Xml
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REAL ESTATE SALES

An honourable member interjecting:

Mr ODENWALDER (Little Para) (14:17): I'm not, no. My question is to the Deputy Premier and Minister for Business Services and Consumers. Can the minister please inform the house about the government's proposed reforms to benefit both consumers and land agents?

The Hon. J.R. RAU (Enfield—Deputy Premier, Attorney-General, Minister for Planning, Minister for Business Services and Consumers) (14:17): I thank the honourable member for his question. Madam Speaker, as I think you are probably aware, and I think some others are aware, I have had a reasonably long and abiding interest in the real estate industry. It is important for all of us to remember that the investment that most people make in real estate is the largest single investment they will make in a lifetime. It is also an investment that they do not necessarily make frequently, so the notion that the ordinary person is actually as familiar with the transactional details of real estate as they would be with buying groceries is obviously poles apart.

The legislation has very important consumer protection aspects to it, given the significance of real estate investments to individuals. By the same token, it is important that agents are able to get on and conduct their business with as much transparency and flexibility as possible so that does not compromise the important primary objective of fair consumer protection.

In 2007, the parliament passed the Statutes Amendment (Real Estate Industry Reform) Act to establish higher standards for land agents in their professional behaviour. I was delighted that the government did so after being interested in the matter for some time. Since becoming Minister for Business Services and Consumers, I have asked the department to conduct a review on how the legislation—

Ms Chapman interjecting:

The SPEAKER: Order!

The Hon. J.R. RAU: No, a review of the 2007 act. The criteria for that review were basically three criteria: first of all, to strengthen the rights of consumers and small business; secondly, to increase the level of transparency of real estate auctions; and thirdly, to reduce the administrative burden on real estate agents and auctioneers where that is not inconsistent with the first two objectives.

A bill has been prepared and some of the elements of that bill that might be interesting to members are that it ensures that the reserve price in an auction is linked to the acceptable selling price detailed in the sales agency agreement; secondly, toughening up disciplinary action against real estate agents who are found guilty of serious offences under the land and business agents act; and reducing red tape and paperwork for agents.

The Statutes Amendment (Real Estate Reform Review and Other Matters) Bill 2012 is now out for consultation. The bill is available for download at www.cbs.sa.gov.au. The closing date for written submissions is Thursday 26 July. I am pleased to have observed that so far there have been some broadly supportive comments offered by the Real Estate Institute and its representatives. I have been consulting with them all along on this piece of legislation, and many of the elements contained within it are things that they have been seeking to have addressed for some time. I would encourage all members, in particular those with an interest in this important consumer protection area, to have a look at the legislation and offer their comments within the time allowed.

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