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Legislative Assembly for the ACT: 2003 Week 5 Hansard (6 May) . . Page.. 1565 ..

MR STEFANIAK (continuing):

There are also provisions where an agency which quotes unrealistically high or unrealistically low estimated prices for real estate will commit an offence. It will not be an offence for unrealistically quoting a high price or a low price, it will be more-this is under section 89 of what will be the act-for not putting in documents. Whilst it is clever, I think it is reasonably effective.

That section will enable the Commissioner for Fair Trading, by written notice to an agent, to require that agent to give evidence of what the agent relied upon in making the representation about their estimate of the selling price-that is, if they give that estimate to a seller or a buyer-or place it in an advertisement.

The commissioner, of course, has to give reasonable notice to let the agent comply with it. However, if a person fails to comply with a notice-that is a notice to give that information-they will commit an offence. The maximum penalty is 100 penalty units, which is a fine of $10,000. That effectively forces the agent to provide whatever documentation they had. If it is reasonable, I would not think anything further would happen but, if they fail to give that information or if they are relying on shonky information in the first instance, they would be subject to a fine. In the second instance, I am sure some other potential problems would arise as a result. That is basically what that means.

It also provides that agreements between agents and sellers have to be in writing. That will allow home owners to better understand rights and obligations under agency agreements. Agents also have to disclose anything such as kickbacks they now receive from real estate transactions. That is not to say they cannot do it, but they have to disclose it.

There will be a register of licensed principals and registered salespersons, including property managers. Details of disciplinary action taken against them will be maintained by the Fair Trading Office. That will be available for public inspection. The register will assist consumers in their choice of agent. If they check that and find that an agent has a particularly bad record, they would probably-sensibly-pick an agent with a clean record.

A consumer compensation fund will continue to operate to protect consumers in the event of the financial collapse of a licensed real estate, stock and station or business agent. I have already expressed some of the issues we will be watching closely in relation to that.

Whilst some of those steps perhaps seem fairly severe I note that the agents are pretty happy with it. The industry has been very helpful. The consultations have included people such as Ken Roberts of the Real Estate Institute and a number of other persons there; agents; consumer organisations; the CIT; the Agents Board; and our old Assembly colleague, Harold Hird. He is very happy with this and has had significant input. Might I publicly thank him for his interest and the input he has had. I note that the Attorney has already done so, but Mr Hird has had an interest and an input in this, going back a number of years.

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