New Real Estate Laws Simplify Contracts Process

Article excerpt

CHANGES to real estate laws that streamline and simplify the residential real estate contract process came into effect on October 1.

Minister for Fair Trading, Peter Lawlor, said the changes to the Property Agents and Motor Dealers Act 2000 would bring fairness to vendors without compromising the rights of buyers.

"Under the previous rules the process of delivering real estate contracts was very prescriptive," he said.

"Agents had to present the required warning statement, contract and other documents in a very specific order.

"As a result, some buyers were using technical breaches as small as a page being out of order when a contract was faxed, to terminate contracts."

Minister Lawlor said under the new rules the documents don't have to be in a strict order, but the warning statement must still be attached to the contract.

"This change will protect vendors from such technical breaches without compromising the rights of buyers," he said.

"Buyers will keep their vital protections and the right to a cooling off period, as well as the provision of important information in a warning statement from selling agents. …