Australian Securities and Investments Commission chairman Jeff Lucy last week called for nationally consistent real estate legislation and regulation of the property industry in an appearance before the Senate Economics Legislation Committee.
Currently, the states and territories have major differences in real estate legislation and regulation, including licence categories, licence qualifi-cations and education requirements.
Western Australia’s legislation is the most stringent and compre-hensive in Australia, according to Real Estate Institute of Western Australia (REIWA) president Greg Rossen, and any legislative changes must still take into account differences in markets.
“REIWA recognises that uniform legislation is helpful and effective in making the economic, social and legal systems operate effectively, but makes the point that it is also necessary to take into account that different real estate markets have evolved in different ways,” Mr Rossen said.
“For example, less than 2 per cent of houses in Perth are sold through auction, whereas in Melbourne and Sydney, it is almost 20 per cent.
“Any attempt to impose uniform legislation would need to take these sorts of differences into account.”
REIWA is the only state chapter which has had its articles of association and documents approved by the Australian Competition and Consumer Commission (ACCC), Mr Rossen added.
“WA leads Australia in terms of best practice, and 95 per cent of all real estate transactions are conducted through REIWA agents,” he said.
Real Estate Institute of Australia (REIA) president Ian Wells said nationally consistent legislation would enhance consumer confi-dence and industry professionalism, and make it easier for everyone to do business.
“In an increasingly global business environment there are no boundaries on the business map – regulators should take account of the business environment,” Mr Wells said.
“It’s time for the federal and state governments and all regulators involved in consumer affairs to work together to achieve consistent legislation.
“The benefits to consumers and real estate practices would be significant.”
