Understanding the Statement of Information

May 1st, 2017 brought changes to the Estate Agents Act 1980 which aimed to strengthen laws governing under quoting in Victoria. These new laws applied to the sale of residential property and worked in conjunction with policies in place by the Australian Consumer Law. Currently, they are not applicable to the sale of rural, commercial or industrial properties. All agencies in Victoria were ordered to comply and provide a Statement of Information for all listings of property for sale. This document aims to give transparency to a property's value to inhibit the ability of an agent or agent's representative to under quote. Where to find your Statement of Information Your Statement of Information can be found on display at all open for inspections of the respective property, included with any online advertising, or given to prospective buyers within two business days upon request. What to take away from the Statement of Information The Statement of Information must include a range of facts and figures, the most important things to review in this information is often the indicative selling price for the property. This amount may be a single price or a price range of up to 10 percent and is not allowed to be lower than the agent's estimated selling price, the seller's asking price or be a figure that has already been rejected. If an estimated selling price changes or the seller rejects a higher written offer, agents must update any online advertising within one business day, keeping prospective buyers always in the know. Also important to look at carefully in the Statement, is the sale prices of comparable properties in the area. This can help a buyer validate a property's worth and see how a price range was decided on by an agent and vendor. There are serious consequences for agents not complying with these underquoting measures. For more information see https://www.consumer.vic.gov.au/underquoting or speak to us at Eview Mornington Peninsula.

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