Real estate agents will soon need to disclose all inspection reports taken out by a vendor or potential buyer when listing a property under new reforms.
The reforms were announced by Minister for Innovation and Better Regulation, Victor Dominello, who said it would reduce duplication of inspection reports, promoting peer-to-peer services that offer discounts to consumers.
Amendments to the Property Stock and Business Agents Regulation 2014, will require agents to provide buyers who take out a sales contract with the names of companies which have recently completed inspections of the property. The register will also need to indicate which firms enable peer-to-peer sharing discounts.
Under the new laws which are due to come into effect before July, agents will also be required to update their disclosures after each new report is completed.
REINSW CEO Tim McKibbin said: “We are working with the NSW Government and report providers to assist members with these new obligations as effectively and efficiently as possible.”
One of the aims of the new reforms is to give prospective homebuyers in NSW greater access to discounted pre-purchase inspection reports.
Minister Dominello said: “Building and pest inspection reports can cost anywhere from $200-$600 each, which represents a significant outlay for potential buyers.
“This reform is a practical demonstration of the NSW Government’s commitment to embracing the collaborative economy. We want to encourage market disruptors whose business models rely on delivering better consumer experience and greater transparency, to flourish.
“This policy is the first of its kind in Australia and forms part of the NSW Government’s broader reform of the real estate sector.
“Having start-ups and disruptors compete in the property market and offer inspection reports is reflective of our 21st century economy. It also increases competition and reduces the price of these reports for potential buyers.”
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