
The Office of Fair Trading NSW (OFT) recently released a report on the level of regulation in the real estate industry to address the key issue of consumer vulnerability. What are the implications of this report for business, consumers and the real estate sector?
The focus of the OFT’s report is the Property Stock and Business Agents Act 2002 (the “Act”) which governs the provision of real estate services in New South Wales. It investigates a wide range of issues, such as the need for increased regulation of the real estate sector by making agents more accountable for their actions.
In an industry where each purchase typically involves a major investment of personal wealth, the OFT investigation has revealed that consumers have surprisingly little clarity around their rights and the obligations of real estate agents.
If litigators are to reform the sector, consumers may respond favourably to increased transparency and become more willing to engage in property transactions. It will also be significantly easier for solicitors to advise clients on the legal issues of their property transaction if even a small proportion of the OFT’s recommendations are implemented.
The full report is available on the OFT website and is open for public comment. The deadline for online submissions and comments is 30 September 2008.
27-Aug-2008