New laws designed to protect Victorian homeowners are lacking in detail, according to the Real Estate Institute of Victoria.

The Sale of Land Amendment Bill, which was passed in parliament last week, means developers can only exercise a sunset clause with written consent from the buyer, or by an order of the Supreme Court of Victoria.

The new laws also prevent the auction of land before 1pm on Anzac Day; prevent certain term contracts and rent-to-buy arrangements; introduce greater protections for people who purchase options to buy land as part of a land banking scheme; and strengthen the existing requirement for vendors or real estate agents to disclose material facts about a property, and enable guidelines to detail what a material fact is likely to be.

At a glance:

• Victorian parliament passed the Sale of Land Amendment Bill 2019 last week.
• The new laws strengthen the existing requirement for vendors or real estate agents to disclose material facts about a property.
• The REIV said there needs more clarification in relation to the guidelines mentioned in the bill.

REIV Acting CEO Keith Banks told WILLIAMS MEDIA that while the institute supported transparency in regards to the disclosure of material facts, the associated regulations needed to be workable.

“We would be pleased to work with the Victorian Government on the regulations to assist in understanding what kinds of material facts should be disclosed," he said.

"At this stage, there is no indication of what these guidelines will entail."

“For example, the REIV would like greater clarity around questions such as - is it relevant that a murder was committed in a property in the 1890s? What’s a reasonable period of time to make such enquiries? What are the protections for an agent who has made reasonable enquiries?"

The changes implement key outcomes of the Consumer Property Law Review’s examination of the Sale of Land Act 1962.

The new laws on sunset clauses apply from 23 August 2018 to ensure any existing eligible and future off-the-plan contracts are protected.

Mr Banks said the REIV "strongly supports existing deterrents to misleading and deceptive conduct both at common law and wider statutes".

Click here for more information on the Sale of Land Amendment Bill 2019.

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