Issue Date:  -  Friday, 25 July 1997

Legislation dealing with negotiation of fees with real estate agents

The State Government is introducing changes which will pave the way for a fairer and more equitable system for people doing business with real estate and business agents.

The new arrangements will enhance the capacity of Western Australians to fully negotiate charges and services with their agent.

Fair Trading Minister Doug Shave said the proposed legislation would also give greater protection to people using the services of real estate and business agents.

"Consumers and small business people will be able to obtain a refund if their agent does not behave fairly in negotiating a fee for service," Mr Shave said.

"Under the changes to the Real Estate and Business Agents Act, people will have access to an independent umpire if they consider that the fee charged is unfair."

Mr Shave said the changes would protect vulnerable consumers and businesses from unscrupulous traders.

"To make sure that this happens, the Real Estate and Business Agents' Supervisory Board will be given the power to order the full or partial refund of fees, where an agent has acted unjustly or improperly in negotiating or setting those fees," he said.

To ensure consumers obtained money due to them, the board would also be given increased enforcement powers. Furthermore, other amendments would give board officers power to negotiate settlements between agents and their clients.

"This will provide a quick, low-cost remedy for consumers and ensure that the board is not overburdened by fee disputes," Mr Shave said.

The protection measures will complement the Government's proposal to remove the cap on fees for real estate agents. Removing the cap will bring WA into line with all other States except Queensland, which is moving towards deregulation of fees.

Mr Shave said these initiatives would allow real estate agents to provide packages of services and fees which satisfied the differing needs and budgets of their customers.

"I believe this move will encourage agents to become more competitive and to offer their clients a greater choice of services," he said.

"For example, if people want to reduce their costs, they should be able to negotiate a 'no-frills' service for a budget price."

Mr Shave said to help people understand the changes, a comprehensive education campaign, which would be devised in consultation with industry and consumer groups, would be undertaken.

"These changes also fall into line with the National Competition Policy by removing barriers to individual negotiation for sales balanced with appropriate protection measures," he said.

The Minister emphasised that the recommendations were in line with the results of extensive consultation with industry, small business and the community. He indicated his appreciation to the groups and individuals who contributed their views in developing the changes.

Media contact:
Anabel Gomez
Tel: (08) 9222 9595