The Real Estate Institute of Tasmania (REIT) today expressed its disappointment in Minister Nick
McKim not following through on his clear commitment to further consult with the organisation
over the Residential Property Transactions Bill 2013, prior to its debate in Parliament.
REIT President Adrian Kelly said that at a meeting with Minister McKim in April, he and other
industry representatives were promised the opportunity of further consultation, to ensure
concerns could be properly examined.
“Since that meeting there has been absolutely no communication from the Minister nor any
other member of Parliament,” Mr Kelly said.
“Now we find out, via a third party, that the Minister intends to bring the Bill on for debate in
Parliament tomorrow.
“This is extremely unfortunate as we took the Minister at his word and trusted that REIT’s
concerns surrounding the Bill would be further examined and addressed were needed. This
Minister has set a poor example indeed.”
The proposed Residential Property Transactions Bill 2013 will introduce many new measures
into property transactions in the State, including the provision of a standard set of disclosure
documents, cooling off periods for purchasers, stronger purchasers’ rights to rescind a contract
in relation to unapproved building works, as well as severe penalties for property sellers who
don’t comply with the new Bill.
Mr Kelly said the REIT has been calling for greater transparency for property purchasers for the
past decade.
“We have been very proactive in forcing Government to introduce mandatory smoke alarms
into all rental properties, as well as assisting in setting minimum standards for rental
properties,” he said.
“This new Bill will not solve any of the problems it is intended to. Instead it will make what is
currently a simple transactional process so full of red tape and convolution that even the most
experienced conveyancor or solicitor will find it difficult to follow.
“Instead this Government has decided not to listen to our concerns because we have ‘vested
interests’.
“This is unfair as our members have much more real life experience around intricate property
transactions than the bureaucrats that have drafted this Bill.
“Minister McKim has also even decided to completely ignore a petition which was signed by the
majority of all legal firms in this State opposing the Bill because it simply won’t work.
“Surely the Minister can’t honestly believe he knows more about a real estate transaction than
all lawyers and estate agents combined?
“REIT is also disappointed that the Government constantly talks about wanting to reduce red
tape, however now seems content to introduce another layer which will have no real benefit
apart from slowing down the entire process.”
Mr Kelly said many of the mainland states looked at our simple process of transacting property
with envy. Making that process more convoluted with red tape doesn’t help anyone.
“The Minister has chosen to ignore the advice of the REIT, Housing Industry Association,
Property Council, LGAT, local councils, the Master Builders Association and all legal practitioners
in this State and blindly proceed to ram a flawed Bill through Parliament because it is in the
interests of the consumer,” he said.
“I’m fully expecting Minister McKim to use words such as ‘consumer protection’, ‘looking after
purchasers’ and ‘ensuring that property sellers provide full disclosure’ but that’s just political
speak.
“The REIT will be encouraging all members to make contact with their Upper and Lower House
members in the hope that this flawed legislation is not simply rushed through Parliament.
“The losers will be those ordinary Tasmanians who wish to sell their family home, because under
this new Bill they can easily be duped by an unscrupulous purchaser. This Government is
forgetting that property sellers are also consumers who deserve some level of protection.
“Tasmania is just starting to see some signs of the property market improving and now the
Government wants to change that by introducing more untested red tape. I think they forget
that over one third of the government’s taxation income is derived from residential property.
“I used to take the Minister at his word, but not any more. For a person in public office to make
a promise and then not keep it is inexcusable.”
The REIT is a member organisation representing the views and the professional needs of its
members – these being more than 95 per cent of real estate agents (and their staff) throughout
the State.
REIT President Adrian Kelly
