The Andrews Labor Government will deliver protection for tenants of commercial properties in Victoria by repealing sections of the Estate Agents Exemption Regulations 2014.
The Labor Government has acted to stop the regulations, which would have driven down standards by shutting out licensed estate agents from certain commercial property sales and leasing.
Minister for Consumer Affairs, Jane Garrett, said estate agents offered important protections for buyers or tenants in commercial property transactions, such as professional conduct standards, proper training, and strict security requirements when holding money in trust accounts.
These common sense measures will protect tenants and buyers who may lack the necessary negotiating skills when entering into these arrangements.
The decision follows a review by ACIL Allen Consulting which included consultation with industry stakeholders.
The sections of the Estate Agents Exemption Regulations 2014 that will be repealed would have shut licensed estate agents out of sales of $15 million or more, or where the floor area was greater than 10,000 square metres.
The exemptions for leasing would have applied where landlords owned property of these amounts.
Quotes attributable to Minister for Consumer Affairs, Jane Garrett
“The Liberals rushed in changes to regulations which would have driven down standards in the commercial property industry and put tenants at an unfair disadvantage in property negotiations.”
“By revoking these regulations, we will give greater protection to buyers and tenants who often don’t have the resources to deal directly with landlords and owners of large commercial properties.”