PROMOTING INNOVATION IN THE PROPERTY INSPECTION REPORT MARKET

Prospective homebuyers in NSW will soon have greater access to discounted pre-purchase inspection reports, with reforms announced today by Minister for Innovation and Better Regulation Victor Dominello.

Mr Dominello said amendments to the Property Stock and Business Agents Regulation 2014 would help to reduce duplication of inspection reports, promoting peer-to-peer services that offer discounts to consumers.

The changes will require real estate agents, when listing a property, to disclose all inspection reports taken out by a vendor or potential buyer. Agents will need to provide buyers who take out a sales contract with the names of companies which have recently completed inspections of the property. The register will also need to indicate which firms enable peer-to-peer sharing discounts.

“Building and pest inspection reports can cost anywhere from $200-$600 each, which represents a significant outlay for potential buyers,” Mr Dominello said.

“This reform is a practical demonstration of the NSW Government’s commitment to embracing the collaborative economy. We want to encourage market disruptors whose business models rely on delivering better consumer experience and greater transparency, to flourish.

“This policy is the first of its kind in Australia and forms part of the NSW Government’s broader reform of the real estate sector.

“Having startups and disruptors compete in the property market and offer inspection reports is reflective of our 21st century economy. It also increases competition and reduces the price of these reports for potential buyers.”

Agents will be required to update their disclosures after each new report is completed. The new laws are due to come into effect before July.