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Investors and other property buyers are the ones that will suffer under proposed changes to auctioneer qualifications under National Licensing, according to a leading industry body.
The Real Estate Institute of Australia (REIA) has slammed the COAG proposed changes, claiming that it understates the auctioneer’s role at an auction and will cause confusion with buyers.
The proposal, that would require three units of qualification for auctioneers, is contrary to the minimum of 12 units that the REIA sees as necessary, said REIA president, Pamela Bennett.
“In many cases, auctioneers review the contract and disclosure statement prior to auction to ensure that any inclusions and exclusions are announced,” Ms Bennett said of the importance of auctioneers.
“They receive instructions from the vendor and if the property is not sold ‘under the hammer’, they may be involved in negotiations to facilitate a post-auction sale.”
Under the new changes, auctioneers would miss out on learning about minimising consumer and agency risk and interpreting legislation.
“In some states, auctioneers have the authority to sign the contract on behalf of the purchaser. These are important tasks, carrying high levels of responsibility and professionalism,” she said.
“It’s madness, the consumer would be at risk for minimal savings with the RIS stating that the expected average cost saving of COAG’s proposal would be around $74,000 per state/territory per annum.”
An auction is a public event for the sale of assets and property to the highest bidder among a group of buyers.