Legislation passed to cut costs for WA real estate industry

The Parliament of Western Australia has passed the Residential Tenancies Amendment Bill 2015 and the Licensing Provisions Bill 2015, with amendments being made to the Residential Tenancies Act, the Real Estate and Business Agents Act, and the Auction Sales Act.

This is a result of initiatives put forward by the Real Estate Institute of Western Australia (REIWA), who has been advocating for these major changes which will create direct savings for the real estate industry.

REIWA chief executive officer Neville Pozzi said the amendments will not only result in a reduction in administrative burden and cost savings for tenants, lessors and real estate agents, but also increase efficiencies that are expected to contribute towards keeping downward pressure on rental costs for tenants.

“REIWA commends the Barnett Government, the Minister for Commerce and the Opposition for passing the bills, which will reduce compliance costs, save the industry money and make it easier to conduct real estate business in WA,” he said.

The proposed amendments will include changes to the following:

Residential Tenancies Act changes:

• Will simplify the process when a lessor is required to issue a notice of proposed entry to the tenant;
• Will enable the service of notices and documents under the act by electronic means
• Will remove the requirement for notices of abandoned goods to be advertised in a newspaper circulating throughout the state.

Real Estate and Business Agents Act changes:

• Will remove the prohibition on real estate agents from receiving commission prior to settlement from an off the plan strata sales transaction (as defined by the act).

Auction Sales Act changes:

• Will allow auction licensing renewals to align with other industry license renewal periods, up to three years.

Once both bills receive royal assent, are proclaimed and gazetted as acts in the coming weeks, businesses operating within the real estate industry can start implementing these changes into their practices.