Reserve prices to go public in Victoria property shake-up

If passed, the new laws will apply from 1 October, requiring sellers and agents to publish a reserve price at least seven days before any auction or sale, with the final sale price to also be made public.

If they don’t publish the reserve prices, they won’t be able to proceed with the auction or sale.

Under the state laws, agents caught underquoting already face fines of more than $48,000 and risk losing their commission, with the government warning they’ll now have nowhere to hide.

Victorian Minister for Consumer Affairs and Renters, Paul Edbrooke, said the laws were created in Labor’s bid to stamp out underquoting.

“These new laws mean no more wasting your Saturday at auctions trying to buy a home that you could never afford,” he said.

Additionally, the new legislation will also include rental reforms, capping the cost of breaking a lease to a maximum of four weeks’ rent.

Under current rules, landlords can claim compensation from renters who end a lease early, including a reletting fee, reasonable advertising costs, and rent costs, depending on how long the lease is and how long is left.

Further changes will include guaranteeing renters the right to additional keys or fobs, and allowing them to pay their bond online directly to the Residential Tenancies Bond Authority.

Edbrooke said the reforms were practical changes to protect renters and homebuyers, making a real difference to Victorians’ lives.

“No one should be trapped in a lease they can’t afford to leave – so we’re capping the cost of getting out,” he said.

"If you’re paying rent, you’re entitled to your own set of keys – it’s that simple,” he concluded.