The Victorian government is proposing to remove the requirement for the sale or leasing of large commercial properties to be carried out by a licensed real estate agent.
The reforms will apply to properties that have sale contract prices of over $15 million, or are larger than 10,000 square metres in gross floor area, or where each party to the sale owns real estate with a market value of more than $15 million dollars or GFA of over 10,000 sq m.
Also, under the proposed reforms, anyone involved in the leasing of commercial property in Victoria will no longer need an estate agent’s licence where the company owns property with a total market value of at least $15 million; or a total floor space of at least 10,000 sq m.
“The exemptions are strictly limited to large commercial property transactions, including those between related companies. People should still strongly consider engaging an estate agent for these types of property transactions. The reforms merely give those businesses that regularly sell or lease large commercial property the option of using an estate agent or conducting the transaction between themselves,” Victorian minister for consumer affairs Heidi Victoria said.
The government is proposing the reforms come into effect on 1 July 2015, and Consumer Affairs Victoria will carry out a public information campaign to promote the value of sellers using a licensed estate agent.
The Napthine Government is asserting the reforms will “save Victorian businesses an estimated $2.6 million every year and contribute to the more than $715 million in red tape savings to Victorian businesses and the economy,” deputy premier Peter Ryan said in a media statement.