Looking for Flat

Concerns have been raised with the State Government about how public auction laws apply in cyberspace.

Technology is racing ahead of outdated legislation, with vendors and agents in other states already using online negotiation systems, such as eBay and 2bid2.com.au, to auction property.

eBay has recorded 33 sales in its real-estate section this year and last month sold a Sydney apartment with harbour views for $1.49 million.

Another website based in Queensland has a dozen online auctions listed — its first sale was a Sunshine Coast flats that went under the electronic hammer for $890,000 — and is looking at expanding in Victoria.

A spokesperson for Consumer Affairs Minister Tony Robinson confirmed that the Government had directed Consumer Affairs Victoria to investigate the practice.

The Real Estate Institute of Victoria, which helped push for the review, says it is concerned that consumers have little or no protection when they conduct sales online.

“We asked the minister to consider that when auctions go online that the legislation is there to protect consumers and protect both parties in the transaction,” REIV chief executive Enzo Raimondo said.

“We want to make sure that all the safeguards and protections of the legislation that apply in physical auctions and the disclosure of notices and requirements agents make are transparent to the online environment.”

Cheers!