by Peter Mericka B.A., LL.B
Real Estate Lawyer
Qualified Practising Conveyancer Victoria
Director Lawyers Real Estate Pty Ltd
The Real Estate Institute of Victoria (REIV) has been forced to come clean, and to admit to consumers that “…no binding contract exists until the successful bidder and the vendor have signed a contract.” A proposed addition to the legislation governing the conduct of real estate auctions represents one more nail in the auction coffin.
In his weekly propaganda piece in the Domain section of The Age newspaper (Domain, The Age Saturday 9 February, 2008 p.3) CEO of the Real Estate Institute of Victoria, Enzo Raimondo, acknowledges the “…need to amend the law to ensure that when a property is knocked down to the highest bidder a binding contract exists and they cannot be gazumped by another bidder making a late bid.”
However, the move from the falsity of the current real estate auction, to the instantly binding verbal contract, is fraught with problems. Such a move represents one more nail in the coffin of the real estate auction.