A substantial majority of real estate agent survey respondents believe deregulation will put downward pressure on residential commissions and a greater number oppose sellers being given rights to contest the fairness of commission in a tribunal even after a deal has been completed.
But the most striking statistic of all is that most prefer to maintain the status quo rather than remove the cap on commission rates.
|Max comm rate should go||43%||51%||6%|
|Downward pressure likely||72%||22%||6%|
|Agents income will increase||4%||85%||10%|
|Comms review by tribunal||12%||88%||0%|
The surveys were conducted in mid July, more than two weeks following minister Paul Lucas’ June 15 media statement.
It would be fair to assume that the trepidation over the change is linked to concerns about further disclosure procedures and tribunal review of the fairness of commissions discussed in our July post. Not to mention distrust of a government that has wreaked so much wanton havoc with and ham-fisted over-regulation.
If the change were simply the repeal of Regulation 1 (a) so that there is no longer any prescribed maximum, apprehensions would, I suspect, disappear.
Let’s hope the current parliamentary review brings about a sensible outcome.