Real estate deals with land and land fixtures. In the Australian economy, the real estate industry has contributed massively to the growth of the nation by providing millions of citizens with jobs, housing, and investment opportunities.
To preserve the safety of the real estate industry, the Australian Government has implemented certain regulations to keep the interests of active shareholders and foreign investors at hand.
Navigating the intricate nature of the real estate industry without guidance is quite risky. One may become prey to misleading claims and fraudulent shams.
In this guide, we’ll highlight and discuss the real estate regulations in the Australian capital territory.
Real estate regulations in Australia
Real estate laws in Australia vary from state to state. Generally speaking, all states and territories have specific regulations that govern all transactions made on residential and commercial properties.
These transactions involve agreements, auctions, cooling-off periods, and conveyancing.
The most important regulation in the real estate industry is the prerequisite for registration. Every real estate agent, either commercial real estate or residential real estate must register under their local government area or territory. Additionally, real estate agents require licensing.
This assures the buyers that the agents are adequately trained and are qualified to be involved in the property industry.
Moreover, agents must also have the authorization to transact and operate in that state. They must be knowledgeable about the state regulations and the code of conduct provided by their state.
Furthermore, real estate agents must also undergo and complete an ongoing professional development scheme to maintain their licences.
These efforts are generated to ensure fair and equal treatment between buyers and sellers. For foreigners, the Foreign Investment Review Board approves the acquisition of land by foreign investors and foreign interests in Australia.
In addition, most real estate regulations were enacted in the early 20th century. During this time, the authorities introduced the first licensing and education specifics.
Now, these regulations have significantly evolved to consolidate the dynamic change in the real estate industry.
For example, the enactment of the National Consumer Protection Framework 2010. This regulation aimed at improving consumer rights protection and market equanimity.
Australian property acts
In Australia, two main parts of the legislation exist, amongst other NSW acts, that oversee and govern the Australian property industry.
- The Real property act (RPA)
- The Conveyancing Act (CA)
Enacted by the Minister for Customer Service and Digital Government, the Real Property Act dictates the transfer of land to due ownership after sale.
The Real Property Act mainly deals with the transfer of ownership and land titles after release of funds and payment of land tax.
The Conveyancing Act oversees the legal processes and methods followed after purchase of a property in the real estate industry.
Note that federal laws in each state differ. Also, each state and territory has specific laws and regulations that govern real estate transactions, dealings, and sales.
When purchasing residential land in a state, you need to know the property law that governs the market value in that state.
This is very important for successful real estate dealings. Furthermore, all real estate agents must adhere to these laws and the real estate’s code of conduct.
Registration system in Australia
In Australia, four main processes of land and title licensing under the Land Titles Registry exist. They are;
- Old System Title.
- Torrens Title
- Crown Land Title
- Native Title
- Old system title
This is one of the oldest registration systems. It was put into effect before the Torrens Title System and is also called Common Law Title. It solely deals with the documentation and tracing of the ownership of a property or land to the root of the title.
- Torrens title
The Torrens Title system has the most registered commercial and residential properties in Australia. This system gives preference to the registered owner of a property.
It is also a guaranteed system that favours the owner of an interest in a property over formerly registered interests.
These interests include freehold titles, mortgages, restrictive covenants, and leasehold titles.
- Crown land title
This system governs the control of the use of resourceful and vacant land or property.
