Delivering on the promise to ban vendor terms and rent-to-buy agreements from Victoria’s housing market
Over the years, our team has assisted a number of people who have been adversely affected by failed vendor finance and rent-to-buy deals, which are promoted as an opportunity to achieve home ownership for those who can’t afford it, but ultimately turn the ‘great Australian dream’ of homeownership into a nightmare. Consumer Action has seen no successful examples of these arrangements.
In our submission to Consumer Affairs Victoria (CAV) on Sale of Land (Exemption) Regulations 2020, Implementation Consultation, we strongly supported the Sale of Land Amendment Act 2019 that banned certain residential vendor terms and rent-to-buy agreements to ensure vulnerable home purchasers would be better protected from unfair exploitation in Victoria. This ban was a key recommendation from Consumer Action’s 2015 report, Fringe Dwellings: The vendor finance and rent-to-buy housing black market.
However, we consider that any exemptions to the ban should be very narrow in scope, to ensure the Amendment Act continues to provide effective protection to Victorians and its purpose is not undermined. We also suggest clarifying certain sections of the exemptions that appear to conflict with current regulation.
You can read the full submission here [PDF].
200128-Sale-of-Land-regulations-submission-to-CAV