By Tom BrownThis article was produced by the Australian Institute of Real Estate Law and was originally published on the Institute’s website.
The Real Estate Institute of Australia has issued an alert about the potential impact of the federal government’s proposed changes to the estate planning regime.
In a statement, the institute’s chief executive, David Kavanagh, said the proposed changes would allow property developers to “unilaterally decide whether or not to purchase a property, without any consideration given to the interests of the owner”.
He said the changes were intended to increase the power of property developers “to take control of a property” without the involvement of the landowner or any other interested party.
“This would make it easier for developers to make a determination about whether or no it is necessary to purchase the property, and could be seen as a potential way of ensuring that the owner’s interests are not taken into account,” Mr Kavanaugh said.
“The proposed changes, however, could lead to the end of the ‘fair market value’ test, which requires that a property be bought at a fair price for its fair market value.”
Mr Kavanigh said the change could be a “huge setback” for “all Australian real estate buyers” and could make it harder for Australians to buy a property.
“I am very concerned about the proposed change to the law relating to the fair market values test,” he said.
Mr Kavagh said the law currently “is not intended to be used to ensure the fair price is met” and it was “quite a new concept” to the industry.
“We are going to have to have a new, clearer, and more sophisticated approach in the next five years or so, which will allow property owners to exercise more control over their property,” he told the ABC.
Mr Bowers has already been hit with a $20,000 court order over the use of a home he bought in 2010 and a $40,000 civil judgment in the High Court over his decision to sell his property in 2017.
“There’s a real possibility of that going to court in the Federal Court and I would expect to have some kind of outcome there,” Mr Bowers said.
He said his legal team was also working to determine if his $200,000 mortgage payment from the previous year was eligible for a lump sum payment, and if he would be entitled to the lump sum.
“That will be the first thing I will look at,” he added.
Topics:real-estate,law-crime-and-justice,courts-and_trials,law,australiaFirst posted May 16, 2020 17:56:00Contact Josh HainesMore stories from New South Wales