Property Inspections - Important Update
Date: 13 Apr 20
The REIV is pleased to advise that the Consumer Affairs Victoria website has been updated to reflect what we have always believed to be the correct interpretation of the Stay at Home Directions (No 4) and Restricted Activities Directions (No 3).
NOTE: These Directions will be amended and/or extended today for another fortnight (at least). The REIV will provide any further advice should there be substantial change to either Direction.
The CAV website now states the following:
Inspections for lease and sale
Clause 11(3)(c) of the Stay at Home Direction (SAHD) allows a person to permit another person to enter their place of residence if it is necessary for the second person to enter the premises for the purpose of their work. Therefore, a person may permit an estate agent to enter the person’s place of residence to allow the estate agent to undertake their work related to the place of residence.
REIV Note: This enables people, not just estate agents, to enter properties to do their work. It can apply to to appraisals, valuations, pest/termite and building inspections and any repair work.
Clause 11(3)(d) of the SAHD also allows a person to permit another person to enter their place of residence if the second person is entering for the purposes of attending a private inspection of the premises for the purposes of a prospective sale or rental of the property.
REIV Note: This applies to Estate Agents, Agent's Representatives, Buyer and Vendor advocates, Property Managers and prospective tenants or purchasers.
Inspections of occupied properties
Private inspections of an occupied/tenanted residential property are permitted to be organised. An inspection is only permitted where an estate agent and one other person (the person for whom the inspection is organised by private appointment) are present at the premises.
REIV Note: This means only two people in the property at any given time.
An inspection where an estate agent, the prospective tenant/purchaser and a resident of the premises are all present is not permitted. In this case the resident of the premises will have to leave the premises, and should do so for a reason permitted under the SAHD, namely, to obtain necessary goods or services, for care and other compassionate reasons, to attend work or education or to exercise.
REIV Note: Agents must coordinate the private inspection with the occupier/tenant leaving the premises for a legitimate reason (one of the four listed) – not just to facilitate the inspection. For example they might go and do some exercise or do their grocery shopping. This is vitally important because they could be fined if they are just wandering around without a legitimate purpose.
Those in isolation or quarantine should not leave their homes.
REIV Note: You also need to ensure that the person doing the inspection is not unwell or have any symptoms of Coronavirus. You should note that you have asked this question and where possible record this in writing to protect yourself.
In order to acheive this outcome for the real estate sector, the REIV has agreed on behalf of Members that should a tenant not want a private inspection to occur in a property they currently occupy, Members will respect their wishes. It is vital that we act with compassion and understanding in these circumstances.
The changes to the RTA will prescribe compensation for inspections of a minimum of $30 or a half-day’s rent (whichever is the greater); tenants may be motivated to allow an inspection if you consider this option ahead of it being prescribed.
Inspections of vacant properties
Private inspections of a vacant residential property are permitted to be organised. An inspection is only permitted where an estate agent and one other person (the person for whom the inspection is organised by private appointment) are present at the premises.
REIV Note: This allows one and one inspections only – maximum of two people in the property.
Inspections of tenanted properties
Inspections by vendors or landlords
A vendor or a landlord wanting to enter a property to inspect it is permitted to do so if they have served a valid notice to enter the premises under the Residential Tenancies Act 1997.
Inspections by estate agents
An estate agent is permitted to enter residential premises to exercise lawful duties as part of the exercise of their occupation, including to inspect a property on behalf of a landlord or vendor.
Restrictions on indoor gatherings do not apply to an estate agent entering an indoor space where it is necessary to enter a property in the exercise of their occupation. Accordingly, an estate agent may enter premises to conduct an inspection on behalf of a landlord or vendor irrespective of the number of residents of the property present at the time.
REIV Note: This enables the Estate Agent to do their work and also applies to valuations, settlement inspections, termite and building inspections for sale purposes.
Estate agents, vendors or landlords conducting any inspection should ensure compliance and high levels of hygiene. See the Department of Health and Human Services (DHHS) information on appropriate cleaning and disinfecting.
There are clear and simple guidelines found here . Your practical considerations should include:
- the use of gloves and masks and hand-sanitizer during the conduct of these inspections
- Close supervision the person doing the inspection
- Consider opening doors and cabinets for them rather than them doing it themselves. Alternatively, arrive a bit earlier and open the doors ahead of the inspection.
- Note any area the person doing the inspection touches and clean and disinfect prior to leaving and before the occupant returns.
More activities may be restricted as the coronavirus (COVID-19) progresses. Estate agents should monitor the DHHS website for up-to-date information.