COMPLAINTS

The Business Licensing Authority deals with disputes between agents and their clients or purchasers. The Authority provides advice and handles consumer complaints. The service is free. If the Authority believes that the agent has breached the Estate Agents Act 1980 (Vic) ("Estate Agents Act") or its regulations, including the professional rules, it can refer the matter to the Disciplinary Tribunal, which will consider whether the agent should continue to hold a licence or whether the licence should be suspended or cancelled. It can also require undertakings from an agent or impose a fine.

You can appear without a lawyer, although most people are represented. The Tribunal cannot order that you be reimbursed for a loss caused by unprofessional behaviour of an agent, but can order compensation if the complaint concerned took excessive commission.

Complaints against lawyers were previously handled by the Legal Practice Board and the Legal Ombudsman. Under the new Legal Profession Act 2004 (Vic), which commenced in 2005, the legal profession is regulated by a Legal Commissioner. The new Act has replaced the Legal Practice Board with the Legal Services Board and has abolished the office of Legal Ombudsman.

The contract of sale is a short document, but they incorporate statutory conditions which apply when there is a dispute between the parties. These conditions are contained in Table A in the Seventh Schedule of the Transfer of Land Act 1958 (Vic). Disputes about contracts are settled by the courts according to the conditions and terms of the contract.

There are alternatives to litigation in the courts. The Law Institute provides a Conveyancing Disputes Panel, which determines disputes between lawyers (typically, a lawyer for a vendor and a lawyer for a buyer) about conveyancing law practice. The service costs $100 (plus GST). It is a very efficient mechanism for resolving conveyancing disputes and does not require appearances by the parties or representatives.

Arbitration of disputes about measurements: A dispute about measurements of the land is governed by the terms of the contract. If the contract is silent, the statutory conditions apply, under which a dispute about measurements goes to arbitration. An arbitration can be as expensive as a court action.

Mediation: Many contracts contain a clause that enables the parties to any dispute to take the dispute to a mediator. Even if the contract says nothing, parties can still take their dispute to a mediator. The Law Institute of Victoria gives advice about who is a qualified mediator and the standard charges, or the parties can choose their own mediator from the ranks of professional mediators. In a mediation each party decides whether the outcome is suitable, and the process can bring about a cheap and timely resolution of a dispute without expensive litigation.

Information on options for alternative dispute resolution can be obtained by telephoning the Law Institute of Victoria on 9607 9311, or go the website at: www.liv.com.au.

For more information on this subject refer to The Law Handbook chapter 14.1.