www.consumer.vic.gov.au (Consumer Affairs Victoria )

As reported in the second quarter issue of Client News, new legislation is due to streamline the property market by replacing Victoria ’s 65,000 bodies corporate with owners corporations (OCs). The Owners Corporation Act 2006 (Vic) is due to come into operation in January 2008 and the Consumer Affairs Victoria (CAV) website features a “Bodies Corporate Factsheet” that explains the changes ahead. The Factsheet clearly defines the powers and functions of OCs, as well as record-keeping obligations, financial accountability, and the new three-tiered approach to dispute resolution involving internal mediation, CAV intervention and referral to the Victorian Civil Administrative Tribunal. It also explains the limitations imposed on the developer’s role in the OC and the registration requirements for paid managers. The enhanced regulations affect one in five Victorians who own, live in, manage or develop flats and apartments so the Factsheet will be a useful tool for this new phase in Victoria’s thriving property market.

Also featuring on the CAV website are guidelines on unfair terms in consumer contracts, which aim to simplify the provisions of the Fair Trading Act 1999 (Vic) (the FTA) to give businesses and consumers a better understanding of their contractual obligations and legal rights. It is a timely publication, as the property market is inundated with a proliferation of financial-lending products targeted at low-income earners. Future consultation with regulators, industry and consumer groups will assist CAV develop final guidelines by mid-2008, which may affect further legislative change.

www.consumeraction.org.au (Consumer Action Law Centre)

The latest census figures from the Australian Bureau of Statistics (ABS) reveal an alarming increase in the number of families struggling to meet mortgage and rental commitments. While the government’s First Home Owner Grant has helped, it is the non-traditional lending products that are causing the greatest concern. Vendor terms contracts are just one example. They are high-risk and subject to little regulation, so it is worthwhile visiting the Consumer Action Law Centre website to view its recently-released research report: Vendor Terms – Rhetoric & Reality. The report makes a number of astute recommendations for law reform and changes to the existing consumer credit code to better protect consumers. n