Footnotes

[1] Property Investment Advice Discussion Paper, Ministerial Council on Consumer Affairs Working Party, August 2004, p. 5. The Australian Consumers' Association listed a similar range of concerns – see Transcript of evidence, 15 April 2005, pp. 37 & 38.

[2] According to some estimates possibly as many as 100,000 consumers may have attended seminars run by spruikers during the height of the recent property boom in 2001-03. MCCA Discussion Paper, August 2004, p. 19.

[3] MCCA Discussion Paper, August 2004, p. 3.

[4] Ms Verhoeven, Transcript of evidence, 28 April 2005, p. 7.

[5] For example, The Investors Club, Submission 10, p. 2; The Australian College of Financial Services, Submission 2, p. 6.

[6] MCCA Discussion Paper, August 2004, p. 9.

[7] First Home Ownership, Productivity Commission Inquiry Report No. 28, March 2004, pp. 22 & 33. According to the Australian Taxation Office's Taxation Statistics in 2001-02 there were 10,280,299 taxpayers of whom 1,337,520 (13%) received rental income.

[8] REIA, Submission 4, p. 2.

[9] According to the Australian Bankers Association the number of housing loan products available to borrowers has more than doubled since 1996, with many new products designed specifically for property investors. MCCA Discussion Paper, August 2004, p. 10.

[10] See, for example, Griffith University, Submission 13.

[11] Mr Stevens, Transcript of evidence, 28 April 2005, p. 8.

[12] Mr Hopkins, Transcript of evidence, 13 April 2005, p. 6.

[13] Mr Graham, Transcript of evidence, 15 April 2005, p. 12.

[14] Two witnesses who operate as buyers agents appeared separately before the Committee on 13 April 2005, Mr John Hopkins and Mr John Allen. The REIA told the Committee that there are about 40,000 buyers agents operating in the USA today. Mr Stevens, Transcript of evidence, 28 April 2005, p. 13.

[15] Some buyers agents, such as Morell & Koren, do charge the purchaser directly.

[16] Mr Allen, Transcript of evidence, 13 April 2005, pp. 31-32 and 37-38.

[17] In contrast the Committee heard evidence from Mr R. Bobb, representing the Accounting Bodies, that in Hong Kong vendors and purchasers both pay real estate agents a standard 1%. Transcript of evidence, 29 April 2005 p. 30. Mr V Mangioni of UTS says that NSW legislation now prohibits an agent from acting for a buyer and seller of the same property, and recommends a similar provision be included in the Corporations Act. Submission 25, p. 1.

[18] Ms Verhoeven, Transcript of evidence, 28 April 2005, p. 14.

[19] Ms Wolthuizen, Transcript of evidence, 15 April 2005, p. 39. It should be noted, of course, that in most cases only the initial recruitment seminar is free.

[20] RECA, Submission 25, p. 4.

[21] ACFS, Submission 25, p. 67.

[22] ACFS, Submission 2, pp. 11 & 12.

[23] PIAA, Submission 5, and Transcript of evidence, 13 April 2005, pp. 1-19.

[24] APS, Submission 3, pp. 3 & 4.

[25] RECA, Submission 26, p. 66.

[26] The ASIC Act 2001 'mirrors' the TPA in relation to financial products.

[27] MCCA Discussion Paper, August 2004, pp. 29 & 30. Property Agents and Motor Dealers Act 2000 (Qld), Chapters 16 & 17.

[28] Griffith University, Submission 13, p. 6.

[29] The Corporations Act 2001, as amended by the Financial Services Reform Act 2001, took effect on 11 March 2004.

[30] MCCA Discussion Paper, August 2004, p. 31. Some submissions (e.g. 14 and 20) suggested that the reason real property is excluded from FSR is constitutional - the States and Territories control matters relating to real property.

[31] MCCA Discussion Paper, August 2004, p. 35.

[32] MCCA Discussion Paper, August 2004, p. 44.

[33] LIV, Submission 19, p. 4.

[34] RECA, Submission 26, pp. 2 and 4.

[35] REIA, Submission 4, p. 3.

[36] Mr Stevens, Transcript of evidence, 28 April 2005, p. 11.

[37] Griffith University, Submission 13, p. 2.

[38] NIA, Submission 14, p. 1.

[39] WPA, Submission 15, p. 5. The REIA made a similar point about resource constraints, Mr Stevens, transcript of evidence, 29 April 2005, p. 11.

[40] Transcript, 29 April 2005, pages 6 & 7.

[41] The MOU was signed on 15 December 2004. ASIC, Submission 21, p. 2.

[42] ACCC, Submission 16, p. 5.

[43] Mr Cassidy, Transcript of evidence, 29 April 2005, p. 11.

[44] Mr Samuel, Transcript of evidence, 29 April 2005, p. 12.

[45] ACCC, Submission 16, p. 17. In 2003 the ACCC was receiving 8 to 10 property-related complaints and enquiries per day. By early 2005 the average had dropped to 2 per day.

[46] ASIC, Submission 21, p. 1.

[47] Mr Allen, Transcript of evidence, 13 April 2005, p. 40.

[48] RECA, Submission 26, p. 2.

[49] Ms Wolthuizen, Transcript of evidence, 15 April 2005, p. 43.

[50] Griffith University, Submission 13, p. 2.

[51] LIV, Submission 19, p. 3.

[52] LIV, Submission 19, p. 8.

[53] Mr Anning, Transcript of evidence, 15 April 2005, p. 11.

[54] ASIC, Submission 21, p. 6.

[55] Mr Tanzer, Transcript of evidence, 15 April 2005, p. 23.

[56] Mr Funston, Transcript of evidence, 15 April 2005, p. 30.

[57] ACCC, Submission 16, p. 6.

[58] ACCC, Submission 16, p. 6. Also, transcript of evidence, 29 April 2004 pp. 10 – 12.

[59] PIAA, Submission 5, pp. 21–23.

[60] REIA, Submission 4, p. 9.

[61] LIV, Submission 19, p. 8.

[62] Mr Bobb, Transcript of evidence, 29 April 2005, p. 24.

[63] Ms Wolthuizen, Transcript of evidence, 15 April 2005, p. 39.

[64] Griffith University, Submission 13, p. 4.

[65] LIV, Submission 19, p. 8.

[66] LCA, Submission 12, p. 1.

[67] Mr Symon, Transcript of evidence, 13 April 2005, p. 18.

[68] PIAA, Submission 5, p. 23.

[69] Griffith University, Submission 13, p. 4.

[70] Mr Anning, Transcript of evidence, 15 April 2005, p. 11.

[71] Ms Wolthuizen, Transcript of evidence, 15 April 2005, p. 38.

[72] NIA, Submission 14, pp. 4 & 5.

[73] CLAA, Submission 24, p. 1.

[74] See, for example, Australian College of Financial Services, submission 2; Australian Property Systems, submission 3; Securities and Derivatives Industry Association, submission 7; Law Council of Australia, submission 12; Centre for Credit and Consumer Law, Griffith University, submission 13; Financial Planning Association of Australia, submission 18; and Ms Wolthuizen of the Australian Consumers' Association, transcript of evidence, 15 April 2005.

[75] REIA, Submission 4, p. 10.

[76] FPAA, Submission 18, p. 2.

[77] ASIC, Submission 21, p. 5.

[78] NIA, Submission 14, p. 3.

[79] Griffith University, Submission 13. p. 3.

[80] Mr Tham, Transcript of evidence, 13 April 2005, p. 22.

[81] For example, REIA, submission 4, p. 3; Griffith University, submission 13, p. 4.

[82] ACFS, Submission 2, p. 9.

[83] For example, REIA, submission 4, p. 3.

[84] Mr Allen, Transcript of evidence, 13 April 2005, pp. 29 & 42. The Law Institute of Victoria also advocates the mandatory provision of an independent valuation to purchasers, Submission 19, p. 9.

[85] WPA, Submission 15, pp. 5 - 8.

[86] Mirvac Real Estate, Submission 8, p. 1.

[87] JBA Finance Solutions, Submission 1, pp. 5 & 6.

[88] PIAA, Submission 5, p. 15.

[89] CPA/ICAA, Submission 23. The submission indicates that CPA Australia is currently undertaking research into the extent of this problem, with the results expected in late June 2005.

[90] Press release by the Parliamentary Secretary to the Treasurer, 2 May 2005, announcing a package of 25 proposed refinements to improve the operation of the FSR framework.

[91] ASIC, Submission 21, p. 7.

[92] Mr Tanzer, Transcript of evidence, 15 April 2005, p. 32.

[93] Mr Tham, Transcript of evidence, 13 April 2005, p. 21.

[94] REIA, Submission 4, p. 8.

[95] MCCA Discussion Paper, August 2004, p. 37.

[96] NCUA, Submission 9, pp. 4 & 5.

[97] Mr Bobb, Transcript of evidence, 29 April 2005, p. 24.

[98] REIA, Submission 4, p. 1.

[99] The Investors Club, Submission 10, pp. 1 & 3.

[100] NCUA, Submission 9, p. 3.

[101] PIAA, Submission 5, p. 20.

[102] Mr Clark, Transcript of evidence, 15 April 2005, pp. 3 & 5.

[103] 'ASIC Completes Review of Real Estate Agents', ASIC Media Release, 14 February 2000, page 2 of Summary.

[104] 'ASIC Completes Review of Real Estate Agents', ASIC Media Release, 14 February 2000, pages 1 & 2. See also ASIC, Submission 21, p. 4.

[105] Mr Tanzer, Transcript of evidence, 15 April 2005, p. 27.

[106] For example, The Investors Club commented that in recent times off-the-plan sales had increased to about 50% of total sales. Mr Allen, Transcript of evidence, 13 April 2005, p. 33.

[107] ACFS, Submission 2, p. 3.

[108] Mr Tanzer, Transcript of evidence, 15 April 2005, p. 32.

[109] Mr Tanzer, Transcript of evidence, 15 April 2005, pp. 32 - 33.

[110] Mr Bobb, Transcript of evidence, 29 April 2005, p. 23.

[111] REIA, Submission 4, p. 6.

[112] NIA, Submission 14, p. 4.

[113] LIV, Submission 19, pp. 8 & 9.

[114] See also the discussion on remedies in the public hearing, transcript of evidence, 29 April 2005, pp. 9 – 11.

[115] ACCC, Submission 16, p. 24

[116] ACCC, Submission 16, pages 7 & 21-23.

[117] ACCC, Submission 56 to the Review of the Competition Provisions of the Trade Practices Act (the "Dawson Review"), p. 95.

[118] PIAA, Submission 5, p. 10.

[119] Mr Hopkins, Transcript of evidence, 13 April 2005, p. 6.

[120] The Investors Club, Submission 10, p. 1.

[121] Mr Graham, Transcript of evidence, 15 April 2005, p. 21.

[122] Mr Tanzer, Transcript of evidence, 15 April 2005, p. 24.

[123] Messrs Funston and Tanzer, Transcript of evidence, 15 April 2005, p. 29.

[124] Ms Wolthuizen, Transcript of evidence, 15 April 2005, p. 46.

[125] Ms Wolthuizen, Transcript of evidence, 15 April 2005, p. 39.

[126] LIV, Submission 19, p. 3.

[127] Levings v Forbes & Wallace Inc 8 Mass.App.Ct 498, 396 N.E.2d 149, quoted in Senate Economics References Committee (2004) The Effectiveness of the Trade Practices Act 1974 in Protecting Small Business, p.35.

[128] REIA, Submission 4, p. 9.