Navigating the complexities of the Perth real estate market can be challenging, whether you’re a seasoned investor, a first-time buyer, a renter, or a landlord. That’s why REIWA’s free Information Service is such a valuable resource, assisting nearly 14,500 people in 2024 with their WA real estate queries.

Rental Market Queries Dominate

Given the significant changes and ongoing pressures in the rental market last year, it’s no surprise that two-thirds of the inquiries received by REIWA related to rental properties. These included questions about:

• Lease Agreements: Understanding the terms and obligations of both fixed-term and periodic leases.
• Maintenance Issues: Clarifying responsibilities for repairs and upkeep.
• Bond Returns: Navigating the process of getting bond money back at the end of a tenancy.
• New Tenancy Legislation: Over 700 calls were specifically related to the Residential Tenancies Amendment Act.

Sales Queries: Contracts and the Selling Process

Sales-related inquiries made up nearly 25% of the total, with a significant portion focusing on contracts. Other common topics included:

• Listing Agreements: Understanding the terms and obligations when engaging an agent to sell a property.
• Disclosure: Knowing what information sellers are required to disclose to potential buyers.
• Settlement Process: Navigating the steps involved in finalizing a property sale.

Top 5 Questions Answered by REIWA’s Information Service

Let’s delve into some of the most common questions received by the Information Service team, along with their expert answers:

1. Subject-to-Sale Contracts and the 48-Hour Clause: What Does it Mean?

With the Perth market experiencing rapid sales (median time to sell was just 15 days in December), subject-to-sale contracts have become more prevalent. These agreements allow a seller to continue marketing their property and potentially accept another offer if the original buyer hasn’t met certain conditions (e.g. selling their own home) within a specified timeframe. The 48-hour clause allows a seller who receives a second offer to give the first buyer two business days’ notice to proceed or withdraw their contract.

2. Multiple Offers: How Does an Agent Handle Them?

In a competitive market, multiple offers on a property are common. An agent, acting in the seller’s best interests, can inform prospective buyers that other offers exist without disclosing the specific terms (unless otherwise agreed). Buyers are often advised to submit their best offer upfront. Sellers are under no obligation to negotiate with any particular buyer or provide an opportunity to revise their offers.

3. Breaking a Lease: What are My Obligations?

A Residential Tenancy Agreement is a legally binding contract. If you’re on a fixed-term lease, there’s no automatic right to terminate. You’ll need the owner’s permission (via your property manager). Typically, owners will agree to a termination once a replacement tenant is found. You’re liable for rent until a new tenant is secured. For periodic leases, you simply need to provide 21 days’ written notice to your property manager or landlord.

4. Bond Returns: How Long Does it Take?

There’s no set timeframe for bond returns in WA. Bond money is held by the Government Bond Administrator, not the owner or agent. After the final inspection, there might be some back-and-forth regarding any claims for damages or cleaning. Once these are settled, the bond is usually refunded within weeks. Open communication with your property manager or landlord is key. If there are unreasonable delays, contact DEMIRS directly.

5. Rent Increases: How Often Can They Occur?

Under the Residential Tenancies Amendment Act, rent can only be increased once every 12 months.

Your Trusted Source for Real Estate Information

REIWA’s Information Service is a valuable resource for anyone involved in the Perth real estate market. Whether you have a simple question or need clarification on a complex issue, their team is there to help.

As your local real estate experts, we’re also committed to providing you with the information and guidance you need. We encourage you to reach out to us with any questions you may have about buying, selling, renting, or investing in Perth. We’re here to help you navigate the market with confidence.