Petition to ban kickbacks tops 1,260 signatures
The practice of conveyancers handing up to $500 kick-back payments to real estate to land work is wrong and “unethical”, says the Victorian AIC president. And she has 1,260 petition signatures to back up as a case to regulators to ban it.
A conveyancers’ petition to get real estate agent kickbacks outlawed has more than 1,260 signatures.
The Change.org petition calls on the Victorian government to address the question of unethical kickbacks, referral fees and underhand incentives.
That it has been getting 10 new sign-ups a day shows the government needs to ban the practice as part of an overhaul of the 2006 Conveyancing Act, AIC VIC President Shakila Maclean says.
“With over 1,260 signatures already, the message is clear: Victorian practitioners want a fairer, more transparent property industry,” said Shakila, who praised the backing of committee colleagues and backers.
“Your support is helping shine a spotlight on the widespread and unregulated practice of agent referral kickbacks in property transactions.
“These secret payments distort consumer choice and compromise the independence of conveyancers.
“They are often hidden from clients, creating conflicts of interest that put profits ahead of people.
Fees that often reach up to $500 per file have become an undeclared source of income for the recipients, fuelling an unethical and most often undisclosed financial relationship between parties, added Shakila.
“In some cases, these payments are made in cash ‘under-the-counter’ with no questions asked, creating a culture of secrecy and bypassing legal, financial and ethical obligations.
“The impact on consumers is severe.
“Clients are frequently coerced into using “preferred” conveyancers without full disclosure of the financial arrangements, and in many cases, the fees are not disclosed to the clients at all, turning these payments into “secret commissions.”
“The secrecy surrounding these transactions not only violates laws but also compromises the independence and quality of legal and financial advice provided to consumers.
“Additionally, this practice harms fair trade in the industry, with clients being directed away from firms that do not pay for referrals, leaving them unable to compete with businesses that do pay.”
The AIC has been calling on regulators for the ban since 2023, highlighting that it has fostered a race-to-the bottom mentality that ultimately means consumers are losing out.
It wants legislative reform to:
- Prohibit referral payments between agents and conveyancers or legal practitioners
- Mandate clear disclosure of any non-cash relationship influencing a referral
- Protect consumers from being steered toward service providers based on commissions, not quality
“Let’s restore transparency, trust, and professionalism to the industry,” All Hours Conveyancing owner operator Shakila said, urging more people to sign the petition.
“Kickbacks have no place in conveyancing.”
Full details of the Change.org petition can be found here.
