Valuers

44.88 Valuers assess the value of properties, including residential, commercial, industrial and retail properties. They may be engaged by private parties, corporations, financial institutions, or government departments and authorities. Private sector valuers are required to comply with the NPPs. Some state and territory legislation also regulates the handling of personal information by valuers.^[112]

44.89 In its submissions to this Inquiry, the Real Estate Institute of Australia (REIA) proposed an exemption for valuers under the Privacy Act.^[113] In its view, there is an overwhelming public need for accurate, up-to-date and reliable property information for the purposes of making appraisals and preparing valuation reports. It submitted that the ability of valuers to collect up-to-date and reliable personal and property information has been diminished by the Privacy Act.^[114] The REIA stated that this

lessens the quality and accuracy of their professional advice to financiers, businesses and consumers, which in turn places them at risk. These risks can be measured in terms of increased financial burdens, uncertainty in property values and investment potential, and flawed land tax and stamp duty assessments. Valuers will also be the subject of increasing litigation.^[115]

44.90 There was little comment on this issue from other stakeholders. The ABA commented that ‘a valuer is better able to determine whether a purchase has been the victim of a two tier marketing scheme or whether the transactions is at “arms length” for valuation purposes if the name and address of the purchaser is known’.^[116] Other stakeholders submitted that they would oppose an exemption or exceptions for valuers.^[117]

44.91 The REIA suggested that there already is sufficient protection for consumers under state legislation, such as the Valuers Registration Act 1975 (NSW), to ensure that information in the hands of valuers is protected. ^[118]

ALRC’s view

44.92 Individuals may reasonably expect that certain personal information collected by real estate agents in the course of selling a property—including the address of the property and the sale price—will be disclosed for valuation purposes. Individual vendors or purchasers, however, may not reasonably expect a real estate agent to disclose personal information, such as their names, to valuers.^[119]

44.93 Assuming that the disclosure of the name of the vendor and purchaser (if individuals) would not reasonably be expected by them, the property industry could develop mechanisms to make known the relevant factors. This could involve, for example, a form that is filled out by an agent after a settlement is completed that sets out the principal characteristics of the sale, such as mortgagee sale, deceased estate, owner/occupier, investor, and so on.^[120]

44.94 There is no compelling reason for an exemption or exception from Privacy Act obligations in relation to personal information disclosed to valuers by real estate agents, or more generally. There is adequate latitude for valuers to obtain information under the existing ‘Use and Disclosure’ principle and the model Unified Privacy Principles recommended in this Report. That is, disclosure is permitted for a related secondary purpose where the individual would reasonably expect such disclosure, or with the consent of the individual. Personal information required by valuers may also be obtained from land titles offices.