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Agents in New South Wales will face a raft of new educational requirements, increased fraud prevention measures and greater scrutiny after the government released its reform paper, which aims to “strengthen industry standards and better protect consumers”.
The NSW government over the weekend released its Real Estate and Property Services Industry Reform Paper which has a strong focus on raising training standards, increasing transparency and accountability, and strengthening trust account processes.
Key reforms include:
- Increasing the certificate of registration qualification from the current four units of competency to seven units;
- A mandatory practical experience component for certificate holders and licensees;
- The creation of a new licence category of ‘licensee in-charge’. These agents will be required to oversee trust accounts, properly supervise agents and ensure the agency remains compliant with the law. Applicants will need two years’ practical experience and the completion of a diploma-level of qualification;
- New fraud prevention measures which will require agents to transfer rental income out of trust accounts at the end of each month; and
- Giving NSW Fair Trading greater investigative powers to tackle rogue agents.
Minister for Innovation and Better Regulation Victor Dominello said consumers needed greater protections and these proposed new laws would be a significant change.
“Purchasing or selling a property is often a life-changing decision and consumers need certainty that suitably qualified agents are managing this process,” Mr Dominello said.
“This is the most significant review in 20 years and the profile of the property sector has changed considerably over that period. We need modern laws that reflect these changes and improve consumer confidence.”
REINSW president John Cunningham said the reforms were a giant step forward for the profession. He said the institute had been lobbying the government to take action for some time.
“For too long, people have been able to enter the profession with a minimum level of education that is totally inadequate for the important role real estate professionals play in people’s lives,” Mr Cunningham said.
The reforms follow extensive public consultation and collaboration with industry stakeholders, the minister’s department said. The paper is available for feedback here, with submissions closing 5 December.
Mr Cunningham said the REINSW will be making a submission of support for all the reforms.
“We encourage the public and other industry bodies to get behind these reforms which will undoubtedly help improve what is the most significant industry in the NSW economy.”
Legislation to implement the reforms is expected to be introduced to parliament in the first half of 2017.
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