NSW government authority set to overhaul real estate

21 Aug 2015
EAC
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Real Estate and Property division, a new division of NSW Fair Trading, will take responsibility for all real estate and property functions, including industry regulation.

“The real estate industry is integral to our state’s economic prosperity, with the sale and rental of property impacting on millions of NSW citizens each year,” Mr Dominello said, Minister in charge of NSW Fair Trading.

“This new division will facilitate relationships between government and industry and provide for licensing that better balances industry needs with consumer protection.”

The division will do this by conducting random audits to ensure compliance on all real estate matters, including trust account management, underquoting and licencing.

Is the real estate industry already over regulated?  Let us know your thoughts in the comments below. 

The government is making available new resources, including an online rental bond system, forms accessible via mobile devices and a user-friendly tool kit for property professionals

NSW Minister for Innovation and Better Regulation Victor Dominello said the division would benefit the entire industry.

The new division will be headed by NSW Fair Trading assistant commissioner Andrew Gavrielatos, who will also be responsible for establishing a Real Estate Qualifications Review Committee.

These changes have been made in the wake of a recent meeting the Minister had with Dale Whittaker (EAC Chairman), David Crombie (EAC CEO) & Geoff Hunter (EAC Industry Liaison) to discuss a number of topics, including Underquoting, Education standards, and Asbestos.

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2 Comments

  • We need to establish that the person doing the exam, is the person who applied to train & qualify &…

    Qualifications needs to return to the 2 years minimum practical experience as it was!

    Separate units for the Licensee in Charge qualifications is to be encouraged.

  • 1. No I do not think the real estate industry is over regulated.

    2. INSURANCE – I believe it is fair that the industry regulation is that to trade as an agent you are required to have professional Indemnity, so to enforce that I believe every agency should have to provide a copy of this every year to the authority overseeing this area. That is protecting the consumer instead of allowing those who flaunt the system to go un touched and with the cash still in their pocket.

    3. OVERSIGHT – Trust account fraud is an issue and in the case of sole traders and small partnerships one of the business owners is usually responsible for the trust accounts, I accept that responsibility is OK. But for any business over 12 employees an audit of the trust account should be done twice a year and for company with over 25 employees audits should be quarterly to reduce the chance of fraud.

    4. CPD – I believe in training so CPD must continue BUT. Companies that offer training must have their material reviewed every 2 years, and at least one new module of learning should be replaced with a current issue under discussion for training each year.

    5. WORKING IN THE INDUSTRY.
    A. Firstly the industry can do with more experience staff and I believe more senior licenced people would stay in the industry if they could be employed on their licence without having to go through the tests. I suggest if they had held their licence continuously for more than 5 years the tests should not apply. Many of these people just want to supplement their retirement and be a contributor to their community and feel good about themselves and to do sales 1 or 2 days a week. By having to pass a test also traps them with their first employer as they cannot pass the test when applying for a new job as their income has fall with their level of activity.

    B. To gain a licence should be tougher. An agent should have 3 years experience in real estate or a parallel profession, accounting or legal. There should be no short courses and no exceptions outside of those qualifiers. We need to be professional and put value back into our licences.”

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