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Real Estate and Property Industry Reforms Paper Released

The NSW Government has today released aย Real Estate and Property Services Industry Reform Paper, outlining the Governmentโ€™s vision for the stateโ€™s $15 billion real estate and property sector. The paper contains a strong focus on raising training standards, increasing transparency and accountability and strengthening trust account processes.

It is currently anticipated that the new laws will be in place in late 2017. The new laws must first be passed by NSW Parliament. It is anticipated that the proposed reforms will be considered by Parliament in early 2017. Continuing professional development (CPD) guidelines will be updated to reflect the new arrangements.

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 yearsโ€™ 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
  • CPD reforms.

โ€œPurchasing or selling a property is often a life changing decision and consumers need certainty that suitably qualified agents are managing this process,โ€ Minister for Innovation and Better Regulation Victor Dominello said.

โ€œThis 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.โ€

REINSW President John Cunningham said REINSW played a key role in working with the government to produce the Real Estate and Property Services Industry Reform Paper that outlines the Governmentโ€™s vision for the stateโ€™s $15 billion real estate and property sector.

โ€œWe have been lobbying the government on reforms for the industry in particular around education and training for many years,โ€ Mr Cunningham said.

โ€œFor 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 peopleโ€™s lives.

โ€œWe will be making a submission of support on all of the reforms and look forward to the reforms coming into effect in 2017.

โ€œWe encourage the public and other industry bodies to get behind these reforms which will undoubtedly help to improve what is the most significant industry in the NSW economy,โ€ Mr Cunningham said.

To help you understand the impact of the changes for current and future practitioners, refer to Fair Trading’sย questions and answers on the reforms.

Find out more about the reforms on the Fair Trading website, where you can download the Reform Paper.

If you want to give feedback you will need to provide this by the 5 December, 2016, Details here.

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