Scott's Weekly Column

Big changes in Real Estate

Real Estate in NSW is about to undergo its greatest reforms since 1941.

Effective from 1st October 2018 the recently passed Property, Stock and Business agents Amendment Act will change: -

How people enter the industry

How people operate in the Industry

How business is conducted and

How the Dept Fair Trading will enforce the Act.

In summary the changes were brought about to make the industry and those that work within it, more professional, better educated and more accountable.

No longer will someone be able to spend a week at some fast track training organisation and then walk out a fully licensed real estate agent legally able to operate their own business despite never having worked in the industry. Under the changes there will be required learning involving a diploma and a minimum of two years spent working in the industry under a licensee before anyone can apply for a licensee-in-charge license to operate their own business.

In addition to this anyone working within the industry in an operational role which involves real estate advice or trust accounting (namely salespeople and property managers) will be required to upgrade their certificate of registration to a full real estate license within four years of 1st October 2018 or within 4 years of entering the industry. Should they fail to do so, they must leave the industry after four years for at least 1 year before applying to re-enter the industry. 

The changes have been extremely well received by the Real Estate Institute of NSW and professional real estate agents who have been pushing for these changes for some time. For those in the industry that have always sought short cuts and/or operated on the fringes it will force them to either become more professional with the correct qualifications or leave the industry which can only be a good thing for all.