Property Industry Reforms - 23rd March, 2020
On the 23rd March, 2020 the rules that govern Real Estate and Real Estate licensing changed and it affected every person who holds a Real Estate Certificate of Registration or Real Estate licence.
This is the summary of the main changes and the way it will immediately affect YOU.
Certificate of Registration holders:
On 23 March 2020 if you hold a Certificate of Registration it will be renewed for a period of 4 years to a Certificate of Registration - Assistant Agent and it will be restricted so you can only undertake the work that your existing Certificate allows you to undertake, with some important changes.
The important changes are: -
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On or after 23 March 2020 you will not be allowed to sign agency agreements, partake in the exchange of contracts, although you will be allowed to sign leases
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You will not be allowed to have the words real estate agent or indicate that you are a real estate agent on your business cards or on a real estate website. Any other title you use must be clear that you are not performing the function of a real estate agent.
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You will not be allowed to authorise transactions on a trust account under any circumstances
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You will have four years in which to obtain a Certificate IV that meets NSW Fair Trading’s education requirements. At 23 March 2024 if you have not obtained a real estate licence your Certificate of Registration will not be renewed and you will not be able to re-apply for a 12 month period.
Between 23 March 2020 and 23 March 2024, you will be required to undertake a minimum of three units of competency per year from the Certificate IV courses as specified by NSW Fair Trading.
Licence Holders:
On 23 March 2020 all holders of a real estate Licence in NSW, except licensees in charge of a businesses, will have their licences converted to a Class 2 real estate licence restricted to the duties that their existing licence allows.
Licensees in charge will have their licence converted to a Class 1 real estate licence - Licensee in Charge.
Class 2 Licensees will be able to perform all the functions they perform now except: -
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Class 2 Licensees will not be able to authorise movements of funds within or from a trust account. This work can only be done by a holder of a Class 1 Licence
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Class 2 Licensees will not be able to open or operate a trust account
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Class 2 Licensees will not be able to be in charge of a real estate business
Class 1 Licensees will be able to perform all the functions they perform now including operating trust accounts. They will be required to authorise all trust account withdrawals and transfers personally and cannot delegate this function to any person who does not hold a Class 1 Licence.
NOTES:
- Prior to 23 March 2020 existing licence holders who are not a licensee in charge can apply to NSW Fair Trading to be a Class 1 licence holder after 23 March 2020.
- Class 1 Licence holders will be required to undertake 6 hours of CPD in the CPD year 23 March 2020 to 22nd March 2021 and then 9 hours CPD each CPD year after that. After 23 March 2021 the extra 3 hours will be business based.
- Class 2 Licence holders will be required to do 6 hours CPD in each CPD year. Three hours will be compulsory subjects and 3 hours elective.
Certificate IV requirements:
If you are presently enrolled in the qualification CPP40307 – Certificate IV in Property Services (Real Estate) and have completed and been found competent in at least one unit of competency prior to 23 March 2020, you may use that qualification to satisfy NSW Fair Trading’s education requirements when you apply for a real estate licence after 23 March 2020. Any units of competency you complete after 23 March 2020 and before you are issued with a licence, can be used to meet the CPD requirements for Certificate of Registration Assistant Agent holders after 20 March 2020.
Anyone applying for a Licence after 23 March 2020 who has not completed any units from the CPP40307 qualification will be required to undertake a new Certificate IV in Real Estate Practice - CPP41419.
After 23 March 2020 anyone applying for a Class 1 Licence will be required to hold a Diploma of Property (Agency Management) - CPP51119.
For full details of the changes go to: www.fairtrading.nsw.gov.au
