Proposed Changes to Real Estate Education Requirements

Greg Jemmeson: Today I'm here with Brian Cannan from Think Real Estate. Hi Brian!

Brian Cannan: Hello Greg.

Greg: As many of our agents will be aware there are major reforms coming to the property stock and business agents act and around those reforms there are a lot of educational changes and we're wondering if you could let our listeners know what some of those might be.

Brian: There are educational changes and fair trading have told us that they are going to make those changes and they're doing the legislation right now so they'll be in within say 12 to 18 months and there's some big ones to have the entry level of real estate which is the certificate of registration course there are four units of competency at the moment and most people that means four subjects there's going to be six or seven, fair trading are looking at doing seven units of competancies or seven subjects so that's almost doubling the education requirements to enter the industry now once you do that and you get a certificate registration and you get to put that under a licensee you will have four years to be able to get your certificate 4 license and with that you will be able to apply for your license but if you don't do the education requirements to have that certificate 4 and properly service real estate then you won't be able to work in real estate. And that's a big change we're saying that everyone working in real estate will need to get their license or will need to do the education requirements to get their license in the first four years if they don't they won't work in real estate.

Greg: After we've got our license what do we do from there?

Brian: Once you if you apply for your license then you can act as you do now as a licensed agent but you can't open up an office they're starting your category called licensee in charge or license manager we're not sure they're calling it just yet and you'll need two years experience and have the Diploma course to be able to start your own office so there's going be three tiers of education requirements in real estate: Certificate of registration, they're making that a lot harder so it's going to cost more and take a lot longer you're going to have to have your license as you do now but everyone's going to have to do it or you can't work in real estate. And, if you want to start your own business you have to have that licensee in charge category and have two years experience and have the diploma subjects.

Greg: Is there differences to the CPD requirements for the different categories?

Brian: The CPD requirements will be different whilst the civil registration person is studying their license they won't need to do CPD the licensed person will need to do six hours of CPD three hours compulsory and the licensee in charge, the diploma level, they only need to do nine hours a year so license six hours licensee in charge nine hours a year six hours compulsory, so yes that'll be a lot of change for them.

Greg: Let's say that the legislation comes into place say 1 July next year, what happens with all the license holders now, do they automatically become license managers under the legislation or do they have to apply?

Brian: They have to apply and Fair Trading is saying they will grandfather the licensees in charge into the license holding position.

Greg: Meaning they won't have to do the further courses?

Brian: They won't, that's what they're saying but that's why they're going to be doing 9 hours.

Greg: They'll be doing extra CPD?

Brian: Yes, they'll be doing extra CPD. And a lot of the CPD they'll be doing are out of the diploma course, so over a period of time they will have their diploma.

Greg: And what would your recommendation be for people who are currently certificate holders?

Brian: It's only going to get harder we know that. The assessments are going to get harder, each year they make a change they don't make it easier they make it harder so you can hold off if you want to and do a harder course and longer course or you think about doing it now.

Greg: So that would be your recommendation?

Brian: Yes, that would be my recommendation, give me a call!

Greg: Okay, thank you Brian!