2020 Property Industry Reforms FAQ’s
Will the categories of licence remain the same?
No. Some licence categories will be consolidated; the categories of Buyers agents, Business and On-site residential will no longer exist in their own right.
Licences will be issued in the fields of Sales/Leasing, Stock and Station and a combined Sales/Leasing and stock and station Licence.
Agents wishing to sell or lease residential, commercial, businesses or act as a buyers’ agent will require a Sales and leasing licence.
Those wishing to sell rural property or livestock will need the Stock and Station licence.
What are changes around new people getting into the real estate industry?
As of 23 March 2020, a new entrant will need to complete 5 units from the Certificate IV in Real Estate. These new entrants will be called Assistant agents as opposed to Property Certificate holders.
How do I become a licensed agent (Class 2)?
After 23 March 2020 you will need to hold an Assistant agent authority for a minimum of 12 months and a maximum of 4 years, after completing the Certificate IV in Real Estate Practice you will be able to apply for a real estate licence (Class 2).
How can I become a Licensee in charge (class 1)?
After 23 March 2020 to become Licensee in charge, you will be required to have held a real estate licence for a minimum of 2 years and have completed the Diploma of Property (Agency Management)
What if I am currently doing a course to complete my certificate of registration?
For those that are completing the current 4 unit Certificate of Registration course, you will need to apply for your certificate of registration before the commencement date of 23 March 2020, after this date Fair Trading will only accept the new 5 unit course for the new training package.
What happens if I am currently doing a course to complete my real estate licence?
For those completing the current Certificate IV licence course you may fall into one of three categories;
1. For those that wish to become a Licensee in charge (Class 1), you must have had your licence issued by Fair Trading before the change (I would encourage submission of your application by mid-February 2020 at the latest) you must also be listed as either licensee in charge or a sole trader as of the 23 March 2020.
2. Those that wish to hold a Real estate Licence (Class 2) if you do not have a minimum 1 years experience as a certificate of registration holder you will need to get your application in before the commencement of the changes.
3. I already have a minimum of one year’s experience as a certificate of registration holder and just want to get my licence, you must have completed a minimum of 1 unit of competency from the Cert IV prior to the change, only then will your course be able to be used to obtain a real estate licence.
Does a corporation need to have more than one licensee in charge?
No, in fact, they will only be able to have 1.
Each corporation will be required to nominate only 1 licensee in charge this will no longer be geographically relevant, for example, a corporation that has 5 offices in various locations, will only have 1 licensee in charge and that person will be responsible for the supervision responsibilities (including authorising all trust account transactions) for all offices under that corporation.
As at 23 March 2020, the person nominated as the licensee in charge of a corporation or as a sole trader will have the option of upgrading their licence to Licensee in charge – Class 1.
Anyone that is not listed as a licensee in charge on this date will be subject to the same requirements as listed above to upgrade their licence.
What will change for me if;
I hold a current certificate of registration
Those that hold a Certificate of Registration on 23 March (or haven’t applied for a class 2 licence as of 23 March 2020) will not need to do anything, you will receive a 4 year renewal at your next renewal date. This will be a one-off and f you must meet the requirements and apply for a class 2 licence before the end of this period (see CPD obligations). Those that fail to complete this requirement before the end of the four year period will have their authorities to work in the industry cancelled and be forced out for a period of at least 12 months.
One of the most significant changes for assistant agents will be the restrictions on duties, with assistant agents not permitted to contract an agency, they will not be legally authorised to sign an agency agreement. After 23 March 2020 an agency agreement or any other document that “contracts an agency” will only be legally enforceable if signed by a licensed agent or the licensee in charge.
I am a licensed real estate agent but not the licensee in charge
You will automatically be transitioned to licensed agent (Class 2) category appropriate to the category of licence you currently hold. If you wish to transition to be licensee in charge you will need to be listed as the licensee in charge with Fair Trading as at the 23 March 2020 or as a Licensee in charge as a sole trader.
I am the licensee in charge
If you are a licensee in charge for a corporation that has more than one office, the corporation will need to advise Fair Trading of one only licensee prior to 23 March 2020, this will be the only licence holder that is able to transition to a Licensee in Charge (Class 1) without meeting the new requirements.
If you are a sole trader as of 23 March 2020 you will have the option of transitioning to the new category without having to meet any of the new requirements.
Continuing Professional Development (CPD)
I am a certificate of registration holder (assistant agent), do I need to do CPD each year?
Yes, you will be required to complete a minimum of 3 units of competency from the Certificate IV in Real Estate each year and complete this within 4 years.
What are the CPD obligations for licence holders?
Licence holders will be required to complete 3 hrs of compulsory and 3 hrs of elective CPD each year.
Compulsory topics will be set by Fair Trading each year based on industry needs and emerging issues each year.
After March 2021 an additional 3 hrs CPD will be required in addition to the above for Licensees in charge (Class 1).
Does CPD need to be completed each year before my renewal date?
Renewals will no longer be restricted to an annual basis and may be up to 5 years duration, therefore, CPD obligations will need to be met on an annual basis before 23 March each year.