Law change eases penalties for real estate agents
Real estate agents who fail to complete continuing professional development (CPD) requirements or pay their fees on time will no longer face an automatic five-year ban from working, following the passing of new legislation.
The Regulatory Systems (Occupational Regulation) Amendment Bill and the Regulatory Systems (Tribunals) Amendment Bill have both passed their final reading in Parliament, introducing changes across eight different Acts.
Associate Justice Minister Nicole McKee said the previous penalty was out of proportion with the offence and was stopping people from earning a living in their chosen profession.
Ms McKee said no other regulated profession imposed such a harsh consequence for failing to complete CPD requirements. She cited the case of one real estate agent who faced the prospect of being unable to work for five years after choosing not to complete a compulsory CPD topic she believed was not relevant to her role.
The legislation also expands the ability of conveyancers to undertake work, a change the Government says will improve competition and provide consumers with more choice.
What this means for property buyers and sellers
Although the changes primarily affect industry regulation, they highlight the importance of ensuring rules are practical while continuing to protect consumers.
Continuing professional development helps real estate agents stay up to date with changes to legislation, industry standards and best practice. At the same time, the Government has signalled that professional requirements should remain relevant to the day-to-day work agents perform.
The reforms relating to conveyancers may also benefit buyers and sellers by increasing competition when arranging the legal work involved in transferring property ownership. Greater competition can encourage innovation, improve service and potentially provide consumers with more options when choosing a conveyancing provider.
Property transactions often involve several professionals working together, including real estate agents, conveyancers and mortgage advisers. When each plays their role effectively, the buying and selling process can be smoother and less stressful for everyone involved.
Property purchases often raise finance questions at unexpected times. If any of your buyers or sellers would benefit from a conversation about their lending options, please feel free to put them in touch. We’ll help them understand what's possible and prepare for a successful purchase or sale.