How to Get Yourself Licensed & Ready for 202011th Feb 2020
The Office of Fair Trading has issued amendments to the licensing requirements to operate a Real Estate business. The new legislation will take effect on the 23rd March 2020.
Jane Morgan from End of Month Angels has been part of the Fair Trading subcommittee last year and has been working on setting the mandatory topics for this year’s CPD under the new reforms. A summary of the changes and requirements for the new licensing is summarized below.
The diagram below illustrates the current license in force now and what will replace it as at 23rd March 2020:
For Current Licensing:
- Certificate of Registration
- Licensed Real Estate Agent
For New Licensing:
- Assistant Agent
- Class 2 – License
- Class 1 – Licensee in Charge License
2020 Licensing Reforms Changes
Certificate of Registration > Assistant Agent
Anyone operating on a Certificate of Registration on the 23rd March will transition to an Assistant Agent including if you are a Real Estate Agent, Business Agent, Stock & Station, Strata Management or Onsite Residential Property Manager.
Assistant Agents > Class 2
Assistant Agents will have 4 years to upgrade to a Class 2 license. Failure to do so will mean the inability to work in the industry for a period of 2 years. Anyone operating with a COR level who was previously doing trust accounting and approving payments will no longer be able to perform this function. You will also not be able to conduct transactions on behalf of a party with the exception of a Residential Tenancy Agreement. All Agency agreements (Sales and Property Management) will need to be co-signed by either a class 1 or class 2 license holder.
Current License Holders > Class 2
Anyone who holds an existing license on the 23rd March will transition to a Class 2 License holder. You will be able to sign agency agreements as normal but will not be able to authorise trust account transactions. You will also need to attend mandatory CPD topics and elective CPD topics throughout the year.
Licensees in Charge > Class 1
Anyone who is currently a Licensee in Charge of a Corporation will automatically transition to a Class 1 license (now known as “Licensee in Charge License). It will be mandatory that you authorise all trust account transactions. This means that you’re essentially the person responsible for pushing the button to approve the payments from the trust account. Class 2 license holders will be able to take the transactions up to the point where it requires your final authorisation.
Please ensure you and your office comply with the new changes before the Office of Fair Trading investigate.
For any additional advice on licensing please contact The Office of Fair Trading or Jane Morgan at End of Month Angels on firstname.lastname@example.org