IMPORTANT REFORMS KEY CHANGES04th Feb 2020
URGENT ACTION REQUIRED FOR THE NEW REAL ESTATE REFORMS
IMPORTANT REFORMS KEY CHANGES
Fair Trading have published yet another change to the new reforms, due on the 23rd March 2020. All clients must be aware of the changes and act before the 23rd March 2020 to ensure they comply with the new legislation.
The change overrides previous notices that only Class 1 License holders were able to authorise Trust Account transactions. The Office of Fair Trading have replaced this with ONLY licensee in charge can approve transactions. Other key changes are highlighted below:
- All agents MUST have a separate sales and rental trust before 23rd March 2020
- ONLY the Licensee in Charge can approve Trust Account transactions – Regulation 31 to Delegate this authority will no longer be in place
- Corporations MUST nominate a Licensee in Charge and notify Fair Trading by 1st March 2020 – click here for quick access to form
All agents will be required to update their Policy & Procedure manual by 23rd March 2020 to reflect the changes in the legislation. This will include a flowchart of how payments are approved from the trust and a revoked notice of Regulation 31 – Delegation of Authority.
The changes will have a drastic effect on Real Estate businesses who outsource their trust account record keeping. The new legislation will require a review and possible change in procedure on how payments are made from the trust account.
One of the leading organizations in the review of procedures for Real Estate businesses is Jane Morgan from End of Month Angels at firstname.lastname@example.org .
Any queries on the latest changes please contact the Office of Fair Trading or here at Simeoni.