Property Matters
In this issue
Fair Trading Strategy puts rental and property sector at the forefront
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NSW Fair Trading has launched its Strategy for 2024-2027, focusing on improving consumer protection and market fairness across NSW. Sitting under NSW Fair Trading’s Strategy are annual Regulatory Priorities for the 2024-25 financial year, which will place a significant focus on the rental and property sectors. Key focus areas for rental and property markets To ensure the rental and property markets operate fairly and transparently, we have outlined several key regulatory priorities:
Rental and property stakeholders in NSW are encouraged to stay informed. By understanding your rights and responsibilities, you contribute to a fairer and more transparent market.
Recent prosecutions and disciplinary action
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To maintain a fair marketplace for all, NSW Fair Trading undertakes prosecutions and?disciplinary action to enforce compliance with consumer protection and Property and Stock Agent laws. Listed below are some recent prosecutions and disciplinary action that resulted in a number of penalties.
NSW Rental Taskforce to help deliver a fairer rental market
A newly announced Rental Taskforce within NSW Fair Trading will work to deliver a fair, quality rental market. Led by the Rental Commissioner, the Taskforce will conduct targeted inspections and act on breaches by real estate agents and landlords, including solicited rent bidding, and failure to conduct repairs and maintenance. ?
Agents’ obligations for managing rented homes
Rules of conduct apply to real estate agents managing rental properties. Agents must act honestly, fairly, and professionally, performing their duties with reasonable skill, care, and diligence.
As part of the rules of conduct, when managing a rental property, an agent must promptly respond to a tenant’s request for repairs and maintenance, subject to the owner’s instructions.
Agents also cannot solicit rent bidding for residential rental properties. This means agents cannot advertise these properties with a price range or use terms such as ‘offers from’ or ‘by negotiation’.
Penalties apply if agents do not comply with the rules of conduct, with penalties up to $11,000 for each breach. Tenants and landlords can report an agent’s conduct to Fair Trading by calling 13 32 20 or via the Fair Trading website. ?
Tenant and Landlord Information Statements
Tenant and Landlord Information Statements outline the rights and rules for tenants, landlords and agents under the residential tenancy agreement.
Landlords and agents must give tenants a copy of the Tenant Information Statement (previously called the New Tenant Checklist) before signing a residential tenancy agreement.
Tenants should read the statement thoroughly and ask any questions before signing the agreement.
Landlords and agents must also read the Landlord Information Statement and acknowledge they have done so on the tenancy agreement before renting out the property. Penalties apply if these requirements are not met.
Visit the NSW Government website to download the Tenant Information Statement and Landlord Information Statement, which are available in multiple languages.
Tenants and landlords can also contact NSW Fair Trading on 13 32 20 or through our website with any questions or concerns.
Improved trust account audit compliance rate
As part of a real estate agent’s obligations, an agent must ensure all trust accounts are annually audited under the Property and Stock Agents Act 2002. Failure to audit a trust account is a serious offence that can result in significant penalties, including disciplinary action against the licensee.
Last year we saw a 75% increase in the return of outstanding trust account audits following initiation of the disciplinary process, resulting in the following disciplinary actions:
This highlights the importance of trust account audits and the need to comply. ?
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Trust account audit submissions due 30 September
If you’re a real estate agent or conveyancer and manage a trust account, your 2023-2024 audit submission is due 30 September 2024. Audit submissions are your responsibility as a licensee.
You must submit an audit even if the trust account is only operated for part of the audit year or closed before 30 June 2024.??
Ensure your audit submissions are completed in the online portal before 30 September 2024.
Any outstanding audits for the last three years can also be submitted through the portal. Penalties apply for audit submissions that are not completed and may lead to licence suspension.
Timely reminders for strata annual reporting
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Many strata schemes have been busy holding their annual general meetings (AGMs) and are now completing their next strata annual report – due within 3 months of each AGM.
To support the more than 86,000 strata scheme committees across NSW, plus the strata managers who help them stay up to date with their reporting requirements, the Strata Hub began issuing reminders earlier this year.
These timely reminders are sent when strata annual reporting is predicted to be due, using the date of the previous year’s AGM.
New Supervision Guidelines and CPD
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The NSW Strata and Property Services Commissioner, John Minns, recently hosted two online events for real estate, strata, and stock and station agents on the new Supervision Guidelines and CPD requirements that started on 1 July.
With over 2,800 people registering to attend, these online events provided agents the opportunity to better understand their requirements and ask questions of the Commissioner.
If you weren’t able to attend, you can watch a recording of the event and read the audience questions and answers on our website. This year’s CPD requirements include a new underquoting course developed by NSW Fair Trading and TAFE NSW, with input from the Real Estate Institute of NSW.
The course is mandatory for all licensed agents in residential real estate sales. The course must be completed online through TAFE NSW by 30 June 2025. Agents who complete the course before 30 October 2024 will receive a 50% discount on the $75 course fee.
Visit our website to find out more about the Supervision Guidelines and CPD requirements for this financial year. ?
Keeping your licence information updated
If you are a licensee and you have changed any of your details, you must notify NSW Fair Trading within 14 days of the change. This includes the licensee’s name, address, email, phone or other registered information. Penalties may apply if you don’t.
Having accurate registered details ensures NSW Fair Trading can contact you if needed. To change your details, please complete the change of details notification form and email [email protected]
All corporations must have a class 1 licence holder who is the licensee in charge of the business.
If your business has a change that impacts the licensee in charge, you must notify NSW Fair Trading of the change by completing the licensee in charge nomination form within 5 business days. Penalties may apply if you don’t. Please email the form to [email protected]
Qualifications and experience for extended assistant agents
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If you have been granted a one-off extension of your certificate of registration, you now need to proceed to complete your qualifications and experience and apply for a class 2 licence.
There are no further extensions beyond the 12 months already provided, and if you fail to apply for a licence, you will be ineligible to re-apply for a certificate of registration for a further 12 months. ?
New laws for residential land lease communities
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With more than 40,000 people living in residential land lease communities in NSW, changes are being made to how these communities are regulated, making it fairer for residents while supporting operators.
Following a statutory review of the Residential (Land Lease) Communities Act 2013 (the Act), a number of changes to laws that set out the rights and responsibilities of residents and operators will start later this year.
Automatic mutual recognition for property and real estate occupations postponed to 1 July 2025
Automatic Mutual Recognition (AMR) is a national scheme that recognises trade licences and occupational registrations across states and territories.
AMR has been introduced in all states except Queensland. AMR for property and real estate occupations was due to start this year, however will now start on 1 July 2025. ?
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