New laws for the real estate industry affecting the supervision of trainees, trust accounts and penalties came into affect on 30 April 2018.
Unregistered sales representatives may face penalties of up to $20,000. Penalties of up to $10,000 now apply for agents who fail to properly supervise trainee employees.
Offences relating to the inappropriate deposit or withdrawal of trust account monies now apply to everyone, not just registered land agents. There is a new offence for anyone that causes a defalcation, misappropriation or misapplication of trust account monies. Penalties of up to $100,000 and /or five years imprisonment may apply.
Trainee sales representatives and property manager trainees (from 28 September 2019) are required to be under ‘direct’ supervision. This clarifies existing best practice and ensures the trainee registration is operating as a temporary pathway to full registration to minimise any barrier to employment.
CBS is seeking to limit the trainee registration to 12 months. This is anticipated to commence from September 2019 and trainees are encouraged to complete the required training to upgrade to a full registration before then.
CBS is able to start prosecution proceedings within five years of an alleged offence, without requiring Ministerial approval.
CBS will continue to engage regularly with the real estate sector as we move towards mandatory registration for property managers by 28 September 2019.
Read more about the property management reforms