Real estate changes that commenced 30 April 2018

Increased penalties

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.

Trust accounts

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.

Trainees

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.

Prosecutions

CBS is able to start prosecution proceedings within five years of an alleged offence, without requiring Ministerial approval.