New South Wales continues to advance its ever-booming real estate industry with plans to introduce a number of new policies that build on the previous changes to licensing in the state. As part of the property industry reform bill of 2017, the new legislation to the Property, Stock and Business Agents Amendment have been finalised, and we are looking to accompanying regulations yet to be finalised.

So, what does this mean for current and future real estate agents working in NSW?

The new legislation has been introduced to aid professionalism, trust and business growth in this sector. The legislation includes three key attributes that the framework is based around, having three types of licences across the real estate industry.

1. These three licenses are:

   • License in Charge (Class 1)
   • Licensed Agent (Class 2)
   • Certificate of Registration Holder (Class 3) 

This legislation is intended to clarify the effective regulations required within NSW as a practising agent, as well as aid customers and clients with trust and transparency.

Class 1 License

The first class of registration within the legislation is the Class 1 Licensee in Charge. This license is a requisite for an individual who is a licensee in charge of a business. This is the highest level of licensing and likewise, requires the highest level of qualification, with the requirement of having been working for at least two year’s as well as having obtained a current diploma from the National Property Services Training Package.

For best industry practices, leading transparency and trust amongst clients and industry workers, this meets the government's requirement of having a fully professional, experienced industry to handle business responsibilities.

Class 2 License

The full real estate license many currently have is equivalent to the new Class 2 licensed agent license in its current form. In this bracket, the holders of such license will hold the title of Licensed Agent. Having already been required to hold a Certificate IV level qualification, this new class requires agents to have at least 12 months of experience in the industry to qualify to apply for a full license. 

Class 3 License

The final class in the new licensing scheme is the Licensees in Charge. This license class ensures that holders are required to complete at least three hours of CPD that focuses on business practices, leading many to sign up to the business-focused classes of leading companies around the state. In addition to the 3 hours of business-focused CPD, there will also be a requisite 6 hours CPD on an annual basis.

The CPD or continuing business development program is a requirement for both class 1 and two license holders to adhere to. It is required that each licensee complete three hours each of both compulsory and elective real estate topics, increasing from 12 original development courses.

These changes have made the process of moving into real estate much more streamlined and simpler to understand. Those wishing to start their careers in the real estate industry or those wishing to switch industries will have a much simpler view of what the possibilities are when considering a move with real estate CPD courses.

Current Industry Agents

This qualification process and licensing system allow traditional estate agencies with multiple offices and numerous employees to apply for the licensee in charge license, covering their needs on a day-to-day basis.

In specialist and consultant roles where the licensing class system has already been passed as a bill, the accompanying regulations are still yet to be finalised, and many representatives in the industry are doing their best to work with good practices to ensure that every position in the industry is adequately covered by the correct and appropriate license.

Some individuals in the industry, such as onsite managers who simply let the property they manage, are being pushed by ARAMA to be exempt from being asked to hold a full estate agents license due to their particular role not being covered in the legislation.

Delays in the Implementation Process

Real estate reforms from 2018 seem to be slipping into 2019, with some estimates indicating the process will be complete by July 2019. With the legislation being put out to consultation within the industry, and companies that offer licensing training clamouring to get the latest draught to put into their new year's courses, the industry is in the midst of real change.

The new Fair Trading legislation is leading to changes in the qualifications sector, and many new accredited organisations are ramping up their support for the new laws. The Certificate IV qualification entry units being increased to 7 changes things in terms of additional experience required, as well as the increase for industry experience under the supervision of a qualified Licensee in Charge.

The silver lining for current certificate and license holders is that they will be able to continue to work with their existing qualifications. The legislation put in place will allow these transitional qualities. A few hours of additional training or qualifications will be needed for a small number of current industry agents of all classes, to ensure that your local NSW real estate agent courses are booked in time for the legislation to come into effect in 2019.