King & Co Property Consultants believes the national licencing of real estate agents is a bad idea

by admin | 8th November 2012

While understanding its intentions, King & Co Property Consultants does not support the mooted national licencing of real estate agents. Here’s why:

  • It proposes that there will be no licencing requirements for ‘non-residential’ agents.  Our view is that this will reduce the standard of professionalism in the industry by removing training requirements and expose the public to unregulated conduct.  Whilst we are always ready for strong and healthy competition, the removal of licencing would allow almost anyone into the industry and one can only wonder at the consequences for all participants in the industry.
  • Of particular concern, is that the regulatory impact statement is silent on how trust money would be managed.  If the proposal were to strip  non-residential agents of the ability to conduct trust accounts and transfer this to another profession such as the legal or accounting professions this would further complicate non-residential real estate transactions and increase the cost of doing business.

In the event that the national licencing is implemented, then our     recommendation is that the licencing of non-residential agents should be required and that the licencing of agents remain with the state under a mutual recognition process. If necessary, it may be appropriate to consider a separate class of agency licence for ‘non-residential’ agents and, further, local deregulation of the non-residential sector in any future amendments to the PAMD Act.

King & Co Property Consultants also welcomes the current review of the PAMD Act by the new Queensland Government, specifically the Attorney-General, the Honourable Jarrod Bleijie MP’s consultation with the industry currently underway through the REIQ.  We recommend that the current legislative requirements regarding the form and content of appointment between agents and principals for non-residential property transactions be removed from future legislation.  In our view the form and content of agency appointments should be entirely a matter to be negotiated and agreed upon between the agent and principal.  There are many cases where the impost of the form and content of appointment prescribed under the PAMD Act has been the subject of costly litigation.  We consider the current legislation and court rulings tend to focus on ‘form’ over ‘substance’ which is entirely counterproductive to efficient business.   In the case of non-residential real estate transactions the agent and principal should be free to negotiate and agree on their terms of business.

Acceptance of our recommendation, in our view, would significantly streamline non-residential real estate transactions, increase flexibility, increase efficiency and reduce potential litigation over ‘technical’ matters.

Please note, a variation of the above proposal was forwarded to the Queensland Attorney-General, Hon Jarrod Bleijie MP

Wayne J Robson
General Manager
0417 737 705

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