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Proposed deregulation of commercial agents slammed by REINSW

12 August 2014
REINSW has lodged a second submission with NSW Fair Trading in response to the proposed removal of requirements associated with licensing and regulations for commercial property agents.

The proposed exemption would allow agents to deliver commercial real estate services without obtaining a Certificate of Registration or Licence or completing further education. REINSW objects to the deregulation and delicensing of any class or type of agent in the real estate profession including commercial agents.

REINSW President Malcolm Gunning has previously said that the removal of certain agents under the Property, Stock and Business Agents Act 2002 is being fast tracked without going through the prescribed review process. The submission outlines REINSW’s stance on the issue.

“We are submitting our concerns directly to the Minister for Fair Trading Matthew Mason Cox, and will attempt to exclude from the remake of the Property, Stock and Business Agents Regulation (expected to commence on 1 September 2014) the exemption for certain large commercial agents from the requirements of the Property, Stock and Business Agents Act,” Mr Gunning said.

“Not only do we strongly oppose these proposed exemptions, but we are disturbed by the very nature of the way in which the NSW Government is going about fast tracking these important changes under the guise of cutting red tape.

“The Minister is attempting to bypass his own government’s procedures that require proper due process, including a Regulation Impact Statement detailing the impact of the removal of protections.”

REINSW’s submission highlights the need for regulation in order to avoid eroding the consumer confidence that exists in the current regulatory environment.

“The licensing regulations we currently have in place were established to protect consumers and other third parties. Removing the requirement for certain large commercial agents to hold a licence is pure nonsense,” Mr Gunning said.

“There are very serious consequences associated with the remake of the Property, Stock and Business Agents Regulation if it were to include the exemption, and we will lobby hard to ensure the rights of consumers, tenants, prospective buyers, buyers and other third parties are protected.”

REINSW opposes any proposal where due process has not been followed and which allows inexperienced, unqualified and unlicensed operators to practise real estate.

Download a copy of the REINSW submission >>>