The Real Estate Institute of NSW (REINSW) has exposed the NSW Government’s attempt to mislead consumers.
Minister for Better Regulation and Innovation Kevin Anderson recently announced the NSW Government will appoint a Property Services Commissioner to “properly support the property services industry” and ensure “a strong, vibrant property sector, which is responsive to the needs of property services professionals”.
However, the fleeting reference to the Commissioner making recommendations to “the regulator NSW Fair Trading” exposes the announcement as mere lip-service with no capacity to deliver meaningful change, REINSW CEO Tim McKibbin says.
“The property services industry and the complexities attaching to real estate transactions demand a regulatory authority that has deep industry knowledge, and with a commitment to work with industry, not against it. NSW Fair Trading has repeatedly demonstrated its inability to protect consumers and support the state’s biggest economic contributor,” Mr McKibbin says.
"Seeking to placate the community’s calls for a better regulatory environment, Minister Anderson has taken the disingenuous path of appearance over substance and in doing so has condemned consumers to the same systemic regulatory problems that currently plague the industry.
A TIMELINE OF DECEPTION
- Industry calls on the NSW Government to establish a dedicated industry experienced regulatory authority to drive market confidence and better consumer outcomes.
- Government repeatedly refuses.
- The Property Services Council Bill 2021 sets out the plan for an independent, industry experienced Commissioner for Property Services to replace Fair Trading as the industry’s regulatory authority. It passes the Upper House.
- Pressure for reform mounts and Government realises it must respond.
- Government deceives consumers by falsely claiming the Bill is industry’s attempt to self-regulate. Yet, the Bill clearly and succinctly states otherwise.
- Minister Anderson announces a plan to appoint a “Property Services Commissioner”, claiming it to be his idea.
- Further deception is exposed as it emerges the new role will sit within Fair Trading and be resourced by the same team which consciously works against consumer outcomes. By design, nothing changes.
“The Minister’s attempt to take credit for an idea that is not his own, and which both he and Fair Trading have up until now vehemently opposed, is appalling.
“Let there be no doubt: the Minister’s new Commissioner will be selected by Fair Trading. The Minister will appoint that person as instructed. The status quo continues. Consumers deserve more,” Mr McKibbin says.
Underlining the deception is the NSW Government’s establishment of a new “Property Services Expert Panel”, a re-branded reiteration of a Fair Trading-administered group which operates under the guise of industry engagement.
The REINSW has resigned its place on the panel. Mr McKibbin explains why this action was necessary: “We are serious about reform and can therefore not assist the Minister to perpetuate the ruse of consumer protection which he falsely claims the panel delivers. The panel meets for two hours every two months and is the epitome of pointless engagement. As ever, Fair Trading sets the agenda and as ever, nothing changes.”
In coming weeks, the NSW Lower House will debate the Property Services Council Bill 2021, an important regulatory reform which would see an empowered, experienced and – crucially – independent Commissioner for Property Services installed as the industry’s key regulator in place of NSW Fair Trading.
For consumers, this important reform will help prevent real estate-related disputes and deliver better outcomes. It will create a better environment for consumers, industry and Government, enabling broader stakeholder engagement in tackling issues, and ultimately, deliver better policy.
The Bill, which has passed the Upper House, will also mean the state’s largest industry, which contributes over $10 billion annually in tax revenue and employs more than any other, will be overseen by a regulatory authority exclusively focused on the industry.
“It is the view of industry and the NSW Upper House that a dedicated, experienced, independent authority committed to delivering better outcomes for consumers and properly engaging with the industry is necessary,” Mr McKibbin says.
“The Property Services Council Bill 2021 is reform that will promote the development of good policy to address issues before they cause consumers harm. A real estate transaction is the largest transaction most people will ever make. Consumers must be able to rely on an independent authority exclusively focused in this area,” he says.
To download the Media Release Click Here.
For further information contact:
Tim McKibbin, Chief Executive Officer, REINSW
Mobile: 0415 931 013
[email protected]
Stephen Naylor, Wise McBaron
Mobile: 0432 656 193
[email protected]
About REINSW
The Real Estate Institute of New South Wales (REINSW) is the peak industry body for real estate agents and property professionals in NSW. It represents more than 2000 agencies across residential sales, property management, commercial, strata management, buyers’ agency, agency services and auctioneering. Established in 1910, REINSW works to improve the standards, professionalism and expertise of its members to continually evolve and innovate the industry. It lobbies the government and industry on behalf of members, develops new products and services to benefit agencies and professionals, and offers training and ongoing professional development. For more information, visit reinsw.com.au.