Property Occupations Act 2014 - Part Two

Licensing

There have been a number of changes to the licensing of agents. They have gone from 9 different licenses to 4.

  1. Real Estate Agents (This is often referred to as your principals license)
  2. Resident Letting agent
  3. Auctioneer
  4. Registered sales person

Developers will no longer be required to obtain a license even if the sell more than 6 properties in a 12 month period.

A real estate agency that has more than one office will need a person in charge of each office but they only need one principal license. The offices can operate with a registered salesperson in charge if they dont operate a trust account out of the office or if they do then they can have a resident letting agent in charge.

Onsite letting managers can operate more than one complex as long as they have an office in each complex. They don't need a separate manager in charge of each complex.

Disclosure Statements

The form 27C has not been abolished ( they may change the name of the form). However you are no longer required to disclose your commission on the form.

Developers that sell more 6 or more properties in a 12 month period need to provide a disclosure statement notwithstanding that they don't need to be licensed.

Beneficial Interests

The definition of beneficial interest has not changed. Under Section 155 the property agent still commits an offence if the agent obtains a beneficial interest in the property. However there is an exemption where the agent obtains the clients written acknowledgement in the approved form that the clients are aware that the property agent is interested in obtaining a beneficial interest in the property and consents to the agent or sales person obtaining the interest. The agent must act fairly and honestly in the sale and the client needs to be in substantially as good of a position as the client would be if the property was sold at fair market value.

There is nothing preventing the agent from still claiming commission from the client.

Section 149 Statements

These have been abolished. Therefore you no longer need to give a statement to a buyer, of non residential land, saying you cant build a house on the land. This section had been allowing solicitors to get buyers out of contracts for the purchase of commercial land.

We will be conducting in house training on the changes to the law and how to prepare the new listing agreements over the next couple of months. If your office is interested in Roland attending and providing this training please contact us 1800 632 394.