If you are a regular reader of our blogs (like we know you all are!) you would have heard us banging on on over the last year (and the year before that) about the upcoming NSW licensing reforms for the Real Estate Industry. In case you missed it, here is a brief update:
- 2018 TRUST ACCOUNTING REFORMS – WHAT TO EXPECT
- NEW PROPERTY LICENSING TRAINING REQUIREMENTS – PREPARE FOR THE CHANGES AHEAD
- OPENING A NEW TRUST ACCOUNT – PREPARING FOR CHANGES AHEAD
- THE FUTURE OF THE PROPERTY SERVICES INDUSTRY – WE REVEAL THE GOOD, THE BAD & THE UGLY
We told you we had prepped you right?!
Yes, we are still waiting.
Just like you, we are eagerly awaiting the implementation of the changes. Fair Trading have announced that the changes are not far off. An exact date is yet to be confirmed but we have been advised that it will happen at the latter end of this year.
Why Is There Change Afoot?
We know that change can be scary. However, the main reason for the reforms will indeed help the industry. They will help to:
- Provide a career pathway for industry practitioners
- Establish clear duties and responsibilities
- Increase the supervision
- Protect the consumer from dealing with inexperienced operators.
Along with these benefits, there will also be things Property Mangers & Trust Accountants cannot do on their current Certificate of Registration.
3 Things Property Managers & Trust Accountants Won’t be Able to Do Post NSW Licensing Reforms
Authorise Trust Transactions
Property Managers or Trust Accountants will NOT be able to authorise any transactions from the trust account. All payments from the trust account will need to be made specifically by holders of a Licensee in Charge license. ‘Authorise’ means that Property Managers/Trust Accountants will be able to prepare trust transactions but not have authorising access to the bank, be a signatory of the trust account cheque book or hold an authorising device from the bank.
Sign Agreements Without Licensee
All Property Managers entering into an agreement with a new Landlord will be required to have the document ‘signed off’ by the Licensee in Charge or someone with a full License. Unfortunately, this is not ideal in reality when trying to acquire new business… ‘hang on Mr. Landlord, I’ll just get my superior to sign off on this.’ Once again, new processes will need to be put in place to deal with your workflow.
Work in the Industry after 4 Years Without an Upgrade in Qualifications
All current Certificate of Registration holders have 4 years from the reform date to obtain a license at a Diploma level (Currently Cert IV level). If individuals do not meet the requirements within the 4 year deadline, they will face a 12 month operating exclusion.
How to Prepare for the Changes Ahead
- Firstly, read our above blogs that cover various aspects of the changes ahead.
- Secondly, speak to our friends and partners at the Australian College of Professionals (RTO #91513). They can assist you with completing the necessary training requirements prior to the reforms. Also, depending on your existing skills and qualifications, you may be eligible for Recognition of Prior Learning (RPL) on some aspects of the licensing course.
End of Month Angels have worked with ACOP for some time now and have been busy preparing for the changes ahead. Our staff have been working towards obtaining their licenses and will all eventually hold a Licensee in Charge qualification. This means, post reform implementation, all members of our team can assist those clients who do not have their internal staff qualifications up-to-date.
Contact us to discuss how we can assist your team in preparation for the changes ahead.
– Jane Morgan is the Director of End of Month Angels, a consultancy firm specialising in Trust Accounting. Jane knows the legislative requirements of running a successful Real Estate office through her 21 years industry experience. Don’t trust just anyone with your trust accounting. Book an appointment with an End of Month Angel today.