There is nothing like an impromptu spot check right?

It just takes you back to the gold ol’ days of Year 10 maths when your teacher decides to plonk a spot test on your desk at 2pm on a Friday afternoon.

Still gives me the shivers.

Department of Fair Trading has started doing NSW state-wide spot checks again.

But!

There is no need for you to break out in a cold hard sweat just yet.

Just make sure you are following the guidelines and you’ll be passing with flying colours in no time.

How to Prepare for a NSW Fair Trading On-The-Spot Check

  1. CPD register

    It is the responsibility of the licensee to maintain a CPD Register that contains copies of all CPD certificates issued to individuals that are employed within the agency. The register shows evidence of mandatory training requirements and continuing Professional Development requirements.

  2. Agency supervision guidelines

    The chain of command must be clearly identifiable and accessible to all members within the office. The who is responsible to who document. Also, have it on hand to produce when requested.

  3. Insurance documents

    Each agency must hold professional indemnity insurance of a minimum of $1-$3 million. Individual agents operating as contractors under this agency must hold their own insurance and all parties must provide copies when requested.

  4. Licenses

    Ensure all licenses are up-to-date with no one operating under an expired license. It’s so important to check this each and every year. Because as we know – a lot can change within the space of a year!

  5. Signage

    All agents operating under the licensee’s license number must have their names displayed clearly on the front door of the premises.

  6. Proof of audits

    Have any past audits on hand ready to show past compliance.

  7. Contractors’ licences & insurance

    Keep all the relevant licenses and insurance details of all your contractors and trades on hand. It is your responsibility to ensure all contractors are operating under valid licenses with adequate insurance.

Tick off all the above boxes and you are in good stead should you get an impromptu knock on the door. Take a deep breath – you got this!

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 25 years’ industry experience. Don’t trust just anyone with your trust accounting. Book an appointment with an End of Month Angel today.