The current training course to become an agent is just five days, while some training agencies offer a qualification in less time to attract more business, according to President of the REINSW, Leanne Pilkington,

Landmark real estate education reforms, that are expected to come into effect in New South Wales later this year, heralds the start of positive change in the industry, says Immediate Past President of the REINSW, John Cunningham.

As a result of 10 years of committed lobbying from REINSW, the real estate reforms have been passed and the changes to the CPD will be introduced soon. The changes in qualifications and duties are expected in October/November 2018.

Education requirements for a career in real estate will be significantly increased, with tougher annual training and higher entry level requirements, in line with the industry's aim to have the profession formally recognised. 

Cunningham said the overwhelming need for increased industry regulations became apparent a decade ago.

"It was becoming evident that the Federal Government's desire for increased competition in various industry sectors was starting to have negative impacts.

"The opportunity to rort the system by unscrupulous training organisations was resulting in an abundance of providers ripping off the system and producing either incompetent or incapable students with the necessary qualifications, but without the necessary skills to do the required jobs," he said. 

The reforms hope to address this issue by strengthening training standards, creating a new, more experienced and highly qualified licensee-in-charge to supervise agents, oversee trust accounts, and ensure compliance and conflicts of interest.

The reforms will also bring about greater transparency around fees, charges and commissions received by real estate agents, a requirement for trust account audits to be submitted to NSW Fair Trading, fraud prevention measures, and trust accounts for rent and sales money.

"These changes will result in better trained, more highly skilled and more capable participants in the industry. That is the outcome we (the REINSW) set out to achieve.

"The reforms will be far reaching, with new disclosure requirements and the introduction of the new licence class of Licensee in Charge a new education standard will be set. This class will require a Diploma qualification and as a result a new course has been developed with the desire to build business skills for business owners. Better run businesses mean better run teams, and better consumer experiences and outcomes.

"This new qualification will also mirror the impending professional standards program to finally create a uniform set of standards for the industry in Australia under a Federal Government recognised Professional Standards Scheme that will see our industry finally achieve professional status. This step could not be possible without the NSW Real Estate Reform package raising the bar to a new Industry wide height to enable the professional standards bar to be raised even higher," Cunningham  said.

To find out more about the reforms and what they mean for agents, visit the REINSW website.

The reforms will be explained in further detail at the REINSW Roadshow at Tamworth on 5 of June, Newcastle on the 6th of June, Hornsby on the 7th of June and Sydney on the 18th June.

Related reading:

REINSW puts real estate industry on path to professionalism

One in five NSW agents not meeting professional development standards

REINSW supports education and training reform paper