Real Estate Institute of New South Wales CEO Tim McKibbin has hit out at NSW Fair Trading in relation to real estate education reform within the state, saying the department doesn't have the industry experience to properly support the sector and represent the issues of the consumer.

The REINSW has renewed its calls for a dedicated Property Services Commissioner to be installed in the state following the re-election of the Liberals in the March election, with improved education identified as one of the most pressing concerns. 

It comes more than 12 months after the Property, Stock and Business Agents Amendment (Property Industry Reform) Act 2017 was passed in NSW Parliament.

At a glance:

• REINSW is continuing its campaign to have a dedicated property services commissioner installed within the state.
• The improvement of educational standards within the industry has been identified by CEO Tim McKibbin as the main reason for the push.
• Legislation to increase the education requirements was passed in NSW parliament last year but is yet to be activated.

Designed to increase education requirements within the industry, the legislation includes a higher entry level and annual training requirements for those in the industry.

Despite being passed by both houses of parliament on March 7, 2018, the changes are yet to be activated, with the entry level requirement for selling a home still able to be completed in less than a week. 

Mr McKibbin said the delay reflected the "resistance" of the department to change the education standard for real estate agents. 

"We have been battling to increase the education requirements within our industry for the better part of 10 years," he said.

"We have finally got to a stage where we have this legislation that awaits the regulation to under it.

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"The fact that it was passed more than 12 months ago demonstrates that the office of Fair Trading does not want this to go through.

"They have resisted the regulation which means that, after five years work, there has been absolutely no change to the regulatory environment for real estate agents."

Speaking in response to Mr McKibbin, Fair Trading Commissioner Rose Webb said the department was working constructively with industry associations and stakeholders, including REINSW, to progress the necessary reforms.

“NSW Fair Trading administers a robust entry qualification framework for real estate agents as set out under property legislation," she said.

“The qualification framework for individuals entering the real estate industry is to be further strengthened by the reform package that will require new education and experience requirements, to better align the duties of those working in the industry to their level of qualification."

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The Real Estate Institute of Australia is in the process of creating a National Professional Standards Scheme for the real estate industry, for which the REINSW, in conjunction with REIA, are working with the Professional Standards Councils (PSC) and its agency, the Professional Standards Authority, to explore how real estate agents can be formally recognised as a profession.

But Mr McKibbin said foundation education was still required for the scheme to progress forward.

"If Fair Trading won't allow us to have the foundation education that we need, then we won't able to build on top of that," he said.

"That is going to be one of the major issues that we have.

"Any building is only as good as its foundations."

Industry support

The REINSW received support from a range of industry professionals in its campaign for the appointment of a dedicated commissioner for the property services industry.

Ray White Managing Director Dan White said it was an appointment that "was long overdue".

"We support the REINSW efforts to make this a reality," he said.

"Property is the most significant financial transaction most Australians will ever engage in and has inherent risk.

“With more extensive legislation than all of the other comparatively straightforward industries currently regulated by Fair Trading combined, consumers need and deserve strong and consistent representation by a specialised department that can protect consumers and support the industry.”

Knight Frank Australia CEO Stephen Ellis agreed, said the significance of property transactions on the consumer needed to be taken into account.

“Given the significant effect property transactions have on consumers, an experienced commissioner would ensure professional standards are upheld, while also supporting the drive to increase education and customer satisfaction throughout the industry,” he said.

By Sean Slatter

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