Clarity and a steady path has become a valued asset in the real estate industry in this new world order of Coronavirus.

While real estate agents, property managers and the many roles involved in ensuring people have a roof over their head have worked harder than they ever have before, a number of issues have arisen.

There is still no further information in the residential real estate arena, although a glimmer of light has been offered when the Prime Minister said the National Cabinet will be meeting again next Tuesday.

Advice from ASIC

A formal letter from the financial watchdog was sent to Australian real estate industry bodies outlining the issue of real estate agents providing unsolicited financial information to their tenants.

"Financial advice must only be provided by qualified and licensed financial advisers, or financial counsellors, not by real estate agents who neither hold the requisite licence, nor are an authorised representative of an Australian Financial Services Licensee," wrote Tim Mullaly Executive Director – Financial Service Enforcement Australian Securities & Investments Commission.

"Tenants facing financial difficulty need sound financial guidance and potentially debt counselling.

"Specifically pointing them to and recommending them to consider the specific possibility of accessing superannuation is, again, likely to amount to a breach of the Act."

Labor Party and REIA at loggerheads

The Labor Party jumped on board to join ASIC in their condemnation of those real estate agents providing unsolicited financial advice saying some real estate agents are bullying their tenants.

"Some real estate agents are bullying tenants by demanding they pay rent in advance and demanding they draw down on their retirement savings to pay rent," said Opposition Leader Anthony Albanese.

"While most agents are behaving professionally, Labor has received reports of unacceptable behaviour and calls on the industry to show more care for tenants in the face of the COVID-19 pandemic. "

REIA president Adrian Kelly has reacted to the Labor leaders comments saying he agreed that real estate agents providing financial advice is illegal but did not appreciate the broad brush Mr Albanese painted the industry with.

“To condemn all agents because of the actions of a minority is akin to saying all union members are militant lawbreakers because of the actions of a few," said Mr Kelly.

“Over the past three weeks I and many others in our industry have been very public about looking after the needs of both our tenants and property owners in particular those who are experiencing financial hardship. 

“Our members are receiving telephone calls every five minutes from our tenants and property owners who have lost employment and we have been waiting nearly two weeks now for the State and Federal Governments to agree on a framework so that we can get on with our job. 

“For the Labor Party to come out today slinging mud at our industry when they know full well that the vast majority of us are doing the best we can under very trying circumstances is irresponsible."

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