changes-to-nsw-property-licensing

Changes to NSW property licensing

On 1 July 2018 changes were made to the NSW property licensing laws to improve entry standards and training requirements for the real estate and property industry and increase consumer protection measures.

HOW DID THE CHANGES TO NSW PROPERTY LICENSING LAWS IMPACT OUR STRATA MANAGERS?

The primary aim was to meet consumer expectation that each strata manager should be licensed. As you might know all strata managers at Strata Plus have been licensed. It’s part of our brand.

The corporation license with NSW Fair Trading remained the same. The changes were in the individual license categories and the reasons provided for these changes included:

  • clearer career progression
  • avoiding start-up companies by individuals with zero experience
  • reducing the risk of misappropriation of trust funds.

The terminology is the same for strata as for real estate, though they remain distinct license classes.

WHY ARE OUR STRATA MANAGERS NOT IMPACTED?

In the early years of Strata Plus, we made a commitment for the benefit of our clients that all our strata managers would be licensed.

We hire on the basis that we require the individual to obtain their license if not already held. This requires completion of a Certificate IV in Strata Management. Some applicants have chosen to withdraw for that reason, however, the team continually agreed that it was a standard to be maintained.

Before the 2018 changes to the Property Stock Agents Act NSW 2o02 no experience was required to obtain a strata licence. Now in NSW, in addition to the Certificate IV, the applicant is required to have 12 months’ experience working in strata.

Continuing Professional Development (CPD) changed from a ‘points’ based system to hours based. On 22 March 2021, the first CPD year came to a close and each Strata Plus team member holding a strata licence completed their required 6 hours of CPD.

The good news was that the CPD did not raise any additional obligations for our team. Achieving the minimum has never been a consideration. Each year we fund and arrange through SCA for the team to meet NSW Fair Trading’s requirement. In addition, we have had an education schedule that includes SCA events, visits from external experts, and a minimum of monthly internal training and discussions. We invest in ongoing professional development of our entire team so the team also achieves CPD through AICD, CPA & the Tax Practitioners Board.

An individual licence holder now either holds a Class 1 or a Class 2 licence.

Strata Plus has 12 Class 1 agents.  All Licensees in Charge (LIC) must hold a Class 1 licence. Up to 22 March 2021, an individual who held a class 2 licence for more than 2 years, and who applied could qualify. From 23 March 2021 the individual has to also complete either a Diploma in Property or a Diploma in Property Services. From 23 March 2021 Class 1 licence holders are required to complete 9 hours of CPD.

Strata Plus has 27 Class 2 agents.  Class 2 agents are required to complete 6 hours of CPD each year.

The main change being the area for concern for our competitors, was that the Certificate of Registration (COR) no longer existed and that individuals will be awarded an Assistant Agent License in its place. The majority of strata managers in NSW held a COR rather than a license, and so competitors had to change their education strategy as most of their managers had only completed three units of the Certificate IV.

From 23 March 2020 to be awarded an Assistant Agent License requires the completion of seven units from the Certificate IV required for the license. The individual then has four years to complete all Certificate IV units. If the individual does not complete the units within the four years, the individual will lose their Assistant Agent License. Strata Plus currently has 4 more team members who are due to complete their requirements to gain a Class 2 licence before 22 March 2022.

In summary, property owner consumers can rely on the fact that every NSW strata manager will have a strata property manager license within four years of the new legislation coming into force.

And the best news for our clients is that that has been our standard all along. Each Strata Plus strata manager holds a Class 1 or Class 2 licence. And in addition to this, all our strata managers are accredited with Strata Community Association (SCA).

Further information on licensing changes can be found on the NSW Fair Trading website.

^
X

Step 1 of 2

  • Give us a compliment

X
  • Your suggestion

X

Step 1 of 2

  • Your complaint

Translate »