Fair Trading NSW is introducing a new real estate course! These reforms will commence on the 23rd of March 2020. The professional pathway for new entrants into real estate in NSW is now split up into three tiers.
We advise NSW students undertaking or enrolling into the Certificate IV in Property Services prior to March 23rd “Not to panic”. We welcome these changes for many reasons, and we hope you can embrace them as well.
The main reason we welcome the changes in the new CPP41419 – Certificate IV in Real Estate Practice course will be a more interesting and engaging learning experience.
In this blog post, we’ve simplified the changes here to avoid overloading students with a lot of information. It’s easy to get confused by these new changes!
If you have any further questions contact Rod to have a chat (leave your name and number for a call back) firstname.lastname@example.org
Tier 1 – Assistant Agent
Previously Certificate of Registration
Requires 5 CPP41419 Certificate IV Units – Property OR 7 Cert IV Units – Strata
Tier 2 – Agent (Class 2)
Previously Full License – Certificate IV in Property Services (Real Estate)
Requires CPP41419 – Certificate IV in Real Estate Practice AND 12 months experience AND completed experience tasks
Buyers Agents, Onsite Residential Property Managers and Business Agents will be transitioned into a full real estate agent class 2 restricted licence.
Tier 3 – Agent (Class 1)
Previously Full License – Certificate IV in Property Services (Real Estate)
Requires CPP41419 – Certificate IV in Real Estate Practice AND a Diploma AND 2 years experience AND completed experience tasks
What if I already have my Certificate of Registration and I’m working as an agent?
People that have a current COR can start now and finish the Certificate IV in Property Services Real Estate over the next 12 months and still apply to obtain a real estate licence with this qualification. There’s a great opportunity for you to save time, money and apply for your real estate agent class two licence.
What if I already have my Certificate of Registration or Real Estate Licence?
There will be changes here as we move forward, and as relevant options change, we will provide updates in bite-sized chunks. Don’t panic! Everything is fine, and there are options before, during and after the change. Call us or email to discuss these options with you.
What if I don’t have experience and I want to open up an office?
You could potentially finish the Certificate IV before the 22nd of March 2020 and apply. A person with Recognition of Prior Learning in the business units of the course could save time completing the course. We don’t recommend this option unless you have the time, will and fortitude to finish within a very tight timeframe. Call us to discuss first.
It can feel like an information overload and very confusing at times.
But each personal situation has a different solution.
Please contact me at email@example.com with your name/number and I will call you personally to attempt to remove any ambiguity and clarify your situation!
The information contained in this blog post reflects the latest advice from Fair Trading at the date of publication.
4 thoughts on “Real Estate License Changes in NSW 2020 – CPP41419 Certificate IV in Real Estate Practice”
Hi Rod, I want to open an office before 23 March 2020 and I have not worked prior as a real estate agent. Is this possible if I can finish Cert IV course, say, by 23 Feb 2020? I am confident that I can finish Cert IV by then. Thank y ou.
Hi Steven 🙂 thanks for the question
If you’re confident, then that’s an essential ingredient in undertaking any course and staying confident until you finish. Still, we must try and fully understand the facts surrounding a decision as well to make an educated or informed decision.
This is the same in real estate practice. We inform, educate and provide opinions from experience, knowledge and skills as professional real estate agents to our clients to improve their outcomes and a duty of care to customers so when they make a decision, its their decision number 1 and they have the best understanding possible of the risks to make it number 2 and the last important one, ITS THEIR decision.
We know there are risks in everything. Without risk, there is sometimes no opportunity or benefit, so it’s a natural cousin if someone wants to achieve or do something.
We usually need a compelling reason to decide and do something.
In particular to undertaking this course and relating it to your question, I would say if you’re prepared to accept the risk & knowing the extent of the risks are crucial then decide based on that. Your compelling reason is you want a real estate agent licence before the changes to these requirements impact your goals, dreams and desires for a real estate licence. We know what an agents licence allows you to do or Go to http://www.fairtrading.nsw.gov.au if you’re unsure.
What are the upsides?
What’s your context and situation?
What do you perceive as the benefit for you?
Does the reward outweigh the risk?
Do you have significant recognition of prior learning and that saves time undertaking the course?
What are the downsides?
Does the risk outweigh the reward?
Are you prepared to be responsible for the risks?
I could mention heaps of positive reasons to do the course as well Steven. The reason I’m not because that’s where you come in. You will need to be the one to decide because it will be you doing the course and enduring what hurdles will arise while you’re trying to complete the course and sometimes nothing to do with the course outside of your control.
It will be up to you to then say the following. “I can do this” or “I’ll find a way” or “I give up” or I’ll contact Rod, seek guidance and ask questions.
I don’t want anyone to give up any worthwhile endeavour, and I encourage you to see this through, and I’ll support you the best way I know. Some of the things I’ve done or achieved and I look back and say are worthwhile are as a result of pushing myself and overcoming odds rather than things that came easy to me. In life it’s all about outcomes and that’s a novel subject for most people but there’s no point doing it unless you want an outcome, finish and achieve it.
I currently have my Certificate of Registration (renewed 12/01/20) and work mainly in administration as well as sometimes working in the trust (ie. mid month, end of month, paying out tenant refunds etc.) but never the one to completely authorise and funds being paid out of the trust as the licencee in charge is always the final autho.
If I dont complete Certificate IV in Property Services or enrol and just stay as what they will call the Assistant Agent, am I still able to work in the industry and complete my job as normal or does this stop me from working in the industry until I complete the licence?
Hi Sarah 🙂
Thanks for your question and until we see the regulators final changes released on March 23rd its subject to change but i’ll provide an opinion Sarah.
Your’e working in an agency and doing what agents do pre 22rd of March 2020 as a certificate of registration holder and can you do that after march 23rd 2020 as an assistant agent.
Your question: Do you need to get your full licence now or do you have to leave the industry?
1. you don’t have to leave the industry. Look forward to March 2024, people who was or has registered as an assistant agent in 2020,2021,2022 must complete the Certificate IV CPP41419 by then March 23rd of 2024 or forfeit their right to work as an assistant agent for 12 months. Don’t stress, more will be announced later by the regulator anytime after march 23rd 2020 and theres plenty of time to comply, but people joining agency practice in 2023 and onwards will be given one or two years to undertake the course and apply or leave the industry. The most important take out of this is keeping up to date with whats going on. for example, there are agents who have worked for years still aren’t aware of the change in 2004 let alone 2020. It’s not hard to stay in touch so subscribe to email updates for agents at the regulator website in your state or territory and read them.
Administrative duties that support agents in property management or sales or for the person in charge of the office will not be required to be registered as an assistant agent or a class 2 agent. But it will be up to the person in charge to manage operations so employees don’t fall foul of the new laws by simply obeying their directive. No one is at fault and theres no excuses either. There will be grey areas and misinterpretation and unfortunately the buck stops with the licensee in charge but you have a duty of care to comply with the act and regulations.
Do I need one or not?
If your being directed by agency staff to generate marketing material, upload properties to the web or enter data into software on behalf of the licensee then you can without holding an assistant or class 2 license. if you are doing data entry and under administrative directive then you don’t need to be licensed as an assistant or class 2 agents. If you do analysis on behalf of agency staff in an administrative capacity then no need.
If you’re doing it on behalf of the licensee business as the property manager or sales and PM/sales support staff and interact and build a client relationship then you do need to hold a current assistant or class 2 license. In other words, if you have the lead or supportive relationship with the client and consumer on behalf of the licensee the answer is you need to be a assistant or class 2 agent. If you do the condition report or the appraisal.
Are you confused: You wont be alone…
It’s a tough one to manage when small business needs invariably mean everyone does a bit of everything in the office to get the job done and it will be easy to cross the line between support or doing on behalf of a client / customer. Many people over the years simply get the assistant agent status and not have to worry.
The licensee is responsible to transfer the trust money from the sales or property management trust account and be satisfied all transactions are in writing, approved and funds are available in the trust account to be transferred. Property Managers can go about their business as normal, but ultimate responsibility is with the person in charge.
Your example here. Id say you shouldn’t enter data into trust records, do mid or end of month without being an assistant or class 2 agent so your’e ok to continue to do this because your registered. Your’e always doing your job on behalf of the person in charge.
These will need to be signed by the person in charge. The licensee in charge or class 1 agent can authorise a class 2 agent in writing to sign an agreement and inspection report for sales on behalf of the class 1 agent. For Property management you will need a class 2 licence to sign off on reports and agreements.
Impacts and risks:
The person in charge will have to be more active and adopt the changes aggressively into the business and manage staff across to the changes so they are not in breach by stubborn or ignorant staff.
Staff will need to report a lot more as to their activities to the class 1 agent / person in charge, so that will change behaviour and it will take time to become second nature to staff.
Job opportunities may dry up for the casual worker required for reception and over flow at open for inspections on weekends that has been filled by family or casual staff in the past
Less staff doing more
Assistant agents title isn’t all that noteworthy for clients wanting to list a property with an agency. Ive heard people say they are worried about titles on business cards. Unless the regulator says in statute law or the regulations this is what must go on your business card or information publicly available on the 23rd of March 2020 my opinion is you can call yourself Sales Representative or Property manager.
Making sure you do your CPD or other prescribed activities by the regulator. The annual CPD date for everyone will be the 22nd of March every year.
Keep a current assistant, class 2 and call 1 agent with the regulator by renewing for 1, 3 or 5 years