The Council of Australian Government (COAG) released the proposed new national licensing standards for real estate agents. These reforms set out to create consistency with the licensing standards throughout Australia.
According to the Decision Regulatory Impact Statement, “Different license classifications, training requirements, licence periods and licence structures commonly apply. These inconsistencies impose costs on those businesses that operate in more than one jurisdiction.”
Unless you are a real estate company operating in several locations throughout Australia, it is hard to see what the benefits are from this reform.
According to The Real Estate Institute of Australia (REIA), these reforms may also have a negative impact on the consumer as they lower the educational requirements. Currently, real estate agents are required to complete a Diploma in some states, however, this will drop to a Certificate IV and auctioneer educational requirements will drop from 12 units to three under the national reform.
This may mean that future real estate agents will potentially have less knowledge of the industry and may not be able to help their clients as well as an agent already in the industry.
If your real estate agent is negotiating with another agent who is more qualified, potentially you may have a lower chance of attaining the demands you want.
The new educational requirements may make it easier for people to become a real estate agent, but if it affects their capability to complete the job competently, it is the consumer who will lose out.
The REIA is pushing for a national licensing system where real estate agents are required to complete a diploma level of education in order to keep standards high for real estate agents.
Although the COAG has created these reforms in order to help the real estate industry, it does raise the question “will everyone benefit?”