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SA - New reforms will be introduced regarding the management of trust monies and mandatory training for property managers

New laws for property managers will increase protections for landlords and tenants and provide greater transparency in property management transactions. The new laws will only apply to people employed as property managers, and not people who manage properties for themselves or a relative.

From 30 April 2018 certain compliance and enforcement provisions will commence under the Land Agents Act, providing Consumer and Business Services (CBS) with more power to take action against unprofessional behaviour - such as the misuse of trust account money and not providing 'direct' supervision to registered 'trainees' that are subject to training conditions.

By 28 September 2019 all employees of a registered land agent who manage residential or commercial properties must have completed specific property management training and be registered as a property manager with CBS. The lengthy transition period aims to provide property managers' sufficient time to complete their training before registration becomes mandatory on 28 September 2019.

CBS will start receiving applications for property manager registrations from 1 February 2019.

Qualification requirements

Requisite training approved by the Commissioner for registration as a property manager:

  1. CPPDSM4007A - Identify legal and ethical requirements of property management to complete agency work
  2. CPPDSM4009B - Interpret legislation to complete agency work
  3. CPPDSM4010A - Lease property
  4. CPPDSM4011A - List property for lease *
  5. CPPDSM4013A - Market property for lease *
  6. CPPDSM4015B - Minimise agency and consumer risk
  7. CPPDSM4016A - Monitor and manage lease or tenancy agreement *
  8. CPPDSM4017A - Negotiate effectively in property transactions
  9. CPPDSM4020A - Present at tribunals *

Land agents will not be required to undertake any further training.

Sales representatives that wish to undertake property management will need to be additionally registered with a condition on their registration card. There are four units that sales representatives are not currently required to complete (these are marked with an asterisk above) *

Training providers can now start delivering training with certainty over the approved qualifications the Commissioner will accept. This provides property managers over 18 months to complete the necessary training.

Property managers will also be required to meet minimum probity requirements - however, police clearance certificates must be current at the time of application. You should wait to apply for a certificate until after you've completed your training and CBS starts accepting applications for registration in February 2019.

Next steps

Some provisions will commence in April 2018 - these primarily relate to increased compliance and enforcement to further empower the Commissioner and include:

  • trust account breaches, with new penalties up to $100,000 and /or 5 years imprisonment
  • increased penalties for unregistered sales representatives and failing to properly supervise 'trainees'
  • 'trainee' registrations subject to conditions for training will be required to be under 'direct' supervision
  • extending the limitation of time for prosecutions to five years without the need for Ministerial approval.

CBS will also be seeking to limit the 'trainee' registration to 12 months. This is anticipated to commence from September 2019 and 'trainees' that have not completed the required training are encouraged to do so before then.

Registration requirements for the real estate industry will not change until 28 September 2019 - however, property managers must complete the necessary training, apply and be granted a registration before this date to continue work.

CBS will start accepting applications for registration from February 2019. Property managers continuing to work unregistered after 28 September 2019 (and their employer, the registered land agent) may face penalties of up to $20,000.

Property managers are encouraged to plan ahead to ensure completion of the necessary training before mandatory registration. This means that CBS must assess and approve your registration by 28 September 2019 - lodging an application with CBS before this date will not allow you to continue work.

Sales representatives should consider if they need to be additionally registered as property managers and make arrangements to complete the four additional units, if necessary. Sales representatives that have completed a full Certificate IV may only be required to undertake one additional unit.

Land agents should plan ahead and support their employees to undertake training over the next 12-18 months to ensure they and their business are compliant with the new requirements before mandatory registration.

CBS will continue to engage regularly with the real estate sector as we move towards mandatory registration on 28 September 2019.

Source CBS

 







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