What is an authority to act real estate Victoria?

POLICE CHECKS FOR FORMER SUB-AGENTS

Former sub-agents must when the business changes hands meet the same standards for police checks as other agent's representatives.  

DISQUALIFICATION OF AGENT'S REPRESENTATIVES

Agent's representatives must apply to the Business Licensing Authority for permission to continue employment if their eligibility has been automatically cancelled, because person was convicted of a specified offence, or has had an Estate Agents’ Guarantee Fund claim allowed against them, or became insolvent.  

POLICE CHECKS FOR AGENT'S REPRESENTATIVES

The Legislation relaxes the section 16(4) police-check requirements on a prospective employer of an agent's representative to:

1    Sight and retain a copy of a police check no more than six months old; or

2    Sight and retain a copy of a police check more than six months old, or a notice from the former Estate Agents Licensing Authority; and

3    Obtain from the prospective agent's representative, a statutory declaration that he has not been found guilty of a disqualifying offence; and

4    Sight, within six weeks of employing an agent's representative, a police check that is no more than six months old.  

EMPLOYMENTS OF AGENT'S REPRESENTATIVES

There is no longer a prohibition to allow an agent's representative, other than an agent's representative employed as a branch manager, to be employed by more than one agent. An agent's representative cannot, however, be employed by another agent as a branch manager.  

COMMISSION SHARING

Agents can pay the whole or part of any commission to anyone other than a licensed agent, or agent's representative as long as they disclose to the client before the client engages, the agent will share the commission.  

ADVERTISING

The Legislation regulates how agents can advertise themselves, their businesses, and advertising on the Internet.  

PURCHASE OF LISTED PROPERTIES

There are tighter controls where agents can buy a listed property by:

1    Clarifying that an agent’s application for approval to buy a property listed with that agent must be made  before signing the contract of sale and

2    Removing the agent’s defence that he acted honestly, reasonably, ought fairly to be excused, and the vendor is in substantially as good a position as if the prohibition had not been breached.  

UNIDENTIFIED PAYMENTS

Agents must deposit unidentified money into their trust account by the end of the next business day after the agent becomes aware of such a payment. If the source or intended recipient of the payment has not been identified at the end of 12 months, the agent must treat the money under the  Unclaimed Moneys Act 1962 .
 

TRUST ACCOUNT RECEIPTS

Agents must now:

1    Keep duplicate copies of receipts for  cash  payments if electronic records of the payments were made as soon as practicable after receiving the payments; and

2    Issue receipts for payments by  cheque or electronic funds transfer  if electronic records of the payments were made as soon as possible after receiving the payments and the person making the payment did not request a receipt, and

3    Retain receipts or duplicate copies of receipts for payments made by  cheque or electronic funds transfer  if electronic records of the payments were made as soon as possible after receiving the payments.
 

TRUST ACCOUNT AUDITS

Trust accounts must be audited according to Australian Auditing Standards.  

QUALIFICATIONS OF AUDITORS

The eligibility criteria for agents' trust accounts auditors is similar to the criteria for auditors of solicitors' trust accounts (i.e., membership of one of two professional bodies (CPA Australia or ICAA), or eligibility to practice as an accountant).  

ESTATE AGENTS WHO HAVE NOT HELD TRUST FUNDS

Agents who have not held any trust money must lodge a statutory declaration on a 'as needs' basis.  

CONTINUING PROFESSIONAL DEVELOPMENT

Agents and agents' representatives must undertake training, or continuing professional development as the Director specifies.  

CONSUMER PROTECTION INFORMATION

Agents and agents' representatives must give prospective clients, before the client engages the services of the agent, any information the Director specifies.

BOND CHEQUES

Agents who receive bond cheques payable to the Residential Tenancies Bond Authority can send the cheques to the Authority without having to first deposit it in the trust account.  

CONVERSION OF TRUST MONEY

The Legislation extends the offences about wrongful conversion of trust money and issuing false accounts by agents, to cover the behaviour of agents' representatives and other employees.

CONSUMER AFFAIRS VICTORIA

Consumer Affairs Victoria inspectors can require persons to produce documents or provide information for seeking court orders.  

RECOVERY OF AUDIT COSTS

The Director can recover the costs of a trust account audit from agents where the audit uncovers breaches of the trust account requirements.  

INJUNCTION RESTRAINING UNLICENSED BUSINESS

The Director can apply to the Magistrates' Court for an injunction requiring a person to cease conducting an unlicensed business.  

MANAGEMENT BY AGENT'S REPRESENTATIVES

Agent's representative cannot manage the day-to-day operations of an estate agency even where authorised to do so by a licensed agent.

NEED MORE INFORMATION

Behan Legal assists and advises on these important issues. For an appointment, call 03 9646 0344.

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