Real Estate and Business Agents and Sales Representatives Code of Conduct consultation 2016

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Property industry

Consumer Protection is seeking industry views on the final draft of the new Real Estate and Business Agents and Sales Representatives Code of Conduct 2016.

  • Status: CLOSED, Monday 30 May 2016

Background

The new code, will replace the existing Code of Conduct for Agents and Sales Representatives 2011 (the 2011 Code) and implements feedback previously received from the industry during a review in 2013

The changes make the code more relevant and appropriate to the current property market and industry practice.

Current consultation phase

The purpose of this phase of the consultation is to give industry participants an opportunity to comment and consider any practical implications before the new code commences.

Key changes

The changes in the new code include:

  • the language and format of the code, which has been updated to make it easier to read and understand; and
  • making the rules consistent, where appropriate, with the other property industry codes of conduct and the Australian Consumer Law.

There are also new rules requiring agents and sales representatives to:

  • disclose to the purchaser if they are related to the vendor – (an agent will be considered to be related to the vendor if the agent or sales representative has a controlling interest in the vendor or is a spouse, child, grandchild, sibling, parent or grandparent of the vendor);
  • provide an opinion of market price in writing and provide information to support their opinion;
  • communicate all offers to their client and not just written offers; and
  • comply with any fiduciary obligations that may arise in their role as agent.

Transition Period

The code allows agents and sales representatives a period of two months after the new code commences to comply with the obligations and duties under the code.  During this period, a licensed real estate agent or sales representative who complies with the 2011 Code but not the amended version will not have breached the code.

Previous consultation

In May 2013, the Department issued the Property Industry Codes of Conduct Discussion Paper which highlighted and sought feedback on a range of issues relating to the 1982 Code and the codes of conduct for the land valuation and real estate industries.  The majority of respondents to the discussion paper supported the codes and the need for them to be amended to provide greater detail and clarity on matters relating to licensees duties.

Ongoing consultation with the Real Estate Institute of Western Australia has occurred during the drafting of the new code.

Downloads and resources

Have your say

The consultation is now closed for comments. 

Enquiries

Enquiries can be made by calling Consumer Protection Advice Line on 1300 30 40 54 or by email.

Real Estate and Business Agents and Sales Representatives Code of Conduct - consultation draft

The draft code is available to the industry for comment and consideration of any practical implications before commencement.

Real estate code of conduct - consultation draft

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