CPD Topic 1 - Real Estate Reforms

Overview of main reforms

1.1  Identify the key changes introduced as part of the 2020 reforms, including but not limited to:

1. qualification and training requirements (including career   pathways and CPD)
2. Fair Trading’s enhanced compliance powers
3. prescribed ‘material facts’ and agents’ disclosure   obligations
4. the different classes of licence (class 1, 2 or certificate of registration) and types (real estate, strata, stock and station)
5. the functions permitted under each licence class and type
6. licence types and functions (real estate, strata, stock  and station) including the consolidation of former licence categories into the real estate licence
7. the requirement for the licensee in charge to authorise trust account withdrawals, including reforms to ensure greater accountability over management of trust money.

Overview of assessment

Completion of this compulsory CPD topic is to be assessed through demonstration of knowledge about the new legislative and regulatory requirements. Written questioning and responses are required to assess the candidate's underpinning knowledge and to provide supporting evidence of competence.

Critical aspects for assessment

A person who demonstrates competency in this topic will:

• understand the different licence classes and types
• understand the related functions permitted by law for each class and type
• be aware of their CPD obligations, and
• be aware of the changes to the operation of trust accounts.

• CPD requirements will start when the Amendment Act commences, so the ‘CPD year’ will be from March 2020 to March 2021.
• It will take one year from the commencement of the reforms for all those currently nominated as a licensee in charge to be issued with the new Class 1 licence with the new CPD conditions, as they will do so on their first renewal post-commencement.
• Accordingly, Class 1 licenses will be required to complete business skills CPD topics from March 2021 onwards.

CPD obligations for class 1 licence holders — real estate agents and strata managing agents

• Class 1 real estate agents and strata managing agents must complete at least 9 hours of CPD activity in each year, including:

a) 3 hours of compulsory CPD topics and
b) 6 hours of elective CPD topics, which must include 3 hours of business skills topics

• CPD obligations for class 1 licence holders — stock and station agents

a) 3 hours of compulsory CPD topics and
b) 3 hours of business skills topics

• CPD obligations for class 2 licence holders — real estate agents and strata managing agents

The holder of a real estate and strata management agent’s licence must complete at least 6 hours of CPD activity in each year,
including:

a) 3 hours of compulsory CPD topics, and
b) 3 hours of elective CPD topics

• CPD obligations for class 2 licence holders — stock and station agents

The holder of a stock and station agent licence must complete at least 3 hours of compulsory of CPD activity in each year.

• CPD obligations for certificate of registration holders — assistant real estate agents and assistant stock and station agents

The holder of a certificate of registration as an assistant real estate agent or an assistant stock and station agent must complete at least 3 units from the CPP41419 Certificate IV in Real Estate Practice in each CPD year.

• CPD obligations for certificate of registration holders — assistant strata managing agents

The holder of a certificate of registration as an assistant strata managing agent must satisfactorily complete at least 3 units from the CPP40516 Certificate IV in Strata Community Management in each CPD year.

• CPD obligations for certificate of registration holders — assistant stock and station agent with stock-only condition

Assistant stock and station agents who have requested a condition on their certificate of registration restricting them to stock only, must undertake 3 hours of compulsory CPD topics each year.

[Note: this only applies to assistant stock and station agents who were stock and station salespersons at the time of the commencement of the reforms and who have elected to have a condition placed on their licence restricting them to stock-related functions only.] 

• Course units for assistant agents
  Assistant Agents can complete any of the units from their related Certificate IV qualification.

• Categories of CPD for class 1 and 2 licence holders
  There are two categories of CPD topics
  1. Compulsory
  2. Elective

• Compulsory CPD topics 2020-21: class 1 and class 2 licence holders

The following topics must be completed for by all class 1 and class 2 licence holders:
1. Real Estate Reforms (1 hour)
2. Rules of Conduct – as is applicable to the agent’s licence category (1 hour)
3. Risk Management - as is applicable to the agent’s licence category (1 hour)

• Elective CPD topics for Class 1 licence holders
  Class 1 licence holders must complete 3 hours of general elective topics and 3 hours of business skills topics.

Elective CPD topics for class 2 licence holders

Class 2 licence holders must complete 3 hours of elective topics drawn from the following list of learning areas relevant to the property industry:

• Property practice (sales and property management, strata and community management, stock and station agency, business sale or business broking, commercial and industrial property)
• Legislation and compliance
• Trust accounting principles and audit requirements
• Risk management
• Ethics and professional responsibility
• Communication skills and/or practice
• Business practices, management and governance
• Marketing skills and/or practice
• Marketing and quality control
• Workplace health and safety
• Property transaction legal requirements
• Industrial relations and human resource management
• Supervision requirements
• Legislation and compliance
• For class 2 licence holders, completion of one unit from the CPP50307 – Diploma of Property Services (Agency Management) is equivalent to 3 hours of elective CPD topics

Approved providers of CPD topics

• Compulsory learning topics can only be delivered by an industry association, government agency or an entity approved by the Secretary (who is defined for the time being under the Act as the Commissioner for Fair Trading).
• A list of approved providers will be included as part of or alongside this document once Fair Trading has developed the guidance and process for how providers will be recognised for CPD purposes.

• Licence and certificate holders must provide evidence to Fair Trading that they have completed the required compulsory and elective CPD topics.

[Note: Fair Trading is exploring the development of online recording of CPD completion by providers].

• Licence and certificate holders must also retain their own records of mandatory and elective learning completed.
• Certificate of registration holders must retain the statement of attainment issued by a registered training organisation for each unit completed from the relevant Certificate IV for their area of practice.
• All records must be retained by the licence or certificate holder for three years 

• The new CPD arrangements do not provide for the carry-over of points from one CPD year to the next.
• However, to assist licence holders to transition from the current to the new arrangements, licence holders can bring forward any CPD undertaken before the commencement of the reforms if the CPD was completed within the licence year immediately preceding the first renewal under the new system.
• Three CPD points under the previous arrangements will be counted as equivalent to one hour completed (not points) and the carryover
• CPD will be credited only towards elective learning requirements.

[Note: this carry-over arrangement will only be available during the first year of the new licensing system.]