Property inspection report responsibilities for agents and strata regulation released
 
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Learn about changes to property agents' responsibilities 

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From Monday 15 August, property agent responsibilities are changing, which relate to property inspection reports, commercial agency work and agency agreements.

The amendments follow consultation on the Property, Stock and Business Agents Regulation.

Over the coming weeks, any Fair Trading compliance checks will allow agents time to comform with the latest changes, and help agents to better understand them. Here, we explain how the changes affect your work.

Property inspection reports

Agents will need to make a record of certain property inspection reports and their details. When a prospective home buyer asks for a sale contract, they must provide this information to them as a one-off disclosure.

This reform is to make prospective buyers aware of reports already commissioned. This may help an interested buyer to obtain such reports more cheaply and easily.

Agents do not need to include information about particular reports if:

  • they are not aware of the report
  • they can’t reasonably obtain information about it (for example, if it has been withheld by an inspector or vendor).

Agents should refer to our Pre-purchase property inspections reports page for details. For practical assistance, read our Frequently asked questions – Property inspection report requirements for agents page.

Cutting red tape for commercial property agency work

While doing certain commercial property agency work, agents will no longer need to comply with NSW Property, Stock and Business Agents laws.

This will remove unnecessary requirements for agents providing services for experienced property investors involved in large commercial transactions. The change delivers on the recommendation made by the Independent Pricing and Regulatory Tribunal (IPART) Report in its report: Reforming licensing in NSW.

Read more about the exemption on our Commercial property agency work exemption page. Agents can also understand where the exemption applies by reading the Frequently asked questions – commercial property agency work page.

Agency agreements

Following stakeholder feedback, a ‘price offer’ term is required in agency agreements for the sale of a residential property. This brings back a previous requirement and applies to sales by private treaty. Learn more at our Property reports and commercial exemption reforms page.

 

New strata regulation released today

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The final Strata Schemes Management Regulation 2016 has now been published.

Read the final Strata Schemes Management Regulation 2016 (PDF format size: 392kb).

Comments and all submissions to the consultation on the draft Strata Schemes Management Regulation 2016 (which closed on 27 May 2016) were considered carefully to help ensure this Regulation operates effectively. 

When will this start?

The new strata laws will start on 30 November 2016. The building defect bond scheme will start later on 1 July 2017. This is so the new Australian Standard for group title building inspections can be finalised first.

Complying with the new laws

Strata schemes will have plenty of time to understand and adjust to new requirements after the reforms start.

Be aware that:

  • decisions already made and financial contributions already levied under pre 30 November laws remain valid once new laws start.
  • legal proceedings already underway will be dealt with under the former Act that was in place when proceedings began.

Next steps

NSW Land and Property Information (LPI) is due to release the final Strata Schemes Development Regulation 2016 later this year.

For more information on the changes, visit the Major changes to strata laws page of our website.

 

Strata education seminars 

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NSW Fair Trading is partnering with Strata Community Australia (NSW) and the Real Estate Institute of NSW to run education seminars around NSW on the strata reforms.

Education seminars for strata and property managers will take place from 12pm to 4.30pm:

  • 23 August - Tweed Heads
  • 24 August - Coffs Harbour
  • 25 August - Port Macquarie
  • 30 August - Newcastle
  • 31 August - Sydney
  • 1 September - Wollongong
  • 8 September - Sydney.

Tickets are $50 per person and 6 CPD Points will be awarded to strata and property managers - register now to reserve your place (seats are limited).

Fair Trading will also run a series of free public information seminars during September to November, providing owners, tenants and agents with a further opportunity to learn more about the new regulations. For more information, visit our events register.

 
fairtrading.nsw.gov.au