Major threat to Victorian commercial agent licensing

Major threat to Victorian commercial agent licensing

Posted on Tuesday, May 06 2014 at 12:18 PM

The future of commercial estate agent licensing is at risk under a State Government proposal to remove it for large transactions, according to the Real Estate Institute of Victoria (REIV).

The plan, if adopted, would leave Victorian consumers exposed to
unlicensed and untrained operators who won’t be covered by codes of conduct or
have stringent probity checks.

The proposal was first announced by the government in early January as
one of 36 red tape reduction reforms – seeking to remove the requirement for
commercial agents to hold a licence for “large commercial transactions”.

REIV chief executive officer Enzo Raimondo said the move would greatly
increase consumer risk and lower standards.

“It will be a free-for-all,” he said. “Agents dealing in commercial and
industrial transactions below a certain amount will be licensed, while others
won’t. Meanwhile, consumers will be left confused.

“The proposal will create a messy, two-tiered licensing system in this

“It’s the most illogical, ill-thought-out proposal to impact the
industry in years.

“Every other state in Australia has licensing in place to protect
consumers, yet Victoria has decided to drop licensing without a valid reason.”

Raimondo added that commercial agent licensing system is in place for a

“Licensed agents are bound by the Estate
Agents Act, Sale of Land Act, Instruments Act
and Estate Agents (Professional
Conduct) Regulations,” he said.

“These acts and regulations deliver security to those buying and selling
commercial real estate in Victoria.

“Agents also require qualifications and professional development which
further enables them to service and support those buying, selling or leasing
commercial real estate.”

Raimondo said the proposal had been developed without consultation with the

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