New trust accounting legislation comes into place on the 23rd of March 2020 for NSW. There are a number of changes to the way most will need to run their real estate offices.
Here is a breakdown of those changes and how they will affect your business.
Licensee to control trust payments
The Licensee will be the only person permitted to authorise the payment of funds from trust accounts. Under the reforms, a business can have more than one licensee in charge.
Rental income to be paid out monthly
Under the changes, all money received on behalf of the landlord under a tenancy agreement (minus any authorised expenses which must be in writing) must be paid out at the end of each calendar month.
Separate trust accounts
All agencies will now be required to establish separate trust accounts for sales and rental monies.
New Licensing Framework
NSW real estate licensing will now have three levels.
- Licensee in Charge (Class 1)
- Licensed Agent (Class 2)
- Certificate of Registration Holder (Assistant Agent)
Disclosure of material facts
It is an offence for agents to induce a person into a transaction by concealment of a material fact. The new legislation demands clearer disclosure if the property has been affected by Bush fire, flooding, crimes and asbestos.
Limits on value for gifts and benefits
Agents cannot receive a gift or benefit with a value higher than $60 if it creates a conflict of interest.
Quotes for maintenance and repairs
Under certain circumstances, agents must obtain 3 quotes for all repairs and maintenance on properties.
For further information on these changes, please visit the NSW Fair Trading page.