New Code of Conduct: Real estate bulletin issue 122 (October 2016)
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3 October 2016
A review of the Code of Conduct for Agents and Sales Representatives 2011 (old Code) under the Real Estate and Business Agents Act 1978 (the REBA Act) has been completed following a consultation period held in April and May of this year that provided industry members with the opportunity to make comment on the proposed changes to the Code.
The Code of Conduct for Agents and Sales Representatives 2016 (new Code) is to be gazetted 4 October 2016 and will take effect on 5 October 2016.
A two-month transition period is in place. During this period, if an agent or sales representative fails to comply with the new Code, but does comply with the old Code, they will not be taken to be in breach of the new Code.
Agents should make it a priority to revisit their business practices and procedures during the transition period, in order to implement any changes necessary to comply with the new Code. The two-month transition period also provides an opportunity for agents to educate themselves and their staff about the requirements of the new Code.
The redrafting of the rules brings the new Code in line with modern legislative requirements and includes new rules requiring agents and sales representatives to:
- disclose to the purchaser if they are related to the vendor;
- where an agent gives an opinion as to a property’s current market price, the agent must provide information supporting that opinion;
- communicate all offers including verbal offers to their client; and
- comply with any fiduciary obligations that may arise in their role of agent.
It is important to note that despite the introduction of a new Code, the underlying duties and responsibilities for industry members remain the same.
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