REIA pushing for increased standards of real estate agent education
Real estate industry leaders are pushing for higher educational standards for agents in a bid to improve professionalism within the sector.
The Real Estate Institute of Australia is spearheading the development of a national standards of practice, which it hopes will tie in with state and territory-based lobbying efforts to increase the educational qualifications required to work in real estate.
REIA president Malcolm Gunning said the professional standards would be developed over the next 12 or 18 months and voluntarily adopted by its state and territory member real estate institutes. The push was part of a wider commitment to increasing the educational standards of everyone working in real estate, he said, which would help address issues such as underquoting.
The REIA are working on developing a national professional standards for agents. Photo: Paul Jeffers
“Lifting educational standards is a consumer benefit,” Mr Gunning said.
“One of the problems with underquoting during the property boom in Melbourne and Sydney, it was blamed very much on the agents.
“In some cases, that was partially correct … but when you have got a hot market, research readily available, and an informed vendor, then you get agents who have got as much as three of four days of training or less thrown into the mix – what could go wrong?”
Industry leaders say increased training for real estate agents would be of a benefit consumers. Photo: Craig Sillitoe
The low barriers to entry into real estate has long been a bugbear for Real Estate Institute of New South Wales president John Cunningham, who has been lobbying government about it for the past decade.
However that sustained effort – which encompassed about eight different NSW ministers for fair trading – bore fruit last year with the NSW government announcing the Real Estate and Property Services Industry Reform Paper.
The proposed reforms include significantly increasing the certificate of registration educational requirements, introducing legislated Compulsory Professional Development (CPD) for agents and licensees, and regulating a pathway to a higher qualification for anyone who enters the sector.
Under the proposed real estate industry reforms, NSW agents would have to undertake compulsory professional development. Photo: Cole Bennetts
“Another reform is a pathway to your licence, so once you start the process with your certificate, you must complete your licence within four years,” he said.
“That’s a massive upgrade – so if you come into this business you’ve got to commit to constantly improve your standards and your education and we’ve developed a very creative way to do that.
“The government’s proposed reform agenda also includes more stringent checking of training providers, including ensuring that students who enrol in online training programs have actually completed the work themselves.”
John Cunningham from the REINSW has been a long-time campaigner for increasing the required training of real estate agents. Photo: Supplied
Mr Cunningham believes the educational reforms will improve the quality of people attracted to the sector and will also ensure that consumers are receiving the service they deserve.
“When you’re dealing in real estate, where you’ve got the biggest asset class in the country, it needs to be taken more seriously and that’s what we’ve decided to do,” he said.
“The industry will then appeal to people who are going to take it seriously and give it and their clients the respect that they deserve, rather than seeing it as a fast buck opportunity …
Real Estate Institute of Queensland chief executive officer Antonia Mercorella said that not only should the barriers to entry into a real estate career in Queensland be higher, but the ongoing requirements for professional development should be stricter.
“There are simply not enough checks and balances in place to protect consumers in this area and we have urged the state government to tighten this area of legislation,” she said.
“Given how easy it is to enrol in a course and obtain a licence, we believe that ongoing compulsory CPD would help protect consumers by ensuring real estate professionals maintain their professional knowledge and keep abreast of legislative and regulatory changes in the industry.”
Real Estate Institute of Victoria president Joseph Walton said there continued to be a genuine need for higher educational standards in Victoria, in particular the entry-level training for Agent’s Representatives.
“Given the changing environment estate agents now work in, the REIV considers ongoing education and training of agents is essential with continuing professional development a component of REIV membership.”
