‘If it’s expensive to hire a professional real estate agent – wait till you hire an amateur.’
Thinking of starting your own real estate agency in NSW? Here’s how to do it right.
According to NSW Fair Trading, all applicants for a personal license must satisfy that he/she is:
- At least 18 years old; and
- A fit and proper person; according to the Fit and Proper Person Requirements 2011 (Cth).
They must also have:
- Qualifications required for the licence; and
- Paid the relevant contribution in the property service compensation fund
Similar to a university degree, there are modules and courses that must be completed before you can qualify as a Real Estate Agent.
Completion of the ‘Real Estate Agent Licence Course – CPP40307 Certificate in Property Services (Real Estate)’ is your starting point. There are 24 units that must be completed for the qualification, and students usually take anywhere between 6 – 10 weeks to complete this.
Another requirement before entering the profession is to gain experience working as an agent’s representative and working under the supervision of a licensed estate agent. This experience can be accredited, via the ‘Recognition of Prior Learning’ (RPL)* process, to substitute certain units of your study if you can prove your knowledge and skill in this particular area.
Even if you haven’t completed recognised training, this process takes into consideration any other informal training you may have had. For example, attendance at conferences or seminars and experiences gained throughout your working life may be taken into consideration.
*A non-refundable fee of $150 applies.
Getting your licence
Under the Property Stock and Business Agents Act 2002, prospective real estate agents are required to apply for a certificate of registration.
Once you have attained your educational requirements, you may lodge an Application Form with NSW Fair Trading.
Keep in mind that if your business is trading and operating outside of NSW, you need to check the Australian Business Licence and Information Service for any permits or licences required by other states or territories.
Starting your own Real Estate Agency?
Here are some useful documents that will help kick-start your own real estate agency.
Services Agreements are important as they provide an opportunity for your client to ensure they are getting the services they want, need and expect from a real estate professional.
Remember to include the following in your services agreement:
- Terms for terminating the agreement.
- Exclusive or non-exclusive representation agreements.
- Terms for amending an existing agreement – transaction brokerage.
It is important to note that according to the Property, Stock and Business Agents Act 2002, agents are required to be aware of the fiduciary duty that exists between agent and client.
A Non-Disclosure Agreement is used to safe-guard a business’ confidential information. As a real estate agent, a Non-Disclosure Agreement would be used to protect confidential information or trade secrets in both agent/client and employer/employee relationships.
Unsure where to start? Contact a LawPath consultant on 1800LAWPATH to learn more about customising legal documents, obtaining a fixed-fee quote from our largest online network of expert lawyers or to get answers to your legal questions.