Supervision Guideline implementation deadline approaching on the 1 April 2021, here are a few things you need to understand to guarantee you are being compliant!
First and foremost,
What are the Supervision Guidelines?
Licensees who own a real estate business are responsible for supervising their business properly.
Sounds like common knowledge, but the question lies in what exactly is proper supervision and who is responsible for supervising?
Section 32(3) of the Property and Stock Agents Act 2002 (NSW) states that, at a minimum, proper supervision includes the requirements to:
- Properly supervise persons engaged in the business.
- Establish procedures to ensure that the Property and Stock Agents Act 2002 (NSW) and any other laws relevant to the conduct of the business are complied with.
- Monitor the conduct of the business in a way that ensures, as far as practicable, that those procedures are complied with.
Sounds straightforward and to the point, but any licensed agent running a real estate agency knows that running a business entails you to wear many hats.
The legal framework where every business must follow through to ensure compliance itself is complex. Navigating around it and finding out where to start is difficult. And now enters the Supervision Guidelines, making it even more challenging,
Section 32(4) of the Property and Stock Agents Act 2002 (NSW) allows the Commissioner for NSW Fair Trading to issue guidelines as to what constitutes the proper supervision of the business.
Formally known as the Secretary’s Guidelines for the Proper Supervision of the Business of the Licensee under section 32 of the Property and Stock Agents Act 2002, the Supervision Guidelines sets out the minimum requirements to show compliance.
Is compliance with the Supervision Guidelines mandatory?
Yes, compliance with the Supervision Guidelines is mandatory and all Real Estate Agencies must ensure that they can demonstrate the policies and procedures, they have put in place to satisfy the obligations set out in the Supervision Guidelines.
Refusing to adhere to any part of the Supervision Guidelines establishes a failure to supervise people involved in the business properly, non-compliant. The consequences of not complying with the Supervision Guidelines has a hefty price to pay. A corporation would face up to $22,000 penalty charges while individuals would face $11,000.