The ACT Government has recently introduced sweeping reforms to the regulation of the real estate industry.

The new laws, which came into effect on 1 July 2022, are intended to bring the ACT into uniformity with other jurisdictions and implement the National Real Estate Training Package.

Agent licences are now divided into two classes: Class 1 and Class 2.

Agents that act as licensees-in-charge must now hold a Class 1 licence and can be responsible for the day-to-day management of only one business. A Class 1 licence requires you to have completed either a CPP51122 or CPP51119 Diploma of Property (Agency Management) and have at least two years’ experience as a licensed agent.

If you are a real estate agent, a stock and station agent or a business agent, you must now hold at least a Class 2 licence. A Class 2 licence, depending on the kind, requires qualifications such as a CPP41419 Certificate IV in Real Estate Practice, and at least 12 months experience. Depending on your current qualifications, to validly hold a Class 1 or Class 2 licence may require you to undertake additional training.

If you were a registered salesperson, you are now considered an ‘assistant agent’. If you are an aspiring assistant agent, you must demonstrate additional training and experience in order to become registered. The specific requirements will vary depending on the type of registration you are pursuing. All assistant agents will eventually be prohibited from entering into agency agreements and handling trust monies.

If you are an aspiring salesperson (now assistant agent) but were seeking to take the unqualified salesperson registration pathway – this is no longer available to you. If you are currently operating as an unqualified salesperson, you can do so until 31 October 2023. From 1 November 2023, you must be registered as an assistant agent and hold the relevant qualifications.

If you are involved in land auctions, there is now a specific auctioneering licence required to conduct an auction for land. This is the equivalent of at least a Class 2 licence. There may be other restrictions on your ability to conduct auctions depending on the licence you currently hold.

It is important that you check the ACT Government website to confirm how these changes impact you according to your specific circumstances.

Visit  Frequently Answered Questions to find out about important dates you should be aware of. Understand precise  qualifications and experience that is now required to hold the various licences in the ACT.

Non-compliance with these laws is an offence, punishable by sizable fines. If you are unsure about your obligations, please contact our Canberra Property Lawyers on 02 6279 4444 and we will be happy to advise you.