Auctioneers’ and Real Estate Agents’ Council of Tasmania
“Royal Engineers Building” 2 Davey Street, Hobart
Phone (03) 6234 2700
Information Bulletin
Information Bulletin No. 59
30 June 2006
HALF YEARLY TRUST ACCOUNT REPORT
INFORMATION BULLETIN
Regulation 28 of “Auctioneers’ and Real Estate
Agents’ Regulations 1992” provides that general
auctioneers and real estate agents must, within one
month after 30 June and 31 December, complete and
give the Council a report, called a “Trust Account
Report”, in respect of each trust account kept by that
auctioneer or agent in the six month period that ended
on that 30 June or 31 December.
This Information Bulletin is also on the Council’s web
site and additional copies may be downloaded as
required.
Consequently, general auctioneers and real estate
agent are required to lodge with the Council by 31 July
a Trust Account Report for the period ended 30 June
2006.
That form may be accessed on the Council’s web site
www.realestatecouncil.com.au
Please note that the form does not need to be referred
to the auditor as it is for completion by each general
auctioneer, or real estate agent.
If you a problem assessing the form from the web site,
please give the Council office a call and one will be put
in the mail.
Council urges auctioneers and agents to print off, or
photo-copy, additional copies of the Bulletin for their
sales consultants and/or employed auctioneers.
NEW LEGISLATION
I advised in the December 2005 Bulletin, that the new
Property Agents and Land Transactions Bill 2005 was
passed by both the House of Assembly and the
Legislative Council in late 2005.
The first drafts of the Regulations and the Code of
Conduct for the new Act have been written and
forwarded to the Real Estate Institute of Tasmania and
the Department of Justice.
The new Act cannot, however, be proclaimed, that is
come into force, until such time as the Property Agents
Board is appointed by the government and the Board
approves the Regulations, Code of Conduct,
qualifications, etc..
ANNUAL AUDIT REPORT
Regulation 31 of “Auctioneers’ and Real Estate
Agents’ Regulations 1992” provides that general
auctioneers or real estate agent must, within three
months after the end of each year, cause an audit to
be made by an approved auditor of the trust accounts
and accounting records kept by that auctioneer or
agent in respect of that year.
“Year” means a period of 12 months ending on 30
June.
It is clear from the regulations that general auctioneers
and real estate agents must provide their trust account
records to their auditors within sufficient time for the
audit to be completed and the report lodged with the
Council by 30 September.
The Audit Report form, including Audit Check List and
Information for Auditors can also be accessed on the
Council web site www.realestatecouncil.com.au
Regulation 32 provides for an exemption to
auctioneers and real estate from having to lodge an
audit report if they lodge a declaration stating that they
did not receive, or hold, any trust money during the
audit year. That exemption declaration, or Form 10, is
also available on the Council web site.
Auctioneers’ and Real Estate Agents’ Council of Tasmania
Whereas the present Council has eight members, that
is a legal practitioner chairman, three real estate
agents/managers, three auctioneers and one from the
general public, the new Board will have five members,
that is a legal practitioner chairman, two industry
members and two from the general public.
Additionally, there is a Tribunal which will have, of
course, three members, that is a legal practitioner
chairman, one from the industry and one from the
general public. The role of the Tribunal will be to
conduct Inquiries into serious breaches of the
legislation referred by the Board.
INQUIRIES
The Council has already conducted three Inquiries
during 2006. The reasons for the Inquiries were: Inquiry One
Failure to keep trust accounts as required by the
Regulations. Licensee pleaded guilty. Fines and costs
$2,255.
Inquiry Two
Licensee had been convicted of an offence in the
Magistrate’s Court of a nature that makes it not in the
Information Bulletin No. 59
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public interest of the licensee should be allowed to
continue the activities authorised by the licensee’s
sales consultant’s licence.
The Council decided that it was satisfied the licensee
was well aware of the seriousness of the charges that
had been brought against her in the Magistrate’s Court
and by the Council. Further, that the nature of the
offence committed by the sales consultant was not
such that it was in the public interest she no longer be
authorised to carry on the activities of a real estate
licensee.
The Council determined, however, that it was
appropriate the licensee be severely reprimanded and
be ordered to pay the costs incurred by the Council in
conducting the Inquiry totalling $1,320.
Inquiry Three
Failure to comply with Regulation 49 (a) in that it was
alleged the licensee had not acted “fairly and honestly
and in a reasonable manner towards all other persons
in connection with the client’s business.”
The Inquiry was conducted as a consequence of the
Council receiving a complaint from the purchaser of a
property. She alleged that it had been misrepresented
to her that the property, which was occupied by tenants
who had approximately six months of their lease still to
run, would be available for her to occupy sooner than
the expiry date of the tenant’s lease.
doing, because the lack of information can and does
lead to misunderstandings.
Many members of the public have had no previous
experience with signing legal documents, such as an
agency agreement, or a sales contract, so it is
essential that licensees, who deal with these
documents every day, do not become “blasé” about
what they are asking people to sign, but instead
provide detailed explanations.
Think of it this way. A few extra minutes devoted to
explaining documents can create a wealth of goodwill!!
QUALIFICATION OF PROPERTY CONSULTANTS
The new “Property Agents and Land Transactions Act
2005” does not make provision for the licensing, or
registration, of property consultants or assistant
property managers. The Act does, however, provide
that a real estate agent or a property manager must,
before employing a person, ensure that the person has
the approved qualification.
My question to licensees is, “What do you believe that
qualification should be?”
Presently, the Council provides a study manual titled
“Sales Consultants Training Manual” which contains
very basic information.
COUNCIL WEBSITE
A much more comprehensive qualification course is
provided by the Real Estate Institute of Tasmania,
certainly more expensive but it provides much more
information than the Council’s manual and is
recognised as prior learning if the person wishes to
continue with their studies towards a Certificate or
Diploma.
Despite all licensees being advised in the December
2005 Bulletin that the Council has a web site from
which all forms, etc. could be downloaded the Council
continues to receive requests for this information.
The new Property Agent’s Board will, at one of their
earliest meetings, need to approve the qualifications for
property consultants and assistant property managers
before they can be employed.
We again advise that the Council’s websites are
www.realestatecouncil.com.au
or
www.auctioneerscouncil.com.au and that all application
forms are available on those websites.
What do agents and possibly consultants, believe is
best course of study for a person to enter the real
estate or property management industry? Is it just the
basic knowledge with, hopefully, that knowledge being
built on by the real estate agent, or is the more
comprehensive course conducted by the Real Estate
Institute of Tasmania?
The licensee pleaded not guilty and after hearing all the
evidence the Council’s decision was that because of
conflicting evidence it could not make a decision and
so the charges were dismissed.
COMPLAINTS BY TELEPHONE
The Council continues to receive by telephone almost
every day complaints from the public, many of whom
wish to remain anonymous, about their dealings with
real estate licensees who they prefer not to name.
In these circumstances it is very hard to give advice,
but we usually recommend that they speak to the office
principal in an endeavour to have the matter resolved.
Alternatively, we may recommend that they obtain
advice from their solicitor as to whether the complaint is
a matter for the Council, civil proceedings before a
magistrate, or possibly even the police.
What these telephone complaints tend to emphasis is
that licensees must be better communicators and
explain to their clients what is happening, what is not
happening, what they are doing and what they are not
Auctioneers’ and Real Estate Agents’ Council of Tasmania
I have no idea what the new Board will decide, but if
agents and consultants have any views on the matter,
one way or the other, please commit them in writing to
the Council and they will be referred to the Board to
assist it in making a decision.
CONTINUING EDUCATION YEAR
The Council has decided that for this year 2005/06 the
continuing education “year” will be the thirteen months
1 September 2005 to 31 October 2006 to include the
Institute’s Mini-Muster. In future the year will run from 1
November to 31 October.
Geoffrey Clarke, Council Secretary
Information Bulletin No. 59
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