Changes in law to the NSW Property and Stock Agents Act in 2022 & how they affect Property Management 

The following legislative changes relating to Property Management :

• Clarifying that assistant real estate agents performing business agent or on-site residential property management functions are prohibited from carrying out certain duties. This aligns with rules that apply to assistant real estate agents in sales and leasing.

• Exempting real estate agent and assistant agents from having to disclose material facts listed in the Regulation in relation to residential tenancy agreements (section 47). This means agents will have to tell prospective tenants about the material facts set out in the Residential Tenancies Regulation 2019. To learn what tenants must be told, please see what tenants must be told on the starting a tenancy page.

• Removing the collection agent clauses allowing the Secretary to issue guidelines when agents use collection agents to collect rent.

• Clarifying the exemption from obtaining professional indemnity insurance (section12(6)(b)). https://www.fairtrading.nsw.gov.au/__data/assets/pdf_file/0005/1099004/Professional-indemnity-insurance-information-sheet-September-2022.pdf

When will these property management legislation changes be enforced?

NSW Fair Trading is giving agents a six-month transition period (1 September 2022 to 1 March 2023) to adjust to the changes. See their enforcement approach during this period set out in a Statement of Regulatory Intent.

Handy links

Property & Stock Agents Regulation 2022 under thee Property & Stock Agents Act 2002

https://legacy.legislation.nsw.gov.au/regulations/2022-501.pdf

Managing a Property - NSW Fair Trading 

https://www.fairtrading.nsw.gov.au/housing-and-property/property-professionals/managing-a-property

What tenants must be told when starting a lease

https://www.fairtrading.nsw.gov.au/housing-and-property/renting/starting-a-tenancy#what

Disclosing Material Facts & Misrepresentation Issues

https://www.fairtrading.nsw.gov.au/housing-and-property/property-professionals/working-as-a-property-agent/misrepresentation-guidelines

Property & Stock Agents Regulating Website

https://www.fairtrading.nsw.gov.au/housing-and-property/property-professionals/changes-to-property-and-stock-agents-laws

NSW  Fair Trading Information on Renting for Landlords, Tenants & Agents

https://www.fairtrading.nsw.gov.au/housing-and-property/renting