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​Four-day real estate licenses: Should you be working with these agents?

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Australian Broker | 10 Dec 2013, 08:00 AM Agree 0
The real estate industry has called for stricter education requirements amid rising levels of fraud and qualifications which can be completed in a matter of days.
  • Todd | 10 Dec 2013, 09:04 AM Agree 0
    Like all accreditation courses, they don't teach you to sell or morals… they simply teach you how to protect yourself from being sued. So if the course is 4 days or 1 day, its irrelevant. It's the course content that requires review.
  • Dave Robinson | 10 Dec 2013, 09:08 AM Agree 0
    “If someone has gone through the school of hard knocks instead of tertiary education they can still excel in their field. I’m not as concerned with minimum standards, although it does have flow on effect… for me when I’ve build relationships with people it’s not so much what qualifications they have as the quality of the person and their shared value.”

    A view not shared by the MFAA or ASIC. Your are on a life boat all on your own with that thought process and it has a hole in it.
  • Country Broker | 10 Dec 2013, 09:30 AM Agree 0
    This industry has been getting away with poor standards across all the states for years , it is having serious effects on both vendors and purchasers . IT IS TIME for the federal government to take the imitative and create a national regulation standard and licencing such as the mortgage and finance broking industry has gone through. This is the only way to get this seriously flawed industry to have enforceable standards .
  • Simon | 10 Dec 2013, 09:35 AM Agree 0
    A 5 year or a 5 day course will not prevent trust account fraud. It has nothing to do with what you are being taught. Committing fraud comes down to someone's character, not what they are taught in a course.

    “It’s just a farce. The requirements for a lawyer are four to six years of university. Real estate agents are dealing with just as many pieces of legislation and in most cases dealing with more money going through their trust accounts so they’re opening things up to fraud.
  • Positivity | 10 Dec 2013, 09:40 AM Agree 0
    I was offered a Cert IV in real estate for a few thousand dollars and a few days of face to face tuition..

    I ended up enrolling in TAFE - OTEN distance Cert IV in Property Services FOR $570.

    THE COURSE SEEMS ABSOLUTLEY COMPREHENSIVE.

    I'm going to lose about 20 saturdays - but I'll know my stuff by the end of it.
  • Jeff Mazzini | 10 Dec 2013, 09:45 AM Agree 0
    National regulations is the only way to properly reform this industry as each state has their own rules and regulations. Yet its hard to get them to hand controls over.
    Many may not know but the old finance broking regulations introduced into WA where actually a cut and paste of the Real Estate Regulations.
    Perhaps its time to return the favour and use the ASIC regulatory guidelines to now regulate property and the advice process like has happened in the Credit Industry. Property is the last product that ASIC does not recognise via regulations, yet it is the one most people need protection in.
  • Coast Broker | 10 Dec 2013, 09:54 AM Agree 0
    Some Real Estate Agents should be trained in Morals first before anything else.
  • Steve H | 10 Dec 2013, 10:00 AM Agree 0
    You cannot compare a law degree to a career where there is only one contract,. . . if people can get the jist in 4 days , then go for it
  • Papery | 10 Dec 2013, 10:24 AM Agree 0
    So its time to take this ol' chestnut for another spin....Of course there needs to be regulation & education. Most RE Agents have no idea how to handle the basics like Privacy & Spam-style marketing, when 'opinion' becomes 'advise' & Disclosure.
  • AJ | 10 Dec 2013, 11:37 AM Agree 0
    Brokers concerned about poorly trained real estate agents....what about the other way round? Just sayin!
  • dpathle | 10 Dec 2013, 01:43 PM Agree 0
    So.... a family of four after 5 years of home ownership have now realised that they are bankrupt because they purchased a house that they could not afford. We should blame the R/E agent that sold them the home because the R/E agent completed a course in 4 days? If the rest of the industry that helped that family buy the home in the 1st instance were all ethical, then shouldn't that trump any R/E agent with less than a months experience? You all need to take a long hard look at everyone else involved in the transaction and realise that someone could have stopped it. Regulation is not required to be imposed on the R/E industry as much as it is needed on all of the other parasites that feed of the industry with no morals or ethics. So what if the person was convinced by the eager young R/E agent that the overpriced home is perfect for them..... it is up to you to have the guts to tell them that they can't afford it.
  • Joe | 10 Dec 2013, 09:59 PM Agree 0
    I know a Real estate Agent that tells people she did the full 5 year course in 5 months. In fact she paid someone enough money and the answers were given to her. If you know the right people and are willing to pay, you can have your licence in just a few days.
  • Rosemary Johnston (PIAA) | 11 Dec 2013, 08:04 AM Agree 0
    National regulation of real estate law would also be useful. Technically a person can sell Victorian real estate in Queensland to Queenslanders without a Victorian real estate licence as they are outside that jurisdiction. This makes it easy for spruikers to work around the laws rather than gives consumers the protection and regulation they expect.
  • Papery | 11 Dec 2013, 11:53 AM Agree 0
    For Dpathie....
    Im sure a lot happened to this family in the five years of property ownership...some good some bad.... You'd get a better bang for your argumnet if the family went bust inside of 6-12 months
  • dpathle | 11 Dec 2013, 01:42 PM Agree 0
    Papery - and some have, it just took them 5 years to realise it. $500k purchase 2008 at a 97% lend with the 3% and fees coming from parents 6 months earlier (oficially a gift, but the kids said that they would pay them back in 12 months - yeah right). Serviceability scrapes through based on income to 9mth pregnant wifes salary (ie.. about to go on maternity leave) and for some reason the broker forgot to mention the credit card limit of $20k with a $20k debt at another bank. Still blaming the R/E agent with 4 weeks experience Papery?
  • Papery | 11 Dec 2013, 02:15 PM Agree 0
    Dpathie...
    so your scenario here is really about Fraud, misrepresentation & so many breaches under what we now know as NCCP....nothing to do with the sales process...unless of course the ppty sale & finacnce were orchestrated by the RE & Broker in collusion. If what you are saying is true, sounds like this client has a good case to go to COSL/FOS/ASIC with. Throw the book at the Broker by all means. This is the type of broker who needs to be exposed & prosecuted.
  • dpathle | 11 Dec 2013, 02:57 PM Agree 0
    Broker never realised that she was 9 mths pregnant (just thought she was tubby) and client knew not to say anything about their credit card from prior interview with a different broker 2 days earlier. This was a "made up" scenario by me, but one that I'm sure would be quite common out there and when it all goes wrong, who do you blame? Seeing a guy at the moment who got a loan from a bank at age 63 S/E builder (he is now 72) for a $500k construction loan over 30 years. Has already paid $450k in principal& Interest and the debt is still $550k. Pure asset lend originally, but the bank are only blaming the client for the mess he is in. How many loans have you all written for folks, putting them in debt for 30 years with total cost per annum (to buy PPR) is say north of $50k pa, but they are leaving a rental property of $20k pa that they have been in for 5 years and they have only saved (genuinely) $25k in that time. Don't blame R/E agents for the mess a lot of home owners are in currently, that's just a cop out..... look inwardly please and you may not like what you discover.
  • RYMM | 11 Dec 2013, 05:36 PM Agree 0
    Interesting - it only takes 5 days to do a diploma to become a mortgage broker..... And what a broker does is far more complex than selling a house!!
  • Marty | 12 Dec 2013, 08:11 AM Agree 0
    Everyone needs to calm down. We do not need more bloody regulation. You can't regulate away fraud and poor ethics. Been around since Jesus was opening bowler for Jersulalem.
  • Joe | 12 Dec 2013, 03:38 PM Agree 0
    Papery / Dpathie... Quite often, the broker refers the client to the property marketer, commonly receiving $5000 referral fee. This is usually not declared to the client. Therefore it is in the best interest of the Broker that the property deal goes ahead, regardless of whether it is good or not. A conflict of interest is not good for the client.
    Marty - yes there is fraud, and wherever large commissions are available, such as $30K hits to property marketers you will find it. Too many turn a blind eye to it or can't gather enough evidence to stop it. Someone needs to continue the fight / regulation enforcement.
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