ࡱ> FHEu'` M2bjbj jx,*  $ ???Ph?<? Y@:@@@@AAAXXXXXXXZhL]X AAAAAX @@XADADADAp @ @XADAXADAD6R T@x@ պR?B|S|oU<X0YOT ^BN ^8T ^ TADAAAXXCXAAAYAAAA D? ? X   EMBED Microsoft Drawing  ESTATE AGENTS COUNCIL ANNUAL REPORT 2012 - 2013 FOREWORD The Estate Agents Council (the Council) is a statutory body established following the 1994 amendments to the Estate Agents Act 1980 (Vic) (the Act). The Minister for Consumer Affairs has responsibility for the Act and accordingly the Councils functions and powers are subject to the direction and control of the Minister for Consumer Affairs. The Council reports to and advises the Minister for Consumer Affairs on: The operation of the Act and its regulations. The efficiency and effectiveness of industry regulation under the Act. Services provided by estate agents. Industry developments. The Council also undertakes research projects and makes recommendations to the Minister for Consumer Affairs on applications for grants from the ɫƵn Property Fund (the VPF). MISSION, VISION AND FUNCTIONS The Councils Strategic Plan articulates its vision as: A fair real estate market place in which the public has confidence, where the interests of vendors, buyers, tenants and property owners are balanced and all segments of the industry are well serviced. The primary work of the Council as detailed in section 6B of the Act is as follows: Monitor the operation of the Act and the regulations; Assess the efficiency and effectiveness of regulation of the real estate industry under this Act and the need for further regulation or alternatives to regulation, such as deregulation or co-regulation; Monitor developments in the real estate industry generally; and Advise the Minister for Consumer Affairs on any of the aforementioned matters, respond to issues referred to the Council by the Minister and make recommendations relating to the applications of grants under section 76 of the VPF. OBJECTIVES To ensure its perspective and practical expertise in the real estate industry is reflected in its endeavours. Promote appropriate standards of conduct and competency for people and entities engaged in the real estate industry. Assist Consumer Affairs ɫƵ (CAV) to educate consumers and industry on their rights, ɫƵ and changes to the law. Monitor emerging trends and developments in the real estate industry marketplace. To provide the Minister for Consumer Affairs with advice; Add value to the policy debate. Understand the needs of and represent the diversity of the real estate industry. Monitor the operation of the Act and the regulations. Make recommendations to the Minister relating to the applications of grants under section 76 to the ɫƵn Property Fund. Consult with consumer and industry stakeholders. Regularly review objectives, progress and improvement required to achieve strategic goals. MEMBERSHIP For most of the financial year 2012 2013 there were seven members of the Council. Section 6 of the Act sets out membership details for the Council: Three members of the real estate industry who have for the previous five years been practicing licensed estate agents, two of whom are nominees of the Real Estate Institute of ɫƵ (REIV); One member who has been a licensed estate agents for the previous five years and is the nominee of the Australian Livestock and Property Association (ALPA); One member who is an Australian Lawyer of not less than five years standing; One member who is an Accountant who is a member of CPA Australia or The Institute of Chartered Accountants in Australia; Two members are to be persons who are not estate agents and are not employed in the estate agency industry or in the provision of services to estate agents. The Governor in Council appoints the Chair and Deputy Chair from the membership of the Council on the recommendation of the Minister for Consumer Affairs. Council members are appointed for up to three-year terms (with the possibility of subsequent reappointment) and are remunerated. NAMEROLEAPPOINTMENTPhillip NolanChairBarrister and Solicitor section 6(2)(c)Alistair ArmstrongDeputy ChairMember of CPA Australia section 6(2)(d)Mark OBrienMemberPerson not engaged in the real estate industry/ Consumer Representative section 6(2)(e)Barry NovyMemberLicensed Estate Agent - section 6(2)(a) CAV nomineeIan McDonaldMemberLicensed Estate Agent REIV Nominee section 6 (2)(a)Jeffrey GoleMemberLicensed Estate Agent REIV Nominee section 6(2)(a)Shane McIntyre MemberLicensed Estate Agent ALPA Nominee section 6(2)(b) CONSUMER AFFAIRS VICTORIA (CAV) The Council continued to work with and provide assistance to Consumer Affairs ɫƵ in relation to: The operation of the Council and its interaction with CAV. Amendments to section 32 of the Sale of Land Act 1962 (Vic). Amendments to the terms contract provisions in the Sale of Land Act 1962 (Vic). Review of role of owners corporation managers pursuant to the Owners Corporations Act 2006 (Vic). ORGANISATIONAL IMPROVEMENTS The Council continued to improve and streamline its process for reviewing, assessing and making recommendations in regard to applications to the ɫƵn Property Fund. GUESTS AT COUNCIL MEETINGS The Hon. Heidi ɫƵ Minister for Consumer Affairs attended the meeting of Council on 31 May 201. Senior officers of CAV regularly attended meetings of the Council during 2012 - 2013. REVIEWS AND REPORTS Draft guidelines regarding knowledge of agents The Minister for Consumer Affairs requested that the Council draft guidelines on the requirements of Regulation 6 of the Estate Agents (Professional Conduct) Regulations 2008 and Section 29B(2)(d) of the Act. The Council has provided its report and recommendations to the Minister for Consumer Affairs. National Licensing During 2012 2013 the Council continued its involvement in the review of the proposal national licence being developed under the auspices of the Commonwealth of Australian Governments. The Council is currently in the process of reviewing the Decision Regulation Impact Statement Proposal for national licensing of the property occupations.  DATA RECEIVED BY THE COUNCIL The Council receives regular reports from the Business Licensing Authority and CAV in regards to matters such as dispute resolution, case reports by the Estate Agents Resolution Services, grant updates, and licensing trends. RESOURCES The Act provides that the remuneration of members and expenses incurred by the Council while fulfilling its duties be paid from the ɫƵn Property Fund. Such payments are at the direction of the Secretary of the Department of Justice. Under the Act one of the functions of the Director of Consumer Affairs ɫƵ is to provide assistance and support to the Council. The support and assistance provided to the Council in the period under review included: Provision of Council Secretary from the CAV Corporate Support Branch. Use of meeting room facilities. Secretariat Resources printing, stationery, internet, phone and facsimile facilities. Providing the Council with briefings on various issues, ɫƵn Property Fund grant application evaluations and monthly reports. Provision of advice and administrative support regarding Freedom of Information requests related to the Council. Printing and distribution of the Council Bulletin. Infrastructure for EAC website. COUNCIL SECRETARY Secretarial assistance to the Council was provided by Maria Maikousis, Senior Corporate Services Co-Ordinator, from the Corporate Support Branch of Consumer Affairs ɫƵ. ESTATE AGENTS COUNCIL BULLETIN Copy of bulletins issued by the Council are available at the Council's website. See details below. VICTORIAN PROPERTY FUND: GRANTS MADE PURSUANT TO SECTION 76 OF THE ESTATE AGENTS ACT 1980 The VPF is established by section 72 of the Act and consists of among other monies interest received from Estate Agents Trust Accounts. The Act authorises the Minister for Consumer Affairs to expend excess monies from the ɫƵn Property Fund for the various purposes detailed in section 76(3) of the Act. Under section 76 the Minister for Consumer Affairs is required to consult the Council before applying monies from the fund. During the period covered by this report the Council considered the following applications for grants from the VPF. Grant recipientValue approved by the Minister for Consumer Affairs (excl. GST)Description of funded programDirector of Housing$18,082,000Accommodation Options for Families 2013-14 to 2016-17Rural Housing Network$1,000,000Mooroopna West Affordable HousingHousing Choices Australia$550,000Affordable & Disability Housing 2013-14ɫƵn Women's Housing Association (trading as Women's Property Services)$600,000Social Housing for Women in CheltenhamHeritage ɫƵ$1,500,000Repair and Conservation of ɫƵ's Architectural Heritage 2012-13 to 2014-15Department of Primary Industries$755,454Electricity Safety Assistance SchemeTotal$22,487,454 MONITORING FUNCTION The Council continued to monitor numerous issues including trust account practices, compliance and enforcement, concerns around property management and kept abreast of developments on the national agenda. In addition the Council has provided feedback during the consultation around various new and remade pieces of legislation. Most important issue in 2012 - 2013 - National licensing The Council continues to monitor the national agenda, in terms of licensing, conduct provisions and overall impact on the legislative framework. STRATEGIC PLAN The Council is due to review its strategic plan in 2014. CONCLUSION The Council considers that its 2013 - 2014 agenda will include the following: Monitoring the operation of the Act and the efficiency and effectiveness of the real estate industry regulations. Analysing the legislative framework which regulates the conduct of estate agents and how this will be impacted by the changes to licensing arrangements at the national level. The Council looks forward to continuing to advise the Minister for Consumer Affairs on developing issues, responding to references and providing recommendations on ɫƵn Property Fund grant applications. The Council welcomes the opportunity to work with the Minister for Consumer Affairs, CAV and industry and consumer stakeholders to achieve our common goal of a robust and equitable ɫƵn real estate sector, which is vital in the challenging times ahead. 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