ࡱ> BDAp)` .bjbj jpv&  $!4 NKNKNKPK<K.gL:LLLLMMMggggggg$ihl+g MMMMM+g LLDg+P+P+PMX L Lg+PMg+P+PRa 1cLL R]N<NK-NXb~ dZg0gblN~l<1cl 1c+PMMM+g+gP(MMMgMMMM...NK...NK tH!J! @g   EMBED Microsoft Drawing  ESTATE AGENTS COUNCIL ANNUAL REPORT 2013 - 2014 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 (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 from 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 2013 2014 there were eight 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)Patricia RoakeMemberPerson not engaged in the real estate industry/ Consumer Representative section 6(2)(e) 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). Licensing requirements for commercial agents. 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 Senior officers of CAV regularly attended meetings of the Council during 2013 - 2014. REVIEWS AND REPORTS National Licensing The Council continued its involvement in the review of the proposal national licensing until it was announced by the Federal Government that national licensing would not proceed. 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 Executive 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 programKids Under CoverPrevention of Youth Homelessness 2014-17$2,598,464Loddon Mallee Housing Services (trading as Haven)Sidney Myer Affordable Housing$4,000,000Common Equity HousingSt Marys Terrace Geelong Affordable Housing$3,900,000Wintringham HousingFlemington Housing for the Elderly$4,615,000Total$15,113,464 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 issues in 2013 2014 Proposed removal of licensing requirements for commercial agents STRATEGIC PLAN The Council is in the process of reviewing its strategic plan. This process should be finalised by February 2015. CONCLUSION The Council considers that its 2014 - 2015 agenda will include the following: Licensing requirements for commercial agents Underquoting Red tape reduction for the real estate industry 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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