New South Wales property sector shake-up
The Real Estate Institute of New South Wales (REINSW) has welcomed changes to the real estate sector that will make professional indemnity insurance mandatory.
The proposed reforms will mean that all licensees under the Property, Stock and Business Agents Act are required to hold a minimum $1 million professional indemnity insurance policy as of January 1 next year.
State minister for fair trading Anthony Roberts said the proposed changes to the residential property industry will benefit homeowners with the knowledge that in the event that a financial compensation situation should occur when dealing with an agent, that insurance will be able to cover the monetary claim.
"The majority of the property industry already holds this kind of insurance, however it is essential that those who do not are brought in line with best practice standards," Mr Roberts explained.
"Given the risks associated with liability confronting the property industry, it makes sense to require the industry to hold appropriate professional indemnity insurance cover."
REINSW chief executive officer Tim McKibbin said making indemnity insurance mandatory will boost the state's real estate requirements, making it stronger, reliable and more robust.
The reforms have been welcomed by the property industry and consumers alike, giving the sector a vote of confidence in the right direction.