Can an agent, branch manager or salesperson work for more than one company?
Every agent, branch manager and salesperson must be individually licensed under the 2008 Act. It is an offence to employ or contract any person who is not licensed or not exempt from the requirement to be licensed.
In principle a person could contract with more than one company to work as an agent, branch manager or salesperson, although conflicts of interest could arise. Whether or not a company chose to engage a person who is also working for another company would be a commercial decision for the company.
Does the 2008 Act still include effective control requirements for branch offices?
The 2008 Act does not carry forward the effective control provisions of the 1976 Act. It is for companies to determine how they will manage their business, including branch offices. Similarly the Act no longer includes specific requirements for remote located salespersons.
The Act does require that all salespersons must be properly supervised and managed by an agent or branch manager. Only agents can practice on their own account.
If a branch office does not have to be under the effective control of a branch manager, what is the purpose of a branch manager's licence?
While the 2008 Act has retained branch manager as a class of licence, there is no specific requirement that branch offices must be under the effective control of a branch manager.
Companies may still choose to use a branch manager in a supervisory role as part of their management structure. The Act requires that the work of a salesperson must be properly supervised and managed by either an agent or branch manager.
This means that the agent or branch manager must ensure that the salesperson's work is competent and that their work complies with the requirements of the Act.
What about remote located salespersons?
The 2008 Act does not include any specific provisions regarding remote located salespersons, as was the case in the 1976 Act. All salespersons must be properly managed and supervised by an agent or branch manager but companies are free to make their own arrangements as to how this is done, so long as these arrangements do not breach the Act, regulations or practice rules, including the Code of Professional Conduct and Client Care.
Will agency companies be able to be copied into the application process for their salesperson's licence renewals?
Because licence renewal is the responsibility of the individual licensee, companies or agents that employ or contract with branch managers or salespersons will not be involved in the renewal process, as was the case for certificates of approval issued under the 1976 Act. Companies can check the public register to determine whether a person holds a current licence.
Companies or agents may also wish to remind their salespersons of the need to be licensed, to renew licences, and to be aware of the consequences of not doing so. It is an offence to employ someone as an agent, branch manager or salesperson who is not licensed.
Companies could also consider including provisions in their contracts regarding the provision of up to date information on the status of licences, or any change in circumstances that might affect that person's eligibility to hold a licence.
Will salespersons who are working as independent contractors be allowed to employ their own support staff for administrative purposes?
In principle, a salesperson working as an independent contractor could employ his or her own support staff for administrative purposes. However, if the support person carried out any real estate agency work as defined under the Act, they would need to be licensed. If they were licensed as a salesperson they would need to be managed and supervised by an agent or branch manager, not by another salesperson.
If support staff carried out any real estate agency work without being licensed, they would be committing an offence under the Act.
Will salespersons be required to have individual indemnity insurance?
The Act does not specify any requirements to have individual indemnity insurance. This is a commercial decision to be taken by licensees and companies or agents that employ them or engage them as contractors.
