Education & Training requirements
The minimum training requirements vary from state to state, but generally speaking is a short course run by the Real Estate Institute in your State plus TAFE and some private institutions. Successful completion of this course would then entitle you to become a “registered” buyer’s agent or real estate agent with the Office of Fair Trading in your state.
Further study can be undertaken through the same channels to become a “fully licensed” buyer’s agent or real estate agent, with an appropriate upgrade of licensing through the Office of Fair Trading.
If you are starting your own Buyer’s Agency, a Degree in business to aid in running your own business, including some Marketing units, would be beneficial.
In terms of training, it is essentially “on the job”. However, buyer’s agents can come from many different backgrounds – each offering their own benefits which can be transferred and utilised as a buyer’s agent. Client service or professional services experience can aid in managing clients; research and analysis can aid in finding and assessing properties; risk management can aid in managing contracts; and selling agent experience can aid in negotiating contracts. Past property investment experience can also be drawn upon.
Each State has its own laws and licensing requirements regarding property transactions, so you will need to hold a licence for the state that you will be buying property in. Generally speaking, there are two types of licences – a “registration” suitable for employees, or a “full licence” for senior employees and agency principals. The terminology may differ from state to state. To get started, please make an enquiry with your State-based Department of Fair Trading.
Buyers agents require a restricted buyers agent real estate licence as minimum to operate a business in NSW. A full real estate licence is preferable however, and mandatory if you require to maintain a trust account. The minimum requirement to work as an employee buyers agent representative, under a licensed buyers agency, is a NSW Certificate of Registration. Relevant links:
The full real estate agent licence allows you to do all that you are legally obliged to when operating as a buyers agent, including but not limited to:
- own or manage a real estate agency (REBAA members focus on representing property buyers)
- buy, exchange or rent houses, businesses, land or any interest in these
- negotiate for the buying, exchanging or renting of houses,
- businesses or land
- show property to potential buyers
- inspect and assess property for sale (on behalf of a third party) or rent
- manage an apartment complex
- operate a trust account on behalf of buyers
- Complete Certificate 4, which is the full course
- Complete 12 months practical experience within 3 years of applying for the licence
- Relevant links:
The minimum requirement is a Certificate IV in Property Services (real estate) to obtain registration and work as a buyers agent representative (or sales representative) for a fully licensed agent;
A Full licence (Registered Land Agent) is required if you wish to open your own agency (buying or selling) with a Complete Diploma of Property Services (Agency Management) required.
Applicants for an individual licence must:
(a) be at least 18 years old;
be a person of good character and repute and a fit and proper person to hold a licence.
(c) have access to sufficient assets and financial resources enabling them to comply with all the requirements of the Act;
(d) understand fully the duties and obligations imposed upon agents by the Act. Relevant links:
A full real estate agent licence is required in Tasmania in order to transact in property whether buying or selling property.
Qualifications for Property Agents
Property agents are required, under Division 2, Sections 64-66, of the Act, to have qualifications before conducting a business as a real estate agent, property manager, or general auctioneer, or being employed by a real estate agent, or property manager.
The qualifications are primarily: –
Real estate agent (individual) – two years’ full-time experience as a property manager or property consultant during the previous five years and the prescribed educational qualification of a Diploma in Property (Real Estate) awarded by a registered training organisation.
Real estate agent (company) - must have at least one director who is a real estate agent.
Character and Repute
In order to satisfy the Board that he or she is a person of good character and repute the applicant must provide an original National
Police Certificate issued no more than 3 months prior to the date of lodging the application. Applicants must also provide two written references to attest to their good character, reputation and fitness to hold a licence.
Contained within the application form is a statutory declaration which requests applicants to disclose previous convictions, pending
proceedings and previous disqualifications among other things. The Registrar may request that an applicant attend an interview with the Board to determine whether he or she satisfies the requirements of the Act.
To apply for a real estate and business agent licence you must have passed the examinations for the following course:
Diploma of Property Services (Agency Management) CPP50307
REBAA Professional Standards
All members must be committed to certain standards as outlined in the REBAA Code of Ethics and Standards of Practice. which can be viewed in the Professional Standards section of this website.
Starting your own Buyer’s Agency business
If you are intending to set up your own Buyer’s Agency, you would need a full real estate agent’s license – both for yourself as an individual, plus an agency license for the company you will operate under. If you are currently a “registered” real estate agent, then you would need to undertake further study and apply to become a “fully licensed” real estate agent. The Real Estate Institute in your State plus TAFE and some private institutions run training courses.
In setting up your Buyer’s Agency, you would need to identify your market of buyers to tap into, and develop your own client service methodology, which would define your business offering. One of the main differences between a selling agent and a buyer’s agent is the reporting to clients – there are a lot more written reports provided to buyers, than to vendors, essentially to mitigate of risk.
As with any new business, you would want to put together a Business Plan covering market entry and growth strategies; service offerings and pricing model; market research; marketing plan; operations plan; management plan; financial plan and analysis; risk analysis; research and development. This is particularly important if you are planning to approach the bank for seed capital.