I am privileged to go behind the scenes of many real estate businesses and I notice that there seems to be some confusion between Residential Letting Agents & Real Estate Agents when completing the Form 6 Management Agreement in Queensland.
Under Part 2 – Licensee Details of the Form 6 – Management Agreement, there are three boxes that can be ticked:
- Real Estate Agent
- Residential Letting Agent
- Property Auctioneer
It needs to be noted that each one of the above is a separate licence and not the task that you do.
The mistake being made by many agencies is that they are ticking Residential Letting Agent instead of Real Estate Agent, when holding a Real Estate Agent Licence.
Here are the differences between the Residential Letting Agent and Real Estate Agent:
|Type of Licence||Authorised Activities||Restrictions|
|Residential Letting Agent||Rent out and manage units in a building complex (on behalf of the owners and body corporate).Collect rents in the complex.Operate a trust account.||Hold current body corporate approval for each building complex you manage.Have a registered office in one of the building complexes you manageHave a licensed person in charge at each place of businessAppoint a substitute licensee whenever you absent from work.Not sell any units in the complex you manage unless you hold a real estate Licence.|
|Real Estate Agent||own or manage a real estate agencybuy, sell, exchange or rent houses, businesses, land or any interest in thesenegotiate on behalf of a buyer, seller, landlord or exchanging or renting of houses, businesses or landshow property to potential buyersinspect and assess property for sale or rentcollect rent on behalf of a landlordadvertise a property for rent or sale (includes setting up signs)open up a property for inspection for sale or rentmanage an apartment complex and sell any units independently, without having to work through an established agencyoperate a trust account on behalf of sellers and buyers.||You may not auction property.|
Furthermore, the Property Occupations Act 2014 records each licence type as follows:-
“Division 3 Real estate agent’s authorisation and responsibility
26- What a real estate agent licence authorises
(1) A real estate agent licence authorises the holder of the licence to perform the following activities as an agent for others for reward—
(a) to buy, sell (other than by auction), exchange or let real property or interests in real property;
(b) to buy, sell (other than by auction), exchange, or let businesses or interests in businesses;
(c) to negotiate for the buying, selling, exchanging, or letting of something mentioned in paragraph (a) or (b);
(d) to collect rents.
(2) A real estate agent may perform the activities mentioned in subsection (1) in the carrying on of a business, either alone or with others, or as an employee of someone else.
Division 4 Resident letting agent’s authorisation
27- What a resident letting agent licence authorises
(1) A resident letting agent licence authorises the holder of the licence to perform the following activities as an agent for others for reward—
(a) Letting lots in a building complex;
(b) Collecting rents for lots in a building complex.
(2) A resident letting agent may perform the activities in the carrying on of a business, either alone or with others, or as an employee of someone else.”
Check your management agreements and your template to ensure that you are ticking the correct licence box.
Written by Tarsi Hynes, Director, The Tarsi Way
Information Extract from Property Occupations Act 2014