Professional Indemnity FAQ

Real Estate Agents under Fair Trading watch

The Office Fair Trading puts real estate agents on notice
OFT has recently received a number of complaints about real estate agencies in a particular area advertising properties with incorrect or misleading information, especially regarding the suburb in which a property is located.

A number of complaints have been investigated and agents put on notice about the consequences of breaching legislation that outlaws misrepresentation in advertising. Agents may see it as relatively harmless to advertise a property as being in a neighbouring suburb which is perceived to be more prestigious than its actual location.  In reality however, this is a clear example of misrepresentation.

Any advertising which contains incorrect information, whether intentionally or otherwise, would constitute a breach of OFT legislation. Penalties up to $1 100 000 currently exist for corporations and $220 000 for individuals who present any false or misleading information.

In a real estate setting there are several factors agents should keep in mind when advertising:

  • An agent must take reasonable steps to find out or verify the facts material to the lease or sale to avoid error, omission, exaggeration or misrepresentation.
  • An agent must encourage their client (the seller) to disclose all relevant facts about the property.
  • If an agent has information about detrimental features of the property they are engaged to sell, the agent is required to disclose this information to prospective buyers.
  • An agent is guilty of misrepresentation if they wilfully conceal a material fact about a property, such as a previous flooding.
  • An agent must not make misleading statements about the layout of a property.
  • An agent must not give the impression to buyers that a property in located in one suburb when clearly it is not.

OFT has written to over 70 agents in the area in question alerting them to this final point and the potential consequences of being found to have breached the legislation.

OFT will continue to monitor this issue and not hesitate to investigate likely cases of misrepresentation where they become apparent.

For further information on misrepresentation of information, visit the OFT website.



Logan property agent and company fined - 10/09/12
A Logan property agent and her resident letting company were fined $15 000 in the Beenleigh Magistrates Court (7 September) for 24 breaches relating to a trust account.

Brisbane real estate agent fined for trust account breaches - 31/08/12
A Brisbane real estate agent and her property company were fined $180 000 by the Cleveland Magistrates Court on 23 August for trust account breaches.

Cairns real estate agent and companies fined - 31/08/12

A Cairns real estate agent and his two companies were fined $22 500 in the Cairns Magistrates Court yesterday (30 August) for 58 breaches of the Property Agents and Motor Dealers Act 2000, including 29 unauthorised trust account withdrawals. 



 

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CPR joins Ausure

We would like to announce to all our Clients, Prospective Clients, Suppliers and Insurers, that Cooper Professional Risks Pty Ltd trading as CPR Insurance Services, will be leaving National Adviser Services Pty Ltd (NAS) and joining Ausure Pty Ltd as a Corporate Authorised Representative from 5 March 2018.

Fundamentally, there is no difference to you, except our Invoices will look a little different, and the Banking details will be in a different name and account number. Everything else at CPR stays the same.

There are a number of reasons we have made this decision, but the primary reason is for what we believe is best for our clients.

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Special offer to CPR Insurance clients

Employsure are providing a FREE Business Health Check to all our clients and gives you the opportunity to receive an analysis of the health and safety requirements in your workplace. Also. Employsure  will review your employment agreements as well as your wage rates helping you to avoid workplace claims.

Ordinarily this would cost you at least $1,250 but because you are a CPR Insurance client, it is free!

It involves the following review for you.

SAFECHECK

A specialist Work Health and Safety Consultant will visit your workplace and carry out:

A review of your business’ current work health and safety policies, procedures and systems to identify areas of concern or non-compliance

Following the review, you will receive a report summarising the findings and the health and safety

Status of your workplace

WAGE CHECK

A Wages Adviser will review your rates of pay and produce a Wage Check report.

The review will be conducted against the industrial instrument applicable

A report will be supplied advising if the wages are compliant and what steps to take to achieve compliance

CONTRACT REVIEW

A Document Consultant will review an employment agreement and provide recommendations.

The review will highlight compliance issues with the Fair Work Act 2009 as well as best practice

The report will make recommendations to achieve compliance and provide protection to your business.

This will remove any areas of potential dispute and risk

So what do you have to lose? Contact us on 07 3123 1137 and arrange 

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