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The Real Estate Institute of NSW (REINSW) has welcomed the introduction of new legislation which has made professional indemnity insurance mandatory for all real estate agents in New South Wales.
The minister for fair trading, Anthony Roberts, has proposed legislation in order to bring the few who don't have coverage into line with the majority that do. What will become industry standard practise is to protect those who use agents but also ensure that insurance can cover any agent from a claim for loss or injury whilst performing their duties.
The proposed law would see all agents be required to hold a $1 million policy from January 1, 2013 with other inclusions within the policy to be announced at a later date.
Real Estate Institute of NSW CEO Tim McKibbin says that these changes benefit agents and those who utilise their services.
"For real estate business owners, professional indemnity insurance is also an essential means of financial protection for claims made against them while delivering their professional services.
"The minister’s decision to consult on incorporating mandatory professional indemnity insurance as part of licensing is an important step forward for real estate practice in NSW," McKibbin said.
The REINSW conducted research that found 75 per cent of real estate agents already have this
insurance.
