The Real Estate Institute of Victoria (REIV) and the Real Estate Institute of Australia (REIA) have failed to dismiss rumours that they will split at the end of this year.
A members' council delegate from the REIV recently informed Real Estate Business that an unfair voting system and a failure to represent the industry at a federal government level are two key reasons behind the institute's decision to exit the REIA.
“Victoria has the highest number of members compared to any other state and thus contributes substantially more money to the REIA," the source said.
“Under the REIA, each state has one vote per issue. It is my understanding the board is not happy with the weighting system. They believe we should have more say, considering our contribution."
The REIV’s membership will end in December after a decision was made in June, according to one source. The REIV must give the REIA six months notice before their termination comes into effect.
Real Estate Business contacted the REIA to respond to the rumoured December split however a spokesperson declined to comment.
In a statement REIV communications manager, Robert Larocca, said the REIV “is a member of the REIA” and that matters regarding its membership are “private and solely between the REIV and REIA”.
The REIA has recently led the charge against certain sections of the proposed national licensing rules for real estate agents, including lower entry standards in some states and the absence of a continuing professional development (CPD) requirement. The industry body has also raised concerns about the way in which the Council of Australian Governments (COAG) has requested industry feedback.
News of the alleged REIV departure comes two years after the Real Estate Institute of New South Wales (REINSW) decided to leave the REIA. According to REINSW CEO Tim McKibbin, the NSW body has no plans to review its decision.
“We have not suffered any detrimental [effects] as a consequence of not being a member of the REIA and in the foreseeable future we will not be rejoining,” he said yesterday.
“The membership fees were a substantial sum and the deliverables we were receiving from the REIA did not seem a value proposition to us.
“It has been a positive for our members. We are now able to utilise those funds to be more akin to our members, giving back to them.
“We have also been able to go into national picture ourselves. An example of this is the national licensing scheme. Just over 12 months ago, the then REINSW CEO Wayne Stewart was on the front page of the Australian Financial Review. We are out there representing our members.”
While Mr McKibbin refused to comment on the REIV’s membership status, he did say the two state-based institutes continued to work closely together on a number of different industry products.
“We have a good relationship with the REIV, we share resources and have developed a suite of products together, and our cooperation continues to grow,” he said.