Real estate licensees in NSW will be required to have mandatory professional indemnity insurance from 1 January next year.
“The introduction of mandatory professional indemnity insurance is a win for consumers and a win for the profession, and is the result of many years of persistent lobbying by Real Estate Institute of NSW (REINSW),” the REINSW said in a statement.
According to the Property, Stock and Business Agents Amendment (Professional Indemnity Insurance) Regulation 2012, licensees will be required to hold cover of at least $1 million for any one claim and not less than $3 million in the aggregate for all claims made during the period of insurance, the REINSW said.
“Although the new regulation commences on 1 January 2013, in order to allow time for uninsured licensees to obtain compliant professional indemnity insurance coverage, the requirement for mandatory insurance will not take effect until 1 July 2013,” the REINSW added.
The new requirement follows a similar move by the REINSW, which made its members have $2 million in mandatory indemnity insurance from 1 July this year.
REINSW CEO Tim McKibbin said in September that most consumers would assume that this cover would already be in place.
“I believe it would come as a complete surprise to many consumers that real estate agents in New South Wales have, until now, not been required to carry this type of insurance,” he said.