Ensure you never miss an issue of the
real estate business bulletin
NSW licensees face mandatory indemnity insurance

NSW licensees face mandatory indemnity insurance

by Simon Parker 0 comments

Staff Reporter

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.

le>.b-autolinks{text-decoration:underline}.b-autolinkshadowbox { display: inline; position: relative; cursor: pointer; color: #428bca;} .b-autolinkshadowbox:hover > span { display: block !important; } .b-autolinkshadowbox__links { white-space: nowrap; z-index: 999; display: none; left: 0; border: 1px solid #bfbfbf; border-radius: 5px; font-size: 12px; top: 12px;color: #000; padding: 10px; position: absolute; background-color: #FFF; box-shadow: 0px 0px 20px 1px #bfbfbf; } .b-autolinkshadowbox__links > a { display: block; padding: 3px 0; }
NSW licensees face mandatory indemnity insurance
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?