NSW to outlaw referral commissions from property firms

Discussion in 'Property Experts' started by Peter_Tersteeg, 15th Jun, 2018.

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  1. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    NSW will be outlawing referral commissions to brokers and financial planners unless a real estate license is held.

    NSW to outlaw referral commissions from property firms

    I think this is a step in the right direction, but it isn't going far enough. It doesn't stop the various companies that promote of the plan property under the guise of education, recommending their own broker, accountant, property manager and conveyancer. These companies can still operate, the other advisors simply can't receive the referral commission directly.

    All it does is prevent people in other associated financial services from promoting property. Whilst these are bad, they're not the worst offenders IMO.

    Just a thought, if these companies are promoting education, perhaps they should be a Registered Training Organisation?
     
    Peter_Tersteeg, 15th Jun, 2018
    #1
    Jacque, Scott No Mates and Terry_w like this.
  2. Jacque

    Jacque Jacque Parker Premium Member

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    Absolutely and about time changes like these were made. The question you ALWAYS NEED TO ASK of anyone recommending you a product/property/service is "Why are you recommending this product/property/person?" In other words.... do you receive a fee for doing so?
     
    Jacque, 15th Jun, 2018
    #2
    Terry_w likes this.
  3. larrylarry

    larrylarry Well-Known Member

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    That's a reasonable requirement.
     
    larrylarry, 15th Jun, 2018
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  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Strategies etc should be prohibited education other than from a registered school, university etc and those educators must hold ALL qualifications and PI cover if they dont provide a recognised qualification that leads to employment. Those in property education banned from facilitating any commercial operations directly or indirectly and making referrals to anyone whatsoever unless they solely deal with REA education.

    All buyers should have a standard declaration where each adviser connected to any services associated with a property (accountant, lawyers, broker, REA, FP, etc) must declare independence and / or fees and income earning. Adviser fees are 100% refundable for breach for ALL parties if compliance is failed by any one who has referred or received referral. Make this form a requirement signed off by lawyer no more than 7 days prior to conveyance. Will create an industry of law firms out to earn fees from protecting consumers on a no win no fee basis.

    The word spruiker should be associated with breaking the law not hard selling property
     
    Paul@PAS, 18th Jun, 2018
    #4