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A new law to reform the real estate sector was introduced into Parliament this week - just as agents launched a stinging attack on a senior Government minister for repeatedly criticising them.
The new real estate agents bill was introduced to the House on Monday.
Associate Justice Minister
Clayton Cosgrove hopes it will give better consumer protection and replace a law passed 31 years ago.
The bill will remove the Real Estate Institute's regulatory function and abolish the much-criticised Real Estate Agents Licensing Board.
But the bill's introduction coincided with institute president Murray Cleland lashing out at Mr Cosgrove over repeated references to land sharks, rogue agents and talk of carnage in the sector.
In the latest issue of the institute's journal, Mr Cleland said Mr Cosgrove's emotive language and harsh criticism had angered institute members, associates, friends and families who were not concerned with the substance of the reforms but with the way the minister had spoken.
Particularly hurtful were references to the disciplinary system as "mates looking after mates" and statements criticising the institute for having a double agenda, Mr Cleland said.
It was highly inappropriate for Mr Cosgrove to say, "Every day, you wake up and there is another example of stupidity, silliness and incompetence by the industry's leadership", he said.
But Mr Cosgrove - who is in the United States after being invited to Harvard University by the World Economic Forum - lashed out at Mr Cleland, saying he had never personalised his criticism but instead talked about an inept and out-of-touch leadership.
"It's a sad response and a last gasp from an organisation that has been challenged by the community for a protectionist and privileged position of an elite," the minister said.
He also defended the new law, saying criticism from some agents that a new regime would mean consumers had to arm themselves with lawyers was wrong.
"Complainants will not be required to hire lawyers because the new Real Estate Agents Authority - through its Complaints Assessment Committee - will represent their case if it is referred to the Disciplinary Tribunal."
Mr Cleland said yesterday that the institute was deeply disappointed that the new law had not been extended to letting and property managers.
"We believe this will leave consumers needlessly exposed," he said.
The bill's first reading is expected next week and Mr Cosgrove hopes it will be passed early next year.
* THE CHANGES
Maximum fines for agents will be increased from $750 to $100,000.
An independent authority will regulate the real estate sector.
A complaints assessment committee will investigate disputes.
A disciplinary tribunal will deal with the most serious cases.
