131Certain property agents to have professional indemnity insurance

131 Certain property agents to have professional indemnity insurance

(1)  This section applies to –

(a) a real estate agent named in Part 1(1) of the Register; and

(b) a property manager named in Part 2(1) of the Register; and

(c) a general auctioneer named in Part 3(1) of the Register.

(2)  A property agent to whom this section applies must maintain insurance cover that indemnifies the property agent against any liability that the property agent may incur in respect of any loss or damage suffered by other people occasioned by any act, default, omission, neglect or defalcation by the property agent in the course of his or her business as a property agent.

Penalty:  Fine not exceeding 500 penalty units.

(3)  The insurance must cover –

(a) claims by clients, and people who are not clients, of the property agent; and

(b) claims arising from any act, default, omission, neglect or defalcation by the property agent and by any person employed by, or acting on behalf of, the property agent.

(4)  The insurance cover is to be provided by an insurance company approved by the Australian Prudential Regulatory Authority for the provision of insurance in respect of the risks mentioned in this section.

(5)  A property agent to whom this section applies must, whenever required to do so by the Board, provide to the Board evidence in a form specified by the Board to show that the property agent has the insurance cover required by this section.

Penalty:  Fine not exceeding 50 penalty units.

(6)  If the Board advises a property agent that the insurance cover maintained by the property agent is in its opinion insufficient to cover the liabilities mentioned in this section, the property agent must increase the cover to such amount as the Board may specify.

Penalty:  Fine not exceeding 500 penalty units.

(7)  The Board may specify a minimum level of cover that a property agent to whom this section applies must maintain to comply with this section.