Yes. Insurance and licensing requirements for Real Estate Agents vary between Australian states and territories.

Requirements can arise from:

• State or territory legislation
• Licensing conditions
• Franchise agreements
• Network agreements
• Industry association requirements
• Client agreements
• Commercial contracts
• Workers Compensation requirements

What applies in New South Wales? #

In New South Wales, licensees undertaking activities requiring a licence must generally be covered by a Professional Indemnity Insurance policy meeting the requirements of the Property and Stock Agents Regulation 2022.

Current requirements include minimum cover of at least:

• $1 million for any one claim
• $3 million in aggregate during the policy period

A licence holder can potentially be covered by their employer’s complying policy rather than holding their own separate policy.

The policy and employment arrangement should be checked rather than assumed.

Do the same rules apply throughout Australia? #

No.

Real estate licensing and insurance arrangements differ by jurisdiction.

Requirements should therefore be checked when:

• Establishing a new agency
• Expanding interstate
• Changing business structure
• Joining a franchise
• Changing services
• Renewing insurance

Meeting a minimum legislative requirement also does not necessarily mean the insurance is sufficient for every agency.

Contact our team if you need help reviewing the insurance requirements applying to your real estate business.