Commercial property work – exemptions
Common questions and answers about the exemptions from certain regulations when performing commercial property work.
The following work is excluded from real estate agent functions covered by the Property and Stock Agents Act 2002 (the Act):
- if a person is doing commercial property agency work on behalf of an affiliate of the person
- if a person is doing commercial property agency work for an entity that owns any property having:
- an aggregate market value of $40 million or more, or
- an aggregate gross floor area of 20,000 square metres or more.
This exclusion is found in section 4 of the Property and Stock Agents Regulation 2022 (the Regulation).
A person doing this work does not require a real estate licence.
How does the exemption work?
For the exemption to apply, the person must be doing commercial property agency work for:
- an affiliate of the person, or
- on behalf of an entity that owns any property that meets the thresholds specified in clause 4(2) of the Regulation.
If so, the person is exempt from all requirements of the Act when performing this type of work.
What does ‘commercial property agency work’ mean?
Commercial property agency work is defined in clause 3 of the Regulation to mean selling, purchasing, exchanging, leasing, managing or otherwise dealing with property that is not residential property or rural land.
What is an example of an ‘affiliate of the person’?
An example is where the person might be a property management company that is owned by the owner of a large shopping centre. The affiliate of the person is the owner of the large shopping centre. That owner may use the property management company to lease shops in the shopping centre (on behalf of the owner).
As a real estate agent, I'm unsure if the exemption applies to commercial property agency work that I'm considering undertaking - what should I do?
If you’re still not sure whether the exemption applies to your circumstances after you have read the Fair Trading web pages and the Regulation, you could:
- call NSW Fair Trading on 13 32 20 or lodge an enquiry
- raise the matter with an industry body (if you have membership), or
- seek legal advice on the matter.
Ultimately, it is your responsibility to ensure that you follow the law.