Regulatory Framework and Professional Standards
This domain tests the Board of Valuers, Appraisers, Estate Agents and Property Managers regime under Act 242, the discipline process, continuing education and the compliance duties attaching to estate agency. It concerns the framework around practice, not the transaction steps.
The Board and registration
The Board administers Act 242. It maintains registers, sets standards, conducts examinations including the Test of Professional Competence and handles discipline. A registered estate agent must hold a current authority to practise; firms must be registered and carry professional indemnity insurance. Passing the Test of Professional Competence does not itself register the candidate; application, fees and fitness requirements still apply.
Conduct and compliance
The Board's code of conduct requires integrity, competence, confidentiality and disclosure of conflicts. Estate agents are reporting institutions under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001: they must conduct customer due diligence, verify beneficial owners, keep records and submit suspicious transaction reports. The Personal Data Protection Act 2010 governs client data. Continuing professional development is required to keep registration current.
Discipline
Complaints go through inquiry; sanctions can include reprimand, fine, suspension or removal from the register. Unregistered practice, fee-sharing with unregistered persons and failure to keep client money separately are common charges.
Worked example
An agent receives a large cash deposit from a buyer whose identity is unclear and who refuses to explain the source of funds. The agent should complete enhanced customer due diligence, verify identity and source of funds, keep a record and consider a suspicious transaction report. Continuing without checks exposes the agent to anti-money laundering liability and disciplinary action. Reasoning: the obligation is on the reporting institution, and saying the lawyer will handle it is not a defence.
Traps
- Assuming Test of Professional Competence success automatically confers registration.
- Letting professional indemnity insurance lapse.
- Treating anti-money laundering as the bank's duty only.
- Sharing commission with an unregistered introducer.