annual general meeting report 14 april 2015 page · real estate institute of northern territory inc...

Real Estate Institute of Northern Territory Inc - Annual General Meeting Report - 14 April 2015 - page

Real Estate Institute of Northern Territory Inc - Annual General Meeting Report - 14 April 2015 - page 2

Executive

PRESIDENT Diane Davis

VICE-PRESIDENT Carol Need

TREASURER Phil Pethick

Councilors

REIA DELEGATE Diane Davis

COMMERCIAL CHAPTER Matthew Knight

EDUCATION CHAPTER Carol Need

AGENTS LICENSING BOARD DELEGATE Diane Davis

BODY CORPORATE CHAPTER Julie Lewis

PROPERTY MANAGEMENT CHAPTER Allison O’Neill

CHIEF EXECUTIVE OFFICER Quentin Kilian

AUDITORS Lowrys Accountants

BANKERS Westpac Bank

SOLICITORS CridlandsMB

REGISTERED OFFICE 3/6 Lindsay Street Darwin NT 0800 Telephone (08) 8981 8905 Fax (08) 8981 3683 ABN 15 717 052 155

Contents

President’s Report ······················································ Page 3

CEO’s Report ······························································· Page 4

Southern Delegates Report ········································ Page 5

REIA Delegates Report ················································ Page 6

Agent’s Licensing Board Delegates Report ················· Page 7

Financial Statements Y/E Dec 31 2013 ······················· Page 11

Treasurer’s Report ····················································· Page 12

SALES CHAPTER Sascha Smithett

SOUTHERN DELEGATE Andrew Doyle

RETIRED FROM COUNCIL IN 2014 Morgan Shearer Steffi Hart

Your Council


Change has become a constant in the lives of real estate agents and this applies to your Board as well. This year, with sadness, I announce the retirement of our Treasurer, Phil Pethick, who has worked tirelessly for the past 8 years giving fiscal oversight to the Institute, guiding the CEO’s, preparing our monthly financial statements as well as our end of financial year reports,

giving constructive advice on our proposed expenditure. Phil tells me that he plans to travel more – well-earned travel indeed! On behalf of the Board and the REINT Members I wish all the best to Phil. In addition Steffi Hart, one of our hard working southern region Directors, resigned earlier in the year due to work commitments. We thank Steffi for the time and effort she put into the role and for the insights she was able to bring to the Board from Alice Springs. And Morgan Shearer, who you are aware stepped down last year as President, this year stood aside from his role as an REINT Director & REIA Vice-President. At our REINT Awards for Professional Excellence last year the granting of the prestige Ken Waters Award was bestowed upon Morgan Shearer for his giving of time and commitment to our profession over the past fifteen years. Again we say “congratulations Morgan, well deserved”. The appointment of Mitch Elton to the role of Professional Development Coordinator has greatly increased the awareness of REINT Professional Development activities and training through her fabulous approach and commitment to ensuring we offer relevant and quality training and Professional Development training. To the staff at the Institute I am forever grateful for their tireless work that goes unrecognised. One very interesting advent, which both your Board and the CEO have been lobbying on for over a year, is that the Agent’s Licencing Board have approved an alteration to the REINT training regime which will allow us to introduce “steaming” for the Salesperson and Property Manager training courses. It is our hope that regulatory approval will allow this to commence mid-2015 and the Institute will provide Members with details as this implementation progresses.

Yet more change is afoot with the Institute on where it will be located post-November this year. After 20 years in Lindsay Street the REINT will be relocating, either toward the end of this year or in the early part of 2016, as the Fidelity Fund (the owner of our building) would like to divest itself of this asset. The CEO and Board Member, Matthew Knight, are looking at some potential new ‘homes’ for the REINT and we will provide advice to Members as this process finalises. Having recently been appointed to represent the REINT at a national level as a Director on the REIA Board, I attended the REIA Annual General Meeting & REIA Board Meeting in Canberra last December. In my first exposure to the national Board I was confronted with the proposed resignation of REIQ, which as you will have all read has now occurred, but I am very hopeful that a special meeting of Directors and CEO’s from all REI’s, including NSW & QLD, to be held in Sydney on 22nd April, will be able to formulate a compromise position that would see both the REIQ & REINSW re-join the REIA as full Members. In wrapping up my report to this year’s AGM, to the outgoing Board Members - my personal thanks for the wonderful job you have done and the commitment to the profession you have shown by volunteering your time on the Board. To the new appointments - I welcome you and look forward to working closely with you as Board Members and representatives of your chosen profession. To my good friend and CEO of the Institute, Quentin Kilian, what would I do without your guidance? Quentin has been with us now for 6 years and has indicated to the Board that he see many years of engagement as CEO yet to come. As the landscape of real estate in the Territory changes, yet again, and for some presents testing times, I will leave you in this report with a little something to ponder over: “Real estate agents who do today what they did yesterday,

will end up with yesterday’s results tomorrow”.

Diane Davis President

President’s Report


CEO’s Report

“The gem cannot be

polished without

friction,

nor man perfected

without trials.”

Chinese Proverb This past year has been one of mixed blessings and trials of sanity. The latter part of the year saw a marked turn in the real estate market which has placed a fair bit of pressure on our Members. While parts of the

marketplace are showing some improvement in the early part of 2015, it is certainly a testing time and one that will prove up those with the fortitude to succeed. The Institute has not been immune to some highs and lows in 2014, but let’s not focus too much on the lows, rather see them as a test and look to the brighter parts of the year. One of the shining lights has been the engagement of Mitch Elton as the Professional Development Coordinator. Mitch has built on the previous great work of Fi South to bring to Members the most comprehensive program of Professional Development the Institute has ever offered. This includes a greater level of PD activities in Katherine, Alice Springs and for the first time in Nhulunbuy. One of our key events is the Territory Property Management Conference which continues to grow in stature. TPMC2015, in Alice Springs on 10 June and Darwin on 11 June, will feature speakers from around Australia and a very special key note speaker in the inspirational Tony Christenson. If you haven’t already booked you really do not want to miss this event, so go to www.reint.com.au and make your booking. If you are not already aware, the REINT bid for – and won, the right to host the 2016 Australasian Auctioneering Championships in Alice Springs. This will take place from September 6 to 9, 2016 and will bring together the best auctioneers from around Australia and across the ditch to compete for the coveted title. To more mundane, but equally important matters, this year we are commencing a review and reform of the REINT Constitution. This is long overdue and will not be a simple process to bring our Constitution up to scratch but our aim is to have it ready to present to members by the AGM in 2016. Following the removal of the First Home Owner Grants on existing property from 1 January this year across the NT, the

REINT is currently lobbying Government for their reinstatement or some stamp duty relief that would again allow first time buyers to consider existing stock. We are working on this in unison with the Australian Institute of Conveyancers and the MFAA (mortgage brokers). And on a much brighter note, after more than 12 months of presentations, re-presentations and lobbying to the Licensing Board and Ministers, the REINT was successful in gaining approval to change the training regime and introduce ‘streaming’ for sales and property management courses. This will mean shorter, more defined training, but will result in a restricted certificate rather than the full CertIV. We are currently awaiting changes to the regulations and possibly legislation before we can commence this, but we’re hopeful that we can bring it in in the second half of this year. I would like to use my column to thank my team for another sterling effort. The support they give me and give to you, as members, often goes overlooked and without this amazing team the Institute could not perform the way it does. Also thank you to the Board for their guidance, mentorship and occasional robust discussions. This year we have said farewell to two Directors in Morgan Shearer who stood down as President at the 2013 and then as a Board Member in 2014, and Steffi Hart from Alice Springs for left us during the year. We welcomed Andrew South as a casual appointment to the Board in December. Andrew is standing for election at this AGM. And we also received the resignation of Phil Pethick, our long serving Treasurer, who will make his final presentation at this AGM.

All in all it has been a good year. One where your institute

continued to expand its services to Members and to add

more benefits such as Forms Live. We will continue to seek

new opportunities for you, add more training for you and

provide you with value as members of the REINT.

Quentin Kilian Chief Executive Officer


Southern Delegate’s Report

2014 was a tough year for all sectors of the market and with the changes to the First Home Buyers Grant as at 31 December 2014, we have seen a significant decline in activity during the first quarter of 2015. The December 2014 quarter was reasonably strong with First Home Buyers making the most of their ability to buy old stock before 31

December 2014. This crammed the end of the year with a larger than normal amount of transactions, but has left a large void behind. Rental prices have dropped on the back of higher than normal vacancy rates and with the introduction of the Real Housing for Growth properties at 30% below market for new product this will place further pressure on our rental value and vacancy rates throughout 2015. The Kilgariff land release came online with titles issued late in 2014 and this should ensure a steady supply of land for Alice Springs for the next 10 years which will be a major achievement for this government. We still require additional land release as Kilgariff will only cater for one section of the market and we look forward to the next stage of Mt Johns at some time in 2015. Along with a 37 block subdivision at South Edge and Stage 2 of Kilgariff which is currently selling, our supply of land through 2015 should be adequate. The Commercial and Industrial sectors remain flat on the back of a flat economy. Commercial rates have plateaued and vacancy rates have remained steady. The majority of commercial landlords are offering significant incentives to entice new tenants and for existing tenants to resign lease extensions.

It’s not all doom and gloom as 2015 has a number of projects that should stimulate the local economy. The new Supreme Court Building is to be constructed just off the Mall and will provide a number of employment opportunities in the construction industry along with 75 residential units to be constructed on the “Old Bowling Club” site. The new home construction at Kilgariff and the Melanka Redevelopment that, if approved, will be the largest project in Alice Springs history, being in the vicinity of $100,000,000, will provide a considerable boost to employment and the overall economy. This project is planned to commence in the last quarter of 2015.

However, without significant changes to the First

Home Buyers grant our market will struggle

despite record low interest rates. There is currently

limited, if any, stock for First Home Buyers to

purchase to occupy and this will not change until

late into 2015. We look forward to theses projects

providing employment growth and then increase

demand for both rental and sale properties

throughout 2015 & 2016.

Andrew Doyle REINT Southern Delegate


REAL ESTATE INSTITUTE NORTHERN TERRITORY INC. ANNUAL GENERAL MEETING

APRIL 2015

REPORT FROM NORTHERN REGION INDUSTRY REPRESENTATIVE OF THE AGENTS LICENSING BOARD

Administration of Agents Licensing Act The Department of Business is responsible for the administration of the Agents Licensing Act and Auctioneers Act. The Honourable Peter Styles is the Minister for Racing, Gaming and Licensing. The Agents Licensing Board is responsible for considering applications for the grant of licences and registrations as an agent’s representative and for the conduct of Inquiries into applications for

disciplinary action against a licensed agent or agent’s representative under the Agents Licensing Act. The Board is assisted by the Registrar of Land, Business and Conveyancing Agents and staff of the Licensing Unit, Licensing NT. Composition of Agents Licensing Board The Board is a body corporate established under sections 6 & 7 of the Act and is comprised of the following members:

Name Position Date of Appointment Expiry of Term

John Tsouklais

Chairperson

24/07/2014

23/07/17

Tom Berkley

Alternate to Mr Tsoukalis

24/07/2014

Period of JT’s term

Gareth James

Departmental Representative

13/02/13

At Minister’s pleasure

Jeffrey Stewart

Alternate to Mr James

13/02/13

Period of GJ’s term

Lea Aitken

Consumer Representative

10/07/13

09/07/16

Vacant

Alternate Consumer Repre-sentative

Jo-Ann Pulsford

Industry Representative (Southern Region)

20/07/12

19/07/15

Stephanie Hart

Alternate to Ms Pulsford

20/07/12

Period of JP’s term

Diane Davis

Industry Representative (Northern Region

04/09/06

Re-appointed 04/09/09


24/09/15

Denise Meeking

Alternate to Ms Davis

04/09/03

04/09/06 – as alternate Re-appointed 04/09/09


Period of DD’s term

Agents Licensing Board Report


Property Agents Licensing Group The function of Property Agents Licensing is now under the Licensing NT Division and office location remains at Enterprise House, 28-30 Knuckey Street, Darwin. Ms Karen Avery remains as Registrar of Land, Business and Conveyancing Agents. Ms Carolyn Parsell, Director Licensing and Marita Cabot, Licensing Manager hold statutory appointments as Deputy Registrars. Ms Loretta Orlando holds the position of Property Agents Secretariat and Ansari Fong holds the position of Licensing Officer. The Agents Licensing Fidelity Guarantee Fund The Agents Licensing Fidelity Guarantee Fund is a body corporate established under section 94 of the Act. The function of the Fund is to maintain and operate the moneys of the Fund comprised of contributions, levies, licence and registration fees, fines and interest paid to it. The Fund consists of the Registrar, the Chairperson of the Board and a member appointed by the Minister who has expertise and experience in finance and investment. Alex Pollon has held the appointment since 24 July 2014. Details of Fund assets follow:

There were no claims against the Fund during the reporting period.

The 2014 audit of the Fund was conducted by Deloitte. Fund revenue for the period was $1 951 977 (2013: $1 721 074). Section 50 interest revenue was $845 904 (2013: $1 007 504). The licensing and registration fees were $371 361 (2013: $214 350).

Section 93 Grants On 16 June 2011, the Minister for Justice and Attorney-General approved the following funding to the REINT:

$58,000 for 2011 to employ a Professional Development Manager (including $8,000 establishment costs);

$50,000 plus CPI for 2012 onwards for the employment of a Professional Development Manager;

$45,962 for 2011 and thereafter the same amount plus CPI to run an agency compliance audit program.

An acquittal report in respect was received on 11 February 2015 and a supplementary report was received on 5 March 2015. An Agents Licensing Fidelity Guarantee Fund out-of-session paper is being prepared.

On 21 August 2014, the Minister for Business approved a grant for the 2014 REINT Awards for Professional Excellence. Payment of $9,200 was paid on 3 September 2014 following receipt of the Tax Invoice.

On 1 July 2013, the Minister for Business approved a grant to the Australian Institute of Conveyancers NT Division in the amount of $273,600 for funding in 2014 and 2015 to set up a certified practising conveyancer professional development course; employ a part-time person to set up and run the program; provide equipment to run the association and CPC Program and remunerate committee members.

Assets as at 28 February 2015 as at 28 February 2014 as at 28 February 2013

Colonial First State

Wholesale Funds

$21,785,064 $19,254,563 $16,405,495

WBC – Cash Manage-ment Account

$1,215,861 $1,759,467 $566,224

Westpac term deposit $1,800,000

Unclaimed Monies Ac-count

$130,246 $108,539 $99,588

Property- 3/6 Lindsay St $650,000 $650,000 $790,000

TOTAL $23,781,171 $21,772,569 $19,661,307


On 17 December 2013, a Funding Agreement was executed and on the same day, payment of $143,600 was made for 2014 funding. 2014 funding has been acquitted. On 17 December 2014, payment was made for $130,100.

Section 92 Grant

On 21 November 2012, the Minister consented to the use of $316,248 (GST inclusive) from the Fund for the continued provision of realty education in 2013 and 2014.

On 19 December 2012, a funding agreement was executed. On 13 January 2014, $80,230.50 (GST inclusive) was paid by cheque, following receipt of Tax Invoice for 50% of 2014 base funding.

The reporting and acquittal of the 2014 grant is due to be lodged after this AGM.

On 6 February 2015, a Funding Agreement was executed between the Agents Licensing Board and REINT for continued funding for 2 years to conduct educational courses approved by the Board. The Agreement provides for base funding in 2015 of $196,971.50 and base funding in 2016 of $202,881.

The Board intends to seek expressions of interest for the delivery of training beyond 2016. Tenancy Trust Account

On 30 July 2014, a payment of $311,317 was made to the Tenancy Trust Account in accordance with the Ministerial Determination for provision of a tenant’s advice service. On 7 August 2014, a payment of $310,000 was made to the Tenancy Trust Account in accordance with the Ministerial Determination for the operation of the Commissioner of Residential Tenancies Office for the financial year 2014/2015. Lease of Unit 3, 6 Lindsay Street The current lease of Unit 3, 6 Lindsay Street expires on 16 November 2015. The REINT has sought a lease extension to 31 December 2016 which has been approved in principle by the Fund. The Fund has discussed the need for the new lease to be on a more commercial basis and has sought rental appraisals. The content of a new commercial lease will be worked through in liaison with the REINT. Licences and Registrations The total number of licences and registrations as at 10 March 2015: Real Estate and Business Agents Licences 383 Registered Agent’s Representatives 595 Conveyancing Agent Licences 57 Auctioneers Licences 119 Complaints and Applications for Disciplinary Action The Board conducted 6 Disciplinary Inquiries during 2014.

On 23 January 2014, Ironstone Realty Pty Ltd trading as Ironstone Realty was found guilty of a breach of the rules of conduct for agents, in particular Section 65(1)(a) of the Act by employing an agent’s representative who was unregistered. The agent was cautioned and was required to provide a written apology to the Applicant.

On 25 February 2014, Whittles Body Corporate Management Pty Ltd trading as Whittles Body Corporate was found guilty of a breach of the rules of conduct for agents, in particular Section 65(1)(da) of the Act by failing to exercise due skill, care and diligence in dealing with the Applicant.


On 30 May 2014, Whittles Body Corporate Management Pty Ltd trading as Whittles lodged an appeal on three grounds against the decision of the Agents Licensing Board through the Local Court.

On 30 January 2015, the Local Court handed down the decision on appeal. One ground was upheld and two grounds dismissed.

The matter is yet to be finalised and Court Order issued.

On 19 May 2014, Gradsha Pty Ltd trading as Body Corporate Specialists NT was found guilty of a breach of the rules of conduct for agents, in particular Section 65(1)(c) of the Act in failing to perform duties to their principal by failing to provide records, documents or information when requested. The agent was fined $750 and was required to provide a written apology to the Applicant.

On 17 June 2014, Cate Killiner Real Estate Pty Ltd trading as Cate Killiner Real Estate was found guilty of a breach of the rules of conduct for agents, in particular Section 65(1)(c) of the Act by failing to perform duties to her principal by altering the terms of the Contract without proper instruction from the Applicant. The agent was reprimand and was required to provide a written apology to the Applicant.

On 20 October 2014, the Board rejected an Application for Disciplinary against Whittles Body Corporate as there were no grounds to take disciplinary action.

On 20 November 2014, Molara Pty Ltd trading as First National Real Estate O’Donoghues was found guilty of a breach of the rules of conduct for agents, in particular Section 35 of the Act by employing an unregistered agent’s representative and failing to perform duties to their principal. The Statement of Reasons for Decision, including penalties, is being formalised.

During the year, the Board considered a number of Applications for Disciplinary Action some of which were rejected as the Board was satisfied that there were no grounds for holding, or there was insufficient evidence to hold, an inquiry. The Board conducted 1 Inquiry into a licence during 2014:

On 27 November 2014, the Board refused the grant of an application for the grant of a real estate agent’s licence for Ms Frances Crees as she was a disqualified person being an undischarged bankrupt.

Board Meetings In 2014, the Board held meetings in March, May, August and December. The December meeting was held in Alice Springs and a joint reception with the REINT was held on 3 December 2014. Meeting dates for 2015 follow – 16 February, 18 May, 17 August and 16 November. The Alice Springs meeting is yet to be decided. As a part of a standing arrangement, the REINT and AIC, NT Division are invited to attend the meeting to raise and discuss matters of mutual concern. Board Policies No policies were determined since the last report.

DIANE DAVIS Industry Member Agents Licensing Board


Financial Statements 2014


I have pleasure in tabling the REINT Financial Reports for the year ended 31 December 2014, my last as the REINT Treasurer. Financially it has been a reasonable year with a net loss of $50k coming from a net surplus the previous year of $61k. It must be noted however this

loss figure is inflated due to 2013 unspent grant moneys being carried over and expended in 2014. If you combine the profit and loss over the 2 years it averages out to a minimal profit. Income - movements worth noting Grants & Funding down $72k due to less

funding applied for. Membership income up $15k. A good result

through growth in membership and can be attributed to the increased profile of the institute in the community and T.V. advertising.

Expenditure – movements worth nothing Advertising and promotion up $5k due to

additional television and print advertising promoting the REINT and courses available.

Fringe Benefits Tax up $12k. An audit

identified no FBT had been paid on staff benefits. This figure is a combination of 3 years payments and FBT payments are now up to date.

Legal Fees down $9k as there was no

extraordinary activity this year.

Social Functions up $21k. This includes the

REINT Corporate Golf Day and REINT Members Christmas parties for Darwin and Alice Springs, along with an increase in Professional Development courses which are only partially subsidised.

Premises expenses down $9k. Less

maintenance required this year. Industry Awards up $9k but overall profit in

this line code was achieved. Employment expenses up $45k. We had

budgeted for part of the PD Manager wages being covered from Fidelity funding. Most was covered from 2013 funding but we are waiting on approval for additional 2014/15 funding for this role which we hope to receive shortly.

Again our CEO and his Team have put a lot of effort into 2014. As in past years, Quentin has continued to lift the profile of the REINT through networking and exposure of our brand and we are continuing to see the benefits of this. Overall we continue to be in a healthy financial position however increase costs of running the business continue to demand prudent management. On a personal note, it has been a pleasure to serve the REINT as a Board Member and I wish current and new Board Members and the CEO every success in steering the REINT into the future.

Phil Pethick Treasurer

Treasurer’s Report


3/6 Lindsay Street, Darwin, 0800, Northern Territory Telephone (08) 8981 8905 | Fax (08) 8981 3683 Email : [email protected] www.reint.com.au

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