The Value of Education as a Pre-Requisite for Occupational Licensing in the Built Environment

During the last 50 years, education for the built environment professional in Australia has undergone many changes. The profession encompasses construction, project management, property agency, valuation, engineers and architects. Within Australia, each state and territory has a range of regulatory bodies and professional associations to monitor and enforce compliance and licensing relating to educational requirements. Professional licensing requirements often drive tertiary education requirements. This research paper examines the need for compulsory education in the property and construction industries. Additionally, emphasis on the fields of knowledge embedded within the course curriculum, and the requirements for work experience are discussed. The research is complemented with data from New South Wales and the governments’ purpose for initially introducing compulsory education, and the subsequent amendments thereafter. It is argued that education as a pre-requisite for occupational licensing provides many benefits for the end user. Furthermore, with the changing nature of the work environment, education is viewed as a convenient vehicle to deliver the needs of the consumer. The paper concludes with an evaluation of the current regulatory controls on the educational requirements within the property and construction sectors

Regulatory Theory Applications Underpinning the National Licensing System for Educational Requirements in Property Licensing

In July 2008, the Council of Australian Governments (COAG) agreed to establish a national licensing arrangement for seven occupational areas, including the building and property sector licensing, with respect to builders, property agents, conveyancers and valuers. The aim of these reforms is to establish a more uniform licensing system within these jurisdictions. Currently, these licensing requirements are managed under the auspices of individual state and territory Offices of Fair Trading. However, despite uniformity in the choice of regulator, the licensing provisions themselves are not uniformly designed, or enforced. For example, in New South Wales, the regulation of property agency is part of the Property Stock and Business Agents Act 2002, and the associated regulations. The purpose of this research paper is to analyse the different State and Territory laws and regulations applicable to the educational requirements for property agency licensing and to explore appropriate governance requirements for a uniform model of educational qualifications. The paper uses regulatory theory applications to evaluate the current educational requirements for the property licensing systems operating within Australia. It is argued that a national model for educational qualifications for licensing is feasible; however, transitional rules will need to be implemented to allow each jurisdiction the opportunity to phase-in the recommended changes gradually

Housing Affordability in Australia: The National Rental Affordability Scheme v. Public Housing and Welfare Programs

The National Rental Affordability Scheme (NRAS) was introduced by the Federal Government of Australia, on the 1st July 2008. Whilst the primary aim of the scheme is to provide new dwellings for low to middle income Australian families, there is also the added bonus of a tax incentive program for property investors. In contrast, whilst public housing and welfare programs are not accompanied by tax incentives for property investors, these are also generally considered as suitable options for providing affordable rental housing. The purpose of this research paper is to undertake a comparison of NRAS against other welfare programs, such as public housing and to evaluate the long term viability of these programs and schemes. It is argued, that in the long term, schemes such as NRAS, which are accompanied by tax incentives for property investors, are able to provide a more permanent solution to the housing rental affordability issues within Australia

White Collar Crime and Property Agents: A Selection of Convictions Involving Trust Accounting Fraud

Property agents in New South Wales are entrusted with the responsibility of monitoring and accounting for all trust money held on behalf of their principle, for example the landlord and vendor. This procedure includes, but is not limited to the receipting and banking of trust funds, correct allocation of the money into the ledger accounts, and the appropriate accounting of trust funds to their principle. During the last decade, there has been a steady increase in fraud with agency's trust accounts. These identified trust account deficiencies and actions of dishonesty have been disguised by licensees and their employees using various methods of application. Literature suggests white collar crime is 'those illegal activities that occur in connection with a persons job or work' (Sutherland 1939). The purpose of this research paper is to examine a selection of court cases which relate to trust accounting fraud. The aim of this research was to identify any trends as to why the crime was committed. An Occupational Corruption Equation was developed and mapped against the court cases to determine a relationship with any trends which led to the misappropriation of those trust funds. The research concluded that the ready availability of trust funds provided a temptation for the offenders, who displayed little regard for the laws and ethics of their behaviour

The Role of Education for the Valuation Professional

Property valuers are specialists who undertake an important role in the Built Environment. Their role can include determination of rent reviews, valuation of properties, portfolio reviews for investment properties, valuations for estate matters and property ownership valuations. Mandated education is a pre-requisite for the licensing of valuers, and with added restrictions depending on whether the level of qualification held is an Advance Diploma, or an Undergraduate degree - both qualifications requiring a major in Valuation subjects. This paper is to clarify the educational aspects placed upon valuers where mainstream tertiary pedagogy was initially considered adequate; however, in later years the requirements changed to an undergraduate degree qualification. Therefore, the curriculum design for mainstream valuation courses is analysed and compared between the vocational sector and universities. It is arguable whether it is the teachings of the epistemology of valuation, or the assessment methodologies which steer the property industry to nominate the undergraduate degree for full valuation recognition and licensing

The Challenge: Teaching Accounting Concepts to Students of the Built Environment

Accounting Concepts are considered crucial for the successful operation of any business or profession. Therefore, many undergraduate degrees include an individual subject for accounting. Consequently, lecturers are faced with the daunting task to teach accounting to non-accounting students, usually within a short space of time, and yet with the expectation that the students will immediately grasp all the key concepts and adequately maintain books and records to comply with relevant Accounting Standards. The purpose of the research paper is to ascertain the effectiveness of different teaching styles for students in the built environment. The research methodology in this paper analyses results from four groups of students, over two years, who were enrolled in property and or construction undergraduate degrees. The undergraduate degrees comprised of one shared accounting subject which was taught over one semester. Two groups of students (Groups A and D) were taught with a modified approach towards accounting language, with integrated examples relating purely to the built environment, and the other two groups (Groups B and C) were taught with the traditional accounting language found in an accounting degree and with the use of examples relating to a variety of industries, but not including the built environment. The results indicate a superior learning outcome, outstanding results, and a higher pass rate for groups A and D

Strata Managers and Educational Mishaps

In Australia, educational qualifications are a prescribed requirement for licensing within various occupations and professions, and each state and territory has varying degrees of educational aims and objectives. This research paper examines the minimum standards of education and knowledge, which are imposed as a pre-requisite for the licensing of a Strata Manager. The paper traces the historical progression which occurred during the last century to the current decade, and includes an assessment of societies changing needs of the role within the profession. In this regard, it is argued that the educational requirements during the mid 1990s to the early 2000s best served the needs of the consumer in comparison to these last 10 years. The discussion is complemented with data from New South Wales, mapping the educational knowledge fields and comparing this information to the duties and responsibilities of a Strata Manager

The Inclusion of Professional Ethics in the Course Curriculum Design for Property Agents

Professional ethics is considered to be a key component within the daily activities of all businesses, and in particular a real estate agency practice. During the last 100 years, regulatory policy has been developed to exemplify the standards for social responsibility and ethical behaviour within the property industry. However, documented increases in fraud indicate a lack of moral behavior within the profession and a clear need to enhance consumer protection. Therefore, is there a necessity to include a separate subject for professional ethics within the course curriculum for property agents; or is the integration of ethics within nominated subjects, a sufficient approach for the student to grasp the key learning outcomes associated with professional ethical practice? This research paper examines the design of the real estate licensing curriculum in Australia and the relevance and flexibility of the subjects included. Additionally, the method of assessment, which is primarily competency based learning, is discussed and mapped against suggested applications of ethics. The paper concludes with recommendations on best practice approaches to enhance the curriculum and learning outcomes for property agents

White Collar Crime Within Property Agents' Trust Accounts

Property Agents in New South Wales, have a duty of care towards the correct accountability of trust money held on behalf of their principle, for example the landlord and vendor. Society over the years though, has changed; and with the increase in white collar crime consumer confidence has eroded and government regulation has increased to enhance consumer protection. The question therefore arises whether or not white collar crime can be prevented. However, without understanding the reasons for the crime occurring, it is difficult to implement safety mechanisms to prevent the fraud. This research paper examines a number of constant characteristics associated with white collar crime and concludes that the four characteristics Motive, Targets, Access and Opportunity, form the basis for white collar crime in a property agency

The Application of Taxation Benefits and Incentives for Green Buildings

Australia's National Strategy for Ecologically Sustainable Development endorses the establishment of taxation systems that take into account the social and environmental costs of resource use. In the context of the construction industry, the Green Building Council of Australia similarly promotes the concept of Ecologically Sustainable Development (ESD) and recognises the need to integrate economic instruments with sustainable practices. Historically, taxation incentives for ESD are available to the developer who outlays the funds as part of the development and construction process. However, the Green Building Council of Australia observes that 'developers tend to focus on initial costs, rather than costs over the lifecycle of the building'. The purpose of this paper is to undertake a textual analysis of current and proposed legislation and policy instruments at the Commonwealth level to critique the distribution and application of tax incentives available to stakeholders in a commercial building. It is argued that some of the taxation incentives are of benefit mainly to the developer, since these incentives are primarily targeted towards the initial costs of the building rather than the life cycle of the building. Therefore, it is questionable whether this focus accords with the policy and intent of Australia's ESD strategy. The research concludes with recommendations for changes in the application of taxation benefits and incentives for green buildings