Source: http://www.legislation.nsw.gov.au/fullhtml/inforce/subordleg+707+2006+cd+0+N
Timestamp: 2013-05-23 17:07:55
Document Index: 487178744

Matched Legal Cases: ['art 3', 'art 5', 'art 2', 'art 3', 'art 3', 'art 3', 'art 4', 'art 5', 'art 8', 'art 5', 'art 3', 'art 11', 'art 3', 'art 5', 'art 11', 'art 11', 'art 11', 'art 3', 'art 6', 'art 5', 'art 7', 'art 9', 'art\n10', 'art 9', 'art 8', 'art 5', 'art 5', 'art 5', 'art 4']

[2006-707]
Current version for 1 July 2012 to date (accessed 24 May 2013 at 03:07).
Does not include amendments by:Conveyancers Licensing Amendment (Fees) Regulation 2013 (169) (LW 3.5.2013) (not commenced — to commence on 1.7.2013)
4 Meaning of “Operating Account”
5 Fees for licence
6 Professional indemnity insurance: section 15
Part 3 Conduct of conveyancing business
7 Section 20 exemptions—person in charge at place of
9 Conduct of other businesses
10 Obligation to disclose certain matters to
11 Itemised account
12 Notifying Tribunal of costs dispute
13 Fee for notifying Tribunal of costs dispute
14 Costs of assessment
15 Application for determination of costs dispute
16 Fee for application for determination of costs
17 Transfer of proceedings to or from other courts or
19 Keeping of records generally
20 Specific records to be kept by licensees
21 Computer records
22 Statements of account
23 Receipt and withdrawal of money for costs and
24 Banking of trust money
26 Payment of trust money
28 Cash book record of trust account transactions
32 Signing of cheques or effecting electronic funds
33 Account in the name of a licensee
34 Records that licensees must keep
35 Period for which records must be retained
36 Records and book entries to be in English
38 Complaints and discipline
39 Modification of Licensing and Registration (Uniform Procedures) Act
40 Corporate licensees
41 Penalty notice offences and penalties
Division 2 Transitional provisions relating to controlled
43 Part 5 and controlled money
44 Manner of dealing with controlled money
45 Controlled money not transferred to trust
46 Audit period
47 Approved policy of professional indemnity
Schedule 3 Rules of conduct
2006.2 CommencementThis Regulation commences on 15 December
2006.3 Definition(1) In this Regulation:the Act means
2003.(2) In this Regulation, a reference to a Form is a reference to a Form
Regulation.4 Meaning of “Operating Account”The departmental account known as the Compensation Fund is
prescribed for the purposes of the definition of Operating Account in section 90
of the Act.Part 2 Licensing5 Fees for licence(1) Certain of the fees payable for the purposes of the Act are listed
in Column 1 of Schedule 2.(2) The amount of each fee is to be calculated by adding together the
various components set out in Columns 2 and 3 of Schedule 2 in relation to
of Schedule 2 under the heading Processing component is taken to be a
2002.(4) Despite subclause (2), the amount of the fixed component of an
application fee for the grant of a licence of less than 12 months duration is
a proportionate amount of the amount specified in relation to that fee in
Column 2 of Schedule 2 under the heading Fixed component, calculated on
a monthly basis with part of a month being treated as a whole
month.6 Professional indemnity insurance: section 15(1) A licensee must be insured under a policy of professional
indemnity as provided in subclause (2).(2) A licensee is insured as required by this clause if:(a) the licensee is insured under a policy of professional indemnity
insurance in force with respect to the licensee or his or her employer, being
a policy, or a policy of a kind, that is approved by the Minister for the time
being by order published on the NSW legislation website,
(b) the licensee carries out conveyancing work only in the
licensee’s capacity as an employee of a complying law
(3) In this clause, complying law
practice means a law practice within the meaning of the Legal Profession Act 2004 that
complies with the requirements of Part 3.3 (Professional indemnity insurance)
of that Act.Part 3 Conduct of conveyancing business7 Section 20 exemptions—person in charge at place of
Director-General in considering whether to grant an exemption from any
provision of section 20 of the Act that will authorise a licensee to be the
licensee-in-charge) at more than one place of business of a licensee
or to exercise functions or provide services on behalf of two or more
licensees at a place of business:(a) reasons why the exemption is needed,
(c) the licensee’s capacity to comply with any guidelines issued
by the Director-General under section 21 (3) of the Act,
(d) the licensee’s record in relation to compliance with:(i) the conditions of a licence held at any time by the licensee under
the Act, the 1992 Act or the 1995 Act, and
(ii) the provisions of the Act under which the licence was held and the
provisions of the regulations under the Act concerned, and
(iii) the relevant provisions of the Legal Profession Act 1987 or the
(or both), and the relevant provisions of the regulations under the Act
(e) employer references in relation to the licensee’s experience
(2) The following additional matters are to be taken into account by
the Director-General in considering whether to grant an exemption from section
20 (1), (2) or (3) of the Act that will authorise a licensee to be the person
in charge of business (the
licensee-in-charge) at more than one place of business of a
licensee:(a) the licensee’s capacity to properly supervise the conduct of
(b) office systems proposed to be established at each place of
(c) proposed staffing and office management arrangements at each place
(d) whether there is a centralised trust account for the deposit of
will be the licensee-in-charge pursuant to the
(3) The following additional matters are to be taken into account by
20 (4) of the Act that will authorise a licensee employed as the person in
charge of business (the
provide services on behalf of two or more licensees at that place:(a) the licensee’s capacity to properly supervise the conduct of
(b) fiduciary safeguards and office systems proposed to be established
(c) whether separate trust accounts are in place for the deposit of
the licensee proposes to act pursuant to the
(4) In this clause:1992 Act
means the Conveyancers Licensing Act
1992.1995 Act
1995.8 Rules of conductThe rules set out in Schedule 3 are prescribed for the purposes of
section 22 of the Act as rules of conduct to be observed in the course of the
conduct of a conveyancing business or the exercise of functions under a
licence.9 Conduct of other businessesFor the purposes of section 28 of the Act, a licensee who conducts
a conveyancing business, or who is employed in the conduct of a conveyancing
business, is prohibited from conducting, or being employed in the conduct of,
the business of an agent (within the meaning of the Property, Stock and Business Agents Act
2002).10 Obligation to disclose certain matters to
clientFor the purposes of section 36 of the Act, a licensee who is to
carry out both conveyancing work and work that is not conveyancing work for a
client must disclose to the client, in accordance with Division 5 of Part 3 of
the Act:(a) the fact that some of the work to be carried out is not
conveyancing work, and
(b) the nature of the work that is not conveyancing
11 Itemised account(1) A request for an itemised account under section 67 of the Act may
be served on the licensee concerned by:(a) delivering it personally to the licensee, or
business of the licensee, or
(2) An itemised account requested under section 67 of the Act may be
provided to the person who made the request by:(a) delivering it personally to the person, or
person’s address in the request, or
Part 4 Resolution of costs disputes12 Notifying Tribunal of costs disputeFor the purposes of section 43 (1) of the Act, a notification to
the Tribunal of a costs dispute must be made:(a) in writing and in accordance with the requirements (for the making
of applications to the Tribunal) of section 24 (2) of the Consumer, Trader and Tenancy Tribunal Act
(b) within 60 days after the licensee has delivered to the client
concerned a bill or account of costs (being a bill or account in relation to
the costs the subject of the dispute).
13 Fee for notifying Tribunal of costs dispute(1) For the purposes of section 43 (2) of the Act, the prescribed fee
to accompany a notification to the Tribunal of a costs dispute is the amount
prescribed for the time being in respect of an application to have a matter
(with an equivalent amount in dispute) dealt with by the Tribunal in the
General Division.(2) A person is exempt from section 43 (2) of the Act to the extent
that the Tribunal (in considering that there are special reasons for so
doing):(a) directs that a fee that would otherwise be required to be paid by
the person under section 43 (2) of the Act be waived wholly or in part,
(b) postpones the time for payment by the person of the whole or part
of any such fee.
(3) A direction by the Tribunal referred to in subclause (2) (a) may
include a direction that any part of the fee waived that has been paid be
refunded.(4) The Tribunal may make any postponement referred to in subclause
(2) (b) subject to any conditions the Tribunal may think fit to
impose.14 Costs of assessmentFor the purposes of section 45 of the Act, if the Tribunal refers
a costs dispute to an independent expert for assessment, the parties are to
bear the costs of the assessment in such manner as may be ordered by the
Tribunal.15 Application for determination of costs disputeFor the purposes of section 47 of the Act, an application to the
Tribunal for the determination of a costs dispute must be made in writing and
in accordance with the requirements of section 24 (2) of the Consumer, Trader and Tenancy Tribunal Act
2001.16 Fee for application for determination of costs
dispute(1) For the purposes of section 47 of the Act, the prescribed fee to
accompany an application to the Tribunal for determination of a costs dispute
is the amount prescribed for the time being in respect of an application to
have a matter (with an equivalent amount in dispute) dealt with by the
Tribunal in the General Division.(2) A person is exempt from section 47 of the Act to the extent that
the Tribunal (in considering that there are special reasons for so
the person under section 47 of the Act be waived wholly or in part,
impose.17 Transfer of proceedings to or from other courts or
tribunals(1) For the purposes of section 50 (2) of the Act:(a) proceedings are to be transferred by order of the court hearing
the costs dispute, and
Tribunal by the registrar of the court hearing the costs dispute,
court hearing the costs dispute are to be transferred by the registrar of the
relation to the proceedings.Part 5 Trust moneyDivision 1 General18 Definitions(1) In this Part:associate, in relation to
a licensee, has the same meaning as it has in Part 8 of the
book means the record required to be kept under clause 20
(c).trust
money has the same meaning as it has in Part 5 of the
receipt book means the record required to be kept under clause 20
(a).viewable
form, in relation to a record, means a form that enables the
production of the record, on demand, in permanent legible form in the English
language.(2) A reference in this Part to a trust account is a reference to a
trust account required to be maintained by section 53 of the
Act.19 Keeping of records generally(1) A licensee must keep the records required by this Part in viewable
form.(2) A licensee must keep the records concerned (including any records
kept by means of a computer system) at the place of business where the
licensee conducts the conveyancing business under the
licence.(3) A licensee who conducts a conveyancing business under the licence
at more than one place of business is taken to comply with subclause (2) if
the licensee:(a) keeps the records relating to business transacted at a particular
place of business at that place of business, or
(b) keeps the records relating to the business transacted at each
place of business at one place of business specified in a written notice given
(4) A licensee must, within 21 days after the end of each
original, or a true copy, of the trial balance statement prepared by the
20 penalty units in any other case.20 Specific records to be kept by licenseesEvery licensee must keep the following records:(a) a trust receipt book containing the duplicates of all receipts
issued from that book (the duplicates being machine-numbered consecutively to
correspond with the machine-numbered receipts),
(b) a deposit book of an authorised deposit-taking institution
referred to in section 53 (1) (c) showing all deposits made by the licensee
into the trust account or some other written or electronic record showing
those deposits,
(c) a trust account cash book or some other written or electronic
record of all receipts of amounts required to be paid into, and of all
payments made from, the trust account.
21 Computer records(1) A licensee who keeps records for the purposes of this Part by
means of a computer system must comply with this clause.Maximum penalty: 40 penalty units in the case of a corporation or
20 penalty units in any other case.(2) The licensee must keep a record, compiled in chronological
following information, showing the details of the information before and after
the change:(a) client name,
(f) trust account number.
(3) The licensee must ensure that computer programs relating to
ledgers:(a) are not capable of accepting the entry of a transaction resulting
in a debit balance to an account unless a contemporaneous record of the
transaction is made in such a manner as to enable the production in viewable
form of a separate chronological report of all such occurrences,
(b) are not capable of amending the particulars of a transaction
already recorded otherwise than by a separate transaction effecting the
(c) are not capable of deleting an account unless:(i) the balance of the account is zero, and
(ii) when the account is deleted, a record of the account will be
retained in viewable form.
(4) The licensee must also ensure the following:(a) that each computer program requires input in each field of a data
entry screen intended to receive information that this Regulation requires to
be included in trust records,
(b) that entries in the ledger of a journal balance before further
entries are made,
(c) that journal reference numbers are allocated in sequence by the
(d) that entries in a record retained in viewable form appear in
(e) that a report, or each page of or entry in a report, is numbered
in sequence by the computer program in a manner that enables easy verification
of the completeness of the records that this Regulation requires to be
(f) that a back-up copy of all records that this Regulation requires
to be kept that are kept by means of a computer system is made on a computer
disk or magnetic tape, or by other electronic means, at least once in every
(g) that the most recent back-up copy is kept in such a place that any
incident (such as a power or disk failure) that could adversely affect the
records would not also affect the back-up copy.
22 Statements of account(1) A licensee must, in accordance with this clause, furnish to each
person for whom or on whose behalf money is held by the licensee a separate
statement of account in respect of the ledger account maintained for the
person.(2) The statement of account must be furnished:(a) within 14 days after the licensee receives a written request for
the statement, and
(b) within 21 days after each of the following:(i) completion of the matter to which the ledger account
(ii) the closure and removal of the account from the relevant
(iii) except as provided by subclause (4)—31 March and 30
(3) The statement of account must contain particulars of:(a) the money received and held by the licensee for or on behalf of
the person in the course of the licensee’s conveyancing business,
subclause (2) (b) (iii) if, at the relevant day:(a) the account has been open for less than 6 months,
(d) the licensee has received a notice under subclause (5) waiving
(5) A person for whom, or on whose behalf, money is held by a
licensee:(a) may, by written notice to the licensee in accordance with Form 1,
waive compliance by the licensee with the requirements of subclause (2) (b)
(b) may, by further written notice to the licensee, revoke the
file to which it relates.Maximum penalty: 40 penalty units in the case of a corporation or
20 penalty units in any other case.23 Receipt and withdrawal of money for costs and
disbursements(1) This clause prescribes, for the purposes of section 53 (3) (a) of
the Act, the procedure to be followed by a licensee to permit the licensee to
withdraw or receive, from trust money, money due to the licensee for
costs.(2) The licensee:(a) must have disclosed, in accordance with Division 5 of Part 3 of
the Act, the costs and other matters required to be disclosed under section 36
of the Act to the person from whom the licensee has received trust money,
(b) must be able to claim, in terms of section 39 of the Act, that the
disclosure was not required because, in the circumstances, it was not
reasonable to require it.
(3) However, a licensee who complied with Part 11 of the Legal Profession Act 1987, or with
Part 3.2 of the Legal Profession Act
2004, in relation to trust money received by the licensee
before the commencement of Part 5 of the Conveyancers Licensing Act 2003 is
taken, for the purposes of section 53 (3) (a) of the Act, to have complied
with subclause (2) in respect of so much of that money as is still held by the
licensee on that commencement.Note. Section 16 of the Conveyancers
Licensing Act 1995 provided that Part 11 of the Legal Profession Act 1987 applied
to the fees charged by a licensee in the same way as it applied to the costs
charged by a solicitor, subject to such modifications as were prescribed by
the regulations (no modifications were prescribed). Part 11 dealt with costs,
including disclosures as to costs. On the repeal of the Legal Profession Act 1987, Part 11
was replaced by Part 3.2 of the Legal
Profession Act 2004 and the reference in section 16 of the
Conveyancers Licensing Act
1995 was updated accordingly—see clause 179 of, and
Schedule 6 to, the Legal
Profession Regulation 2005.(4) The licensee must deliver to the person a bill or account of the
costs together with written notice that, unless the person objects, the
licensee intends to withdraw the money and to apply it towards payment of the
bill or account at the expiration of 30 days after the
delivery.(5) One of the following circumstances must apply:(a) the person has authorised in writing the withdrawal or
(b) the period of 30 days specified in the notice accompanying the
bill or account has expired without the person having made an
(c) the person, having made an objection within that specified period,
has not, within the time limited by clause 12, notified the Tribunal of a
dispute in relation to the costs concerned.
Division 2 Trust accounts24 Banking of trust moneyA licensee who receives trust money must pay it into the
20 penalty units in any other case.25 Receipts for trust money(1) A licensee must cause a receipt to be prepared in accordance with
this clause immediately after the licensee receives trust money for or on
behalf of any person.(2) The following particulars must be shown on each receipt:(a) the date of issue,
(b) the number of the receipt,
(c) the name of the licensee, or (if appropriate) the business name
under which the licensee conducts the conveyancing business, and the words
“Trust Account”,
(3) A copy of the particulars shown on the receipt must be made
simultaneously:(a) on the machine-numbered duplicate form provided in the trust
receipt book (if the receipt is issued from that book), or
(b) in the cash book (if the receipt is issued otherwise than from the
trust receipt book).
(c) duplicate receipts (except in the case of receipts referred to in
subclause (3) (b)).
20 penalty units in any other case.26 Payment of trust money(1) A licensee must ensure that trust money is not drawn from the
licensee’s trust account otherwise than by cheque or electronic funds
transfer in accordance with this clause (including the record keeping
requirements of this clause).Maximum penalty: 40 penalty units in the case of a corporation or
20 penalty units in any other case.(2) Each cheque must:(a) be machine numbered in series, and
(d) contain the name of the licensee, or (if appropriate) the business
name under which the licensee conducts the conveyancing business, and the
words “Trust Account”, and
clause 32 to sign the cheque.
kept of:(a) the number and date of issue, the payee and the amount of the
(4) The licensee must ensure that a record of the following is kept in
relation to each electronic funds transfer:(a) the name of the person effecting the transfer and, if the transfer
is effected under the direction of some other person or under an authority
delegated under clause 32, the name of the person under whose direction or
delegation the transfer is effected,
the transfer, the date of the transfer, the payee and the amount transferred
to or from each ledger account,
and ledger reference number of each person on whose behalf the transfer was
27 Trust deposits(1) A licensee who makes a deposit of money to the licensee’s
20 penalty units in any other case.(2) This clause does not apply to a deposit of money made directly to
a licensee’s trust account (except a deposit made by the licensee),
electronically or otherwise.28 Cash book record of trust account transactions(1) A licensee must keep in the cash book, in accordance with this
clause, a record of daily receipts and payments of money into and out of the
licensee’s trust account.(2) The pages of the cash book must be consecutively
numbered.(3) The cash book must show the following:(a) the consecutive numbers of receipts issued or
(b) the consecutive numbers of cheques drawn or
(4) The particulars of payments of money into and out of a
licensee’s trust account that are required by this clause must be
entered in the cash book as soon as is practicable after the receipt or
payment of the money concerned.(5) When money required to be paid into the trust account is received,
the licensee must enter the following particulars in the cash book:(a) the date of issue of the receipt,
(c) the name of the person from whom the payment was
(d) the name and ledger reference number of the person on whose behalf
(e) particulars sufficient to identify the transaction in respect of
(f) the amount of money received and whether (or the extent to which)
(g) the date of the deposit of the money to the trust
(h) the amount of the deposit.
(6) When money is paid out of the trust account, the licensee must
enter into the cash book the particulars required by clause 26 (3) to be
recorded for a cheque or required by clause 26 (4) to be recorded for an
electronic funds transfer.(7) At the end of each named month, the licensee must balance the cash
book and either:(a) carry forward the balance to the commencement of the next month,
(8) The licensee must, at the end of each named month, prepare a
the balance of the related cash book.Maximum penalty: 40 penalty units in the case of a corporation or
20 penalty units in any other case.29 Journal(1) A licensee must record, in accordance with this clause, in a
journal maintained exclusively for the licensee’s trust account, all
transfers between accounts in the trust account ledger that are not effected
by cheque or electronic funds transfer.(2) The recording must include the following:(a) the date of the transfer,
20 penalty units in any other case.30 Trust account ledger(1) A licensee must maintain, in accordance with this clause, a
separate ledger account for trust money received on behalf of or paid to each
client.(2) The ledger account must include the name of the client, a
prepare, in accordance with subclause (2), a trial balance statement of all
ledger accounts current as at the end of that
month.(2) The trial balance statement must:(a) specify the month to which it refers and the date of its
other identification and the balance of the account at the end of the month,
20 penalty units in any other case.32 Signing of cheques or effecting electronic funds
partner has authority to sign a cheque (a trust cheque) drawn on,
or to effect an electronic funds transfer (a trust EFT) from, the
licensee’s trust account.(2) A licensee in charge of a place of business has authority to sign
trust cheques or effect trust EFTs may delegate that authority:(a) if the licensee is a corporation, to one or more directors of the
corporation each of whom is a licensee, and to not more than 2 employees at
each place of business of the corporation, or
case.33 Account in the name of a licensee(1) A licensee may maintain in his or her trust account ledger an
account in his or her name:(a) for the purpose of aggregating in the account, by transfer from
other accounts in the trust account ledger, money properly due to the licensee
for costs and disbursements, and
lessee or in other like capacity.
(1) (a) not later than 21 days after the day on which the money is transferred
periodic payments—not later than 6 months after the date on which the
20 penalty units in any other case.Part 6 Records34 Records that licensees must keep(1) A licensee must keep the following records relating to any
transaction carried out by the licensee or the licensee’s employees in
connection with conveyancing work carried out by them:(a) originals or copies of all documents evidencing the transaction
concerned (for example, agreements, conveyances, transfers, leases and
mortgages) and all associated documents (for example, documents required by
law to be attached to contracts for the sale of land, inspection reports,
requisitions on title and responses to such requisitions),
(b) originals or copies of all other documents and records maintained,
issued or received by the licensee or the licensee’s employees (for
example, letters, file notes, invoices and settlement
(2) The licensee must ensure that the records required to be kept
under subclause (1) in relation to a transaction are kept in a separate file
(relating only to that transaction) for the client
concerned.Maximum penalty: 40 penalty units in the case of a corporation or
20 penalty units in any other case.35 Period for which records must be retained(1) A licensee must retain a record required to be kept under clause
34 or Part 5 (including any such record the possession of which the licensee
has lawfully acquired as a consequence of a transfer to the licensee of a
conveyancing business) for at least 6 years after it is made and provide for
its safe keeping throughout that time.Maximum penalty: 40 penalty units in the case of a corporation or
20 penalty units in any other case.(2) However, subclause (1) does not apply to the licensee if the
record has passed to the lawful possession of another licensed conveyancer or
a solicitor as a consequence of the transfer of the licensee’s
conveyancing business.36 Records and book entries to be in English
made or produced by the licensee, by the provisions of the Act or this
Regulation, are in the English language.Maximum penalty: 40 penalty units in the case of a corporation or
20 penalty units in any other case.Part 7 General37 The Register(1) The Director-General is to enter and keep in the Register required
to be maintained under section 162 of the Act details of the following
particulars in respect of each licence issued under the Act:(a) the name and business address of the person to whom the licence is
(b) the number of the licence,
(c) date of issue and expiry,
(d) in the case of a licence issued to a member of a partnership, the
(e) in the case of a corporation licence, the name and business
(f) the cancellation or any current suspension of the
(g) any condition of the licence under section 14 (a)–(d) of the
(h) action taken under Part 9 (Complaints and disciplinary action) of
the Act against the licensee that resulted in an adverse finding against the
licensee, together with details of any disciplinary action taken against the
licensee as a result of that adverse finding,
(i) proceedings for any offence under the Act or this Regulation taken
against the licensee that resulted in a conviction for any such offence,
together with details of any penalty imposed for the
(j) current undertakings given under the Act by the
(k) the appointment of a manager or receiver under the Act in respect
(l) the number of payments made from the Compensation Fund under Part
10 of the Property, Stock and Business
Agents Act 2002 in respect of any failure to account of the
(m) the suspension of the licence under section 79A of the Fair Trading Act
(n) action in the nature of disciplinary action taken under any other
legislation administered by the Minister against the licensee that resulted in
an adverse finding against the licensee, together with details of any action
taken against the licensee as a result of that adverse
details of any application for a licence that is refused on the ground that
the applicant is not a fit and proper person to hold a
licence.(3) Details entered in the Register under subclause (2) in respect of
on the subsequent grant of a licence to the person.(4) Details entered in the Register under subclause (1) (h) or (i) are
relate.38 Complaints and disciplineThe following provisions of the Act are prescribed as provisions
that remain applicable to a suspended licence for the purposes of section 133
(3) of the Act:(a) section 66 (Director-General may require
(b) section 72 (Power to require production of licensee’s
(c) sections 75 (Requirement for audit) and 77 (Statutory declaration
required where no money held or received on behalf of another person), except
when a receiver or manager has been appointed,
(d) section 88 (Claims can be made against Compensation Fund) to the
extent that it applies section 179 of the Property, Stock and Business Agents Act
2002 (Production of documents),
(e) section 95 (Powers of a manager),
(f) section 152 (Fraudulent conversion and false accounts of money
received by licensee),
(g) section 153 (Fraudulent accounts for expenses, fees and other
2002Section 10 (Applications for restoration of licences) of the
Procedures) Act 2002 does not apply in respect of a licence
that has been cancelled under Part 9 (Complaints and disciplinary action) of
2003.40 Corporate licenseesA licensee that is a corporation meets any obligation it may have
under section 77 of the Act if the requisite statutory declarations are made
and lodged in accordance with that section by:(a) if the corporation has only one director—the director of the
(b) if the corporation has more than one director—any two
41 Penalty notice offences and penaltiesFor the purposes of section 158 of the Act:(a) each offence created by a provision specified in Column 1 of
Schedule 4 is an offence for which a penalty notice may be served,
specified opposite the provision in Column 2 of Schedule 4 or, if the person
is specified in Column 3 of Schedule 4, the amount specified in Column 3 of
Part 8 Transitional provisionsDivision 1 Preliminary42 DefinitionsIn this Part:controlled
money means money that, immediately before the repeal of the former
Act, was controlled money within the meaning of that Act.the former
Licensing Act 1995.the former
Regulation means the Conveyancers Licensing Regulation
2001.the 2003
Licensing Act 2003.Division 2 Transitional provisions relating to controlled
money43 Part 5 and controlled moneyPart 5 of the 2003 Act does not apply to controlled money held by
a licensee immediately before the repeal of the former Act unless the
controlled money is transferred to a trust account in accordance with clause
44 (1) (a).44 Manner of dealing with controlled money(1) A licensee who was holding controlled money immediately before the
repeal of the former Act must:(a) with the written approval of the person on whose behalf the
licensee is carrying out the relevant conveyancing work, open a separate trust
account for the benefit of that person and transfer the controlled money to
that trust account, or
(b) deal with, and account for, the money in accordance with the
former Act and the former Regulation, as provided by clause
20 penalty units in any other case.(2) On being transferred to a trust account as provided by subclause
(1) (a), the controlled money concerned becomes trust money within the meaning
of Part 5 of the 2003 Act.45 Controlled money not transferred to trust
accountDespite the repeal of the former Act and the former Regulation,
the following provisions of that Act and that Regulation continue to apply, as
if they had not been repealed, to and in respect of controlled money:(a) sections 25–28 of, and the relevant definitions in the
Dictionary to, the former Act,
(b) clauses 3 (Definitions) and 29 (Delegation) and Divisions 1
(General), 3 (Controlled money) and 4 (Registered company auditor’s
report) of Part 4 (Trust money and controlled money) of, and Schedule 1
(Forms) to, the former Regulation.
Division 3 Other transitional provisions46 Audit periodDespite section 76 of the 2003 Act, the period beginning on 1
April 2006 and ending on 30 June 2007 is taken to be the audit period in
respect of the first audit required to be made (and the auditor’s report
on that audit required to be submitted) under section 75 of the 2003
Act.47 Approved policy of professional indemnity
insuranceThe policy for professional indemnity insurance approved by the
Minister by the Conveyancers Licensing
Amendment (Vero Insurance) Order 2006 is taken to be a policy
approved by the Minister under clause 6 (2) (a).Note. The policy of professional indemnity insurance approved by the
Amendment (Vero Insurance) Order 2006 covers the period from 1
July 2006 to 30 June 2007.Schedule 1 Forms(Clause 3 (2))Form 1 Waiver(Clause 22)(Conveyancers
Licensing Act 2003)(Conveyancers Licensing Regulation
2006)ToLicensed Conveyancer,[address]Re:I/We acknowledge that I/we have instructed you to hold money on
my/our behalf.I/We am/are aware that while you continue to hold my/our money
I/we am/are entitled to receive from you a periodical statement of account in
accordance with the provisions of clause 22 of the Conveyancers Licensing Regulation
2006, the terms of which are set out on, or attached to, this
statement of account provided for by clause 22 (2) (b) (iii) of the
Regulation.*This waiver continues until [specify date] unless revoked
earlier in writing.*This waiver continues until revoked in writing.Signature:Date:* Delete as appropriate.Schedule 2 Fees(Clause 5)
Column 1Column 2Column 3Nature of fee payableFixed componentProcessing componentApplication fee for grant of licence$210$191Application fee for renewal of
licence$210$62Application fee for restoration of
licence$210$127Application fee for replacement of
licenceNil$41Note. Section 89 of the Conveyancers
Licensing Act 2003 provides that an applicant for a licence is
liable to pay the contribution to the Compensation Fund, and any levy for that
Fund, required to be paid from time to time under section 168 or 169 of the
2002. Regulations made under that Act specify the amount of
the contribution payable by the applicant for the licence concerned. That
amount (and any levy) is payable in addition to the amount of an application
fee prescribed by this Regulation for the grant, renewal or restoration of a
licence.Schedule 3 Rules of conduct(Clause 8)1 Knowledge of Act and this RegulationA licensee must have a knowledge and understanding of the Act and
this Regulation, and such other laws as may be necessary to enable the
licensee to exercise his or her functions as a conveyancer
lawfully.2 Honesty, fairness and professionalism(1) A licensee must act honestly, fairly and professionally with all
parties in a transaction.(2) A licensee must not misinform or otherwise mislead or deceive any
parties in negotiations or a transaction.3 Skill, care and diligenceA licensee must exercise reasonable skill, care and
diligence.4 Fiduciary obligationsA licensee must comply with the fiduciary obligations arising from
the licensee’s activities as a conveyancer.5 To undertake only work within competenceA licensee must not accept instructions to act as a conveyancer
unless the licensee is competent to perform the conveyancing work
concerned.6 To perform work promptlyA licensee must only accept instructions to act as a conveyancer
if he or she reasonably expects to be able to carry out the conveyancing work
concerned reasonably promptly.7 To act in client’s best interestsA licensee must act in the client’s best interest at all
times unless it would be contrary to the Act or this Regulation or otherwise
unlawful to do so.8 To communicate regularly with clientA licensee must communicate regularly with a client to ensure that
the client is kept up to date with the progress of the client’s
matter.9 To act in accordance with client’s
instructionsA licensee must act in accordance with a client’s
instructions unless it would be contrary to the Act or this Regulation or
otherwise unlawful to do so.10 To confirm client’s oral instructions in
writingA licensee must ensure that oral instructions (other than those of
a trivial nature) received from a client are confirmed with the client in
writing as soon as possible after they are received.11 Conflicts of interestA licensee must not accept instructions to act, or continue to
act, as a conveyancer for a client if doing so would place the
licensee’s interests in conflict with the client’s
interests.12 Acting for more than one party to a transaction(1) A licensee may only act for more than one party to a transaction
if the licensee discloses in writing to each party that the licensee is
intending to act for the others, and each party consents in writing to the
licensee so acting.(2) If a licensee who is acting for more than one party cannot
continue to act for all of the parties without acting in a manner contrary to
the interests of one or more of them, the licensee must cease to act for all
of the parties.(3) The disclosure referred to in subclause (1) must indicate that, as
a consequence of acting for more than one party to the transaction:(a) the licensee may be prevented from:(i) disclosing to each party all information within the
licensee’s knowledge that is relevant to the transaction,
(ii) giving advice to one party that is contrary to the interests of
(b) the licensee will cease to act for all parties if the licensee
would, otherwise, be obliged to act in a manner contrary to the interests of
13 ConfidentialityA licensee must not, at any time, use or disclose any confidential
information obtained while acting on behalf of a client unless:(a) the client authorises disclosure, or
(b) the licensee is permitted or compelled by law to disclose the
14 Noting of instructions, enquiries and telephone
conversations(1) A licensee must make a written record of the following
communications (other than those of a trivial nature):(a) all instructions received from the licensee’s clients and
(b) all telephone conversations made or received in connection with
conveyancing work,
(c) all enquiries made in connection with conveyancing work and
(2) The record must be in the form of a file note and be kept on the
file of the client to whom the conveyancing work
relates.(3) The record must be retained for at least six years after it is
made.(4) A record required to be kept under this rule may be maintained in
electronic form, provided it can be produced in a permanent legible form in
the English language.15 Referral to service provider(1) A licensee who refers a client or prospective client to a service
provider must not falsely represent to the client or prospective client that
the service provider is independent of the
licensee.(2) A service provider is considered to be independent of a licensee
if:(a) the licensee receives no rebate, discount, commission or benefit
for referring a client or customer to the service provider,
(b) the licensee does not have a personal or commercial relationship
(4) If the service provider is not independent of the licensee, the
licensee must disclose to the client or prospective client:(a) the nature of any relationship, whether personal or commercial,
the licensee has with the service provider, and
benefit the licensee may receive, or expects to receive, by referring the
client or prospective client to the service
(5) In this rule:service
provider means a person who provides a service in relation to a
conveyancing transaction (for example, a building inspector, pest inspector,
valuer, surveyor, insurer, mortgage originator, mortgage broker or another
licensee).16 InducementsA licensee must not offer to provide to any other person any gift,
favour or benefit, whether monetary or otherwise, in order to induce any third
person to engage the services of the licensee as conveyancer in respect of any
matter.17 Soliciting through false or misleading advertisements or
communications(1) A licensee must not solicit clients or customers through
advertisements or other communications that the licensee knows or should know
are false or misleading.(2) A licensee must not include any matter (including any statement,
slogan or logo) on stationery or business cards used in connection with
conveyancing work that the licensee knows or should know is false or
misleading.18 Termination of licensee’s servicesA licensee must complete the conveyancing work in respect of which
the licensee has accepted instructions to act for a client unless:(a) the licensee and the client have otherwise agreed,
(b) the client terminates the services of the licensee,
(c) the licensee terminates the provision of services to the client by
giving 14 days written notice to the client.
19 Transfer of conveyancing workIf:(a) a licensee ceases to act for a client before completing the
conveyancing work in respect of which the licensee has accepted instructions
to act for a client, and
(b) the client instructs another licensee or a solicitor to take over
the conduct of the client’s conveyancing
the first-mentioned licensee must, within 14 days after receipt of a
direction in writing from the client, deliver to the second-mentioned licensee
or the solicitor all relevant documents to which the client is entitled and
any information that is necessary for the proper conduct of the client’s
conveyancing work.20 Transfer of conveyancing business(1) If a licensee intends to transfer the whole or part of the
licensee’s conveyancing business (including clients’ work in
progress) to another licensee or a solicitor, the first-mentioned licensee
must give each client 14 days written notice of the following:(a) the intended transfer of documents to the licensee or solicitor
acquiring the business, unless a contrary direction is received from the
(b) the client’s right to give to the first-mentioned licensee a
contrary direction in relation to the conduct of the client’s affairs
and the delivery of the client’s documents.
(2) If the licensee holds money on behalf of the client in trust, the
notice referred to in subclause (1) must also advise the client of the
following:(a) the balance of money held on the client’s
(b) the licensee’s intention to transfer the relevant account to
the licensee or solicitor acquiring the business, unless advised by the client
(c) the client’s right to give to the first-mentioned licensee a
contrary direction as to the manner in which the licensee should deal with the
account on the client’s behalf.
(3) Nothing in this rule limits the operation of any other legislative
provisions applicable to the trust money held by the
licensee.21 Conducting another business(1) A licensee who engages in the conduct of another business
concurrently with the conduct of the licensee’s conveyancing business
must ensure the following:(a) that the other business is not of such a nature that the
licensee’s involvement in it would be likely to impair, or conflict
with, the licensee’s duties to clients in the conduct of the
(b) that separate and independent files, records and accounts are
maintained in respect of the conveyancing business and of the other
(c) that the licensee ceases to act for a client of the conveyancing
business if the licensee’s interest in the other business is likely to
(2) A licensee is taken to be engaged in the conduct of another
business if the licensee, or an associate:(a) is entitled, at law or in equity, to an interest in the assets of
the business which is significant or of relatively substantial value,
(b) exercises any material control over the conduct and operation of
the business, or
(c) has an entitlement to a share of the income of the business which
is substantial, having regard to the total income which is derived from the
22 Independence of licensee advising on loan or security
documents(1) A licensee must provide competent, independent and disinterested
advice in advising a proposed signatory to documents creating a loan or a
security interest (loan or security
documents).(2) The licensee must not act for the lender in the transaction to
which the loan or security documents relate.(3) The licensee must not advise a proposed signatory to loan or
security documents in any circumstances where the interests of any signatory
or proposed signatory to the documents conflict with those of the licensee or
with those of any other client of the licensee.23 Advising proposed signatories on loan or security
documents(1) A licensee must advise a proposed signatory to documents creating
a loan or security interest (loan or security
documents) of those matters that the licensee, in exercising the
professional skill and judgment called for in the circumstances of the
particular case, considers appropriate.(2) Without limiting the generality of subclause (1), when advising a
proposed signatory who is to be a borrower or a security provider referred to
as a borrower in loan or security documents (the borrower), the licensee
must, where applicable, advise the borrower of the following:(a) that by signing the documents the borrower will be liable for
regular payments of interest and repayment of the amount of the loan at the
(b) that if the borrower fails to make any payment on time, the lender
can charge a higher rate of interest, and the lender’s costs of
rectifying that failure,
(c) that if the borrower fails to comply with any of the terms and
conditions of the loan including the obligations to pay principal or
interest:(i) the lender can sue the borrower personally,
(ii) the lender may take possession of the borrower’s property
and, after notice, sell it to recover the amount owing together with interest
and other costs including conveyancer’s costs, the costs of selling the
property and the costs of maintaining the property, and
(iii) if the proceeds of sale of the borrower’s property are
insufficient to satisfy the debt to the lender, the lender can sue the
borrower for the deficit,
(d) that if the National Credit
Code applies, additional obligations, rights and remedies may
apply as set out in the loan documents.
(3) A licensee giving independent advice to a proposed borrower must
obtain the borrower’s written acknowledgment of the independent
advice.(4) Without limiting the generality of subclause (1), when advising a
proposed signatory who is to be a third party mortgagor, guarantor, surety
mortgagor or indemnifier providing security for the borrower (the guarantor), the licensee
must, where applicable, advise the guarantor of the following:(a) that if the borrower fails to make any payment on time, the
guarantor will be liable to remedy that failure, and that could involve the
guarantor in payment to the lender of all amounts owed by the borrower to the
lender including principal, interest, default interest and the lender’s
costs of rectifying the default,
(b) that if the guarantor fails to remedy any failure by the borrower
to comply with the terms and conditions of the loan in any way, including the
obligation to pay principal, interest, default interest, or other
charges:(i) the lender can sue the guarantor personally,
(ii) the lender can take possession of the guarantor’s property
secured to the lender and, after notice, sell it to recover the amount owing
together with interest and other costs including conveyancer’s costs,
the costs of selling the property and the costs of maintaining the property,
(iii) if the proceeds of sale of the guarantor’s property are
guarantor for the deficit,
(c) if the guarantor is a proposed signatory to documents under which
the guarantor’s liability can be increased, of that fact and the extent
of the possible increase, and of any restriction or limitation of the
guarantor’s rights or obligations in relation to the security and any
other party to the documents,
(d) that the lender can exercise the lender’s rights against the
guarantor even if the lender has not pursued the borrower,
(e) that the liability of the guarantor is limited to a specified sum,
or is unlimited (whichever is the case) and may be affected by cross
(f) that if the National Credit
(5) A licensee giving independent advice to a proposed guarantor must
obtain the guarantor’s written acknowledgment of the independent
advice.(6) In any case, a licensee advising a proposed signatory (whether a
proposed borrower or a proposed guarantor) must advise the proposed signatory
of the following:(a) that the licensee does not profess any qualification to give
(b) that if the proposed signatory has any questions about any
financial aspect of the transaction or the loan or security documents, the
proposed signatory should consult an accountant or other financial counsellor
of the proposed signatory’s choice before signing the
(7) In this clause:National
Credit Code means the National Credit
Code as set out in Schedule 1 to the National Consumer Credit Protection Act
2009 of the Commonwealth.Schedule 4 Penalty notice offences(Clause 41)
Column 1Column 2Column 3ProvisionPenaltyPenaltyOffences under the
Actsection 6 (1)$1,100 section 19 (1)$550 section 19 (3)$550 section 20 (1)$1,100$2,200section 20 (2)$1,100$2,200section 20 (3)$1,100$2,200section 20 (4)$1,100$2,200section 21 (1)$1,100$2,200section 24 (1)$550 section 25$1,100 section 26 (1)$1,100$2,200section 27 (1)$1,100$2,200section 28 (2)$1,100$2,200section 29 (5)$550 section 31 (1)$550 section 31 (2)$550 section 31 (3)$550 section 32$550 section 33$550 section 35$1,100 section 36 (1)$1,100$2,200section 53 (6)$1,100 section 53 (7)$1,100 section 56$1,100 section 58$1,100 section 59$1,100 section 60$1,100 section 64 (6)$550 section 68 (1)$1,100 section 74 (1) (a)$1,100 section 74 (1) (b)$1,100 section 74 (1) (c)$1,100 section 74 (1) (d)$1,100 section 74 (3)$110 section 75 (1) (a)$550$1,100section 75 (1) (b)$550$1,100section 75 (3)$550$1,100section 77$550 section 83 (1)$5,500 section 83 (3)$1,100$1,100section 84$1,100 section 110 (1)$1,100 section 112 (a)$1,100 section 112 (b)$1,100 section 112 (c)$1,100 section 112 (d)$1,100 section 112 (e)$1,100 section 130 (2)$550 section 143$1,100$2,200section 144$220$440section 161 (1)$220 Offences under this
Regulationclause 19 (1)$550$1,100clause 19 (2)$550$1,100clause 19 (4)$550$1,100clause 21 (1)$550$1,100clause 22 (1)$550$1,100clause 22 (6)$550$1,100clause 24$550$1,100clause 25 (1)$550$1,100clause 25 (6)$550$1,100clause 27 (1) (b)$550$1,100clause 28 (1)$550$1,100clause 28 (5)$550$1,100clause 28 (6)$550$1,100clause 29 (1)$550$1,100clause 30 (1)$550$1,100clause 31 (1)$550$1,100clause 32 (7)$550$1,100clause 32 (8)$550$1,100clause 34 (1)$550$1,100clause 34 (2)$550$1,100clause 35 (1)$550$1,100clause 36$550$1,100Historical notesThe following abbreviations are used in the Historical notes:
Licensing Regulation 2006 (707). GG No 175 of 8.12.2006, p
10390. Date of commencement, 15.12.2006, cl 2. This Regulation has been
2007(252)Conveyancers Licensing Amendment
(Fees) Regulation 2007. GG No 80 of 15.6.2007, p 3736.Date of commencement, 1.7.2007, cl 2.
2008(224)Conveyancers Licensing Amendment
(Fees) Regulation 2008. GG No 76 of 27.6.2008, p 6001.Date of commencement, 1.7.2008, cl 2.
2009(145)Conveyancers Licensing Amendment
(Fees) Regulation 2009. LW 1.5.2009.Date of commencement, 1.7.2009, cl 2.
(150)Conveyancers Licensing Amendment
(Fees) Regulation 2010. LW 30.4.2010.Date of commencement, 1.7.2010, cl 2.
Provisions) Act 2010. Assented to 28.6.2010.Date of commencement of Sch 2.17, 9.7.2010, sec 2
2011(212)Conveyancers Licensing Amendment
(Fees) Regulation 2011. LW 2.5.2011.Date of commencement, 1.7.2011, cl 2.
Provisions) Act 2011. Assented to 27.6.2011.Date of commencement of Sch 2.11, 8.7.2011, sec 2
2012(177)Conveyancers Licensing Amendment
(Fees) Regulation 2012. LW 11.5.2012.Date of commencement, 1.7.2012, cl 2.
Cl 5Am 2008 (224), Sch 1 [1].Cl 6Am 2010 No 119, Sch 3.3.Cl 12Am 2010 No 59, Sch 2.17 [1].Cl 13Am 2010 No 59, Sch 2.17 [2].Cl 15Am 2010 No 59, Sch 2.17 [1].Cl 16Am 2010 No 59, Sch 2.17 [2].Cl 37Am 2011 No 27, Sch 2.11.Sch 2Subst 2007 (252), Sch 1; 2008 (224), Sch 1 [2];
2009 (145), Sch 1; 2010 (150), Sch 1; 2011 (212), Sch 1; 2012 (177), Sch
1.Sch 3Am 2010 No 6, Sch 2.3 [1] [2].