A comparative analysis of the integrity system frameworks for real estate agents and property valuers in Australia

The Australian building industry is regulated by a complex system of federal/national and state-based acts, regulations and statutory authorities that monitor the professional conduct of practitioners by mandating specific actions, prohibiting certain behaviours and outlining penalties for non-compliance. However, while all construction professions are subject to some form of regulatory oversight, the efficacy of these mechanisms to improve professional standards varies significantly. As a result, the relationship and/or correlation between regulatory and professional standards frameworks is not always clear. To explore this relationship further, this chapter examines the regulatory regimes and broader integrity system frameworks for two building industry professions: real estate agents and property valuers. While the real estate industry is governed by a seemingly robust framework of real property legislation, statutory codes of conduct, and compliance/complaints handling by consumer watchdogs, public confidence in the ethical behaviour of real estate agents remains low in Australia. Conversely, the recent scaling-back of state-based regulatory monitoring of property valuers in favour of enhanced co-regulatory arrangements with professional associations has not diminished the profession's reputation for maintaining high ethical and professional standards. It will be argued that while laws, regulations, and statutory codes play an important role in reducing the scope for professional misconduct, these measures may be ineffective if there are weaknesses in other integrity system components.