The mandatory requirement of professional indemnity insurance for the licensed property industry came into effect yesterday (January 1).
The Property, Stock and Business Agents Amendment (Professional Indemnity Insurance) Regulation 2012 was made public halfway through December and must require holders to carry cover of a minimum of $1 million for any one claim.
At least $3 million cover must be held in the collective for all claims made during the time the policy is valid.
Despite coming into effect on New Year's Day, the requirement for a policy doesn't kick in until July 1 to give licensees time to obtain the coverage.
The Real Estate Institute of New South Wales has campaigned for the introduction of indemnity insurance for many years and said that consumers and professionals will benefit from this introduction.
It comes as News Limited reports that the western suburbs of Sydney will lead the way in the recovery of Australia's property sector in 2013.
The big banks are hopeful after a string of loan applications and building approvals were spurred on by record low interest rates.
The Daily Telegraph stipulates that one institution predicts 15,000 more homes will be built this year - a level which is considered "normal".
