The Real Estate Institute of WA has described as absurd a Federal Government proposal to drop a requirement for commercial real estate agents to hold a licence.

Earlier this week, a man was fined in the Perth Magistrate's Court for selling properties without holding a current licence.

The real estate industry is fighting the Federal Government's move and REIWA president David Airey says it is vital high licensing and professional standards are maintained

"Because they want to make it simplistic and easy; they want to drop away the licensing of commercial real estate people, commercial real estate property managers and delete or reduce and not have at all continuing professional development standards as we have in Western Australia, Queensland, New South Wales and South Australia," he said.