The Queensland State Parliament is currently in the final stages of bringing about the Queensland Property Occupations Bill 2013 (“the Bill“).

The Bill (once passed) will replace the Property Agents and Motor Dealers Act 2000 (“PAMDA“). The objective of the change is to reduce the complexity and level of technical regulatory requirements found in residential and rural property transactions.

What Changes To The Current Regime Will The Bill Have?

Appointment Of Agent

• appointing an agent will be simplified into one form (compared to several at present),
• no longer will an end date need to be specified for continuing appointments,
• sole or exclusive agency length of appointment could be for 90 days (instead of the current 60 days),
• requirement to state how services are performed will not be required,
• open listings may be terminated at any time by either party with written notice,
• no requirement to seek client’s consent prior to assignment of agency appointment to another agency, and
• assignee will be required to provide notice of appointment within 14 days after assignment has been effected.

Pre-contract

• deregulation of real estate agent commission caps for residential and rural property,
• agents will be allowed to receive commission for beneficial interest sales, provided the seller acknowledges and agrees to them acquiring a beneficial interest in the seller’s property,
• agents and auctioneers will be prohibited from disclosing a price guide for any residential property to be sold at auction, and
• this includes the inability to disclose the reserve price for the property (they can disclose that there is a reserve price).

Contract

• the agent is no longer required to tell the buyer the commission being received from the seller,
• replacement of current PAMDA 30C Warning Statements (inserted at front of contract), with a more simple warning statement to be included on the same page where the buyer signs the contract,
• the right to terminate for failure to provide the new warning statement would no longer exist, however, the seller or agent (depending on who provided the contract to the buyer) will have committed an offence (maximum penalty 200 points),
• it will no longer be a requirement to provide a Body Corporate and Community Management Act 1997 (Qld) Form 14 Information Sheets to Contracts (in instances of both residential and non-residential property),
• there will no longer be a requirement to notify the prospective buyer, pre-contract, that the use of land for residential purposes is unlawful, and
• a buyer can waive or shorten the cooling-off period by providing notice to the seller (removing requirement for a lawyer’s certificate (PAMDA Form 32A)) and cooling off period will generally only apply to ‘relevant contracts’.

Other

• property developers (or their employees) no longer have to be licensed,
• restrictions for resident letting agents being able to provide letting services for more than one building complex and being required to live on-site will be removed from licensing provisions (they still need to comply with relevant terms of their individual agreements with the body corporate),
• multiple offices will be able to be operated by a licensee or registered salesperson, however they will still be required to take reasonable steps to ensure their salespersons are complying with the Act and properly supervised,
• no longer will a licence need to be displayed at the place of business (however, must be shown when requested),
• the requirement for an employee register to be kept will be abolished, and
• existing offences (and penalties) under PAMDA will continue under this new Act, with new categories of offences and penalties being introduced.

The Bill does go somewhat to reduce the level of regulation that is placed upon agents and developers in their dealings with purchasers.

However, there is also the risk that some of the consumer protection previously available through PAMDA will not be available for purchasers.

How We Can Help

It is important that moving forward that the new legislation follows a ‘common-sense’ approach by all agents and developers, and that purchasers are still mindful to ensure that they obtain legal advice before signing a contract.

Quinn & Scattini Lawyers are experienced reviewing contracts and take the time to review contracts with a fine-tooth comb to ensure there are no surprises.

As one of our clients said “Invest in the best. Q&S“.

Contact Us

Get the best representation. Contact Quinn & Scattini Lawyers on 1800 999 529, email mail@rmold.newwebsite.live, or submit an enquiry below.

We are available to meet with you at any of our local offices (Brisbane, Gold Coast, Beenleigh, Cleveland and Jimboomba) or by telephone or video-conference.

This article is for your information and interest only. It is not intended to be comprehensive, and it does not constitute and must not be relied on as legal advice. You must seek specific advice tailored to your circumstances.