Legislation passed to introduce Property Occupations Act 2014
The Queensland Government, in consultation with the REIQ and other industry bodies, has overhauled the Property Agents and Motor Dealers Act and have now passed the new legislation under the “Property Occupations Act 2014”.
McDonnell’s law issued the following E Alert which gives a explanation in “Simple English” of the changes.
Here is their summary :
Farewell PAMDA: Welcome to the Property Occupations Act 2014
KEY CHANGES
Key changes to the industry implemented by the Act are:
Removal of Warning Statements
Removal of the requirement for the PAMDA Form 30c Warning Statement and the BCCMA Form 14
Information Sheet to be attached to a relevant contract and signed by a buyer. Instead, only a short
warning statement will need to be included immediately above the buyer’s execution panel.
The consequence of failing to include the new warning statement will now only be a financial penalty and
the buyer will have no right to terminate the contract. However, the requirement to provide a disclosure
statement and the ability of a buyer to terminate for the failure to provide a disclosure statement will
remain.
Removal of the Cooling Off Period for Some Contracts
No cooling off period will apply to contracts entered into within two business days of an auction provided
the buyer was a registered buyer at auction.
No Disclosure of Commission and Deregulation of Commission Caps
Agents no longer need to disclose the commission they are receiving from the seller to the buyer and
commission will no longer be capped.
New Exemptions to the Act
Exemptions to the residential property sales provisions of the Act will apply when:
(a) a contract is formed because of the exercise of an option granted under an earlier contract (such
as a Put and Call Option) where the parties to the later contract are the same as the parties to the
earlier agreement; and
(b) the buyer is a publicly listed corporation or a subsidiary of a publicly listed corporation, the state or
a statutory body, or is purchasing at least 3 lots at the same time.
Agents will be exempted from the Act when selling non-residential or non-rural land if the size of the
property or the estimated value of the property exceeds a particular amount (to be later prescribed by
regulation) or both parties to the transaction own real property (other than the property the subject of the
transaction) that exceeds the size or value prescribed by regulation.
Agents or letting agents who let real property or collect rents for real property (other than residential
property or rural land) will also be similarly exempt if they are acting on behalf of an entity that owns real
property that exceeds the area or value prescribed by regulation.
Simplifying the Cooling Off Period Processes
A new simplified procedure for waiving or shortening the cooling off period has been introduced that does
not require a buyer to engage a lawyer. Further, a termination notice by a buyer terminating during the
cooling off period will not need to specify the section of the legislation under which the buyer is terminating.
Simplification of Definitions
The Act replaces the complex definition for ‘Residential Property’ provided for under PAMDA and amends
it to “real property that is used, or is intended to be used, for residential purposes but does not include real
property that is used primarily for the purposes of industry, commerce or primary production.”
Simplification of Agent Appointments
The process of appointing an agent will be streamlined and the limits of the length of sole and exclusive
agencies have been extended from 60 days to 90 days.
Changes in Licencing Requirements
The requirement to display a licence in a place of business is removed and the categories of licence are
reduced to just three licence categories and one category of registered employee.
Property developers and their employees are no longer required to be licenced however they will still need
to make some pre-contractual disclosure of any interests or benefits they have in the sale.
Notice regarding Non-Residential Vacant Land
Agents no longer need to provide buyers of non-residential vacant land with a notice stating that the land
cannot be used for residential purposes.
Removal of Requirements for Residential Letting Agents
Residential letting agents no longer need to reside on site at the complex they manage and the Act will no
longer regulate how many building complexes a residential letting agent may manage.
Banning of Price Guides at Auction
Price guides are now banned at auction however this will prevent agents setting price maximum and
minimums on real estate websites.
TRANSITIONAL ARRANGEMENTS
Until the Act receives royal assent such that the Act commences, agents will need to continue to comply with the
requirements of PAMDA. All contracts signed after the commencement of the Act will need to comply with the new
requirements, so agents should ensure that all file versions of their contracts are updated before this date.
The link to the Office of Fair Trade Web Site dealing with the changes follows :
http://www.fairtrading.qld.gov.au/splitting-of-PAMDA.htm