Introduction to the Property Occupations Act 2014
The Property Agents and Motor Dealers Act 2000 (“PAMDA”) has been replaced with four new Acts that are aimed at simplifying requirements for property agents, motor dealers, auctioneers and debt collectors. The new legislation comes into effect today, 1 December 2014, and aims to promote business, whilst at the same time ensuring that consumer protections are not reduced. This article will focus on the key changes for property agents, Buyers and Sellers.
Contained in the Property Occupations Act 2014 (“Property Act”) is a provision which defines a property agent as an auctioneer or real estate agent (“agent”). Perhaps one of the most significant effects of the Act is the removal of capped commission for agents. This means that agents will be able to negotiate their commission with clients and will be able to distinguish themselves from other agents who may offer different services.
Key changes to the REIQ Contract for Houses and Residential Land include the following:
- Title Encumbrances must be disclosed in the Contract itself, and it is not sufficient to state “refer to title”.
- The term “Business Day” has been amended to specifically exclude Saturdays and Sundays and a day in the period 27th to 31st December (inclusive). Importantly, this means that settlements will not be able to occur during the Christmas and New Year period.
- If the Buyer provides the Seller 2 days’ notice prior to settlement, then the Seller is required to deliver keys at settlement.
- Notices may now be given via email, and ‘given’ is taken to mean the time when the notice becomes capable of being retrieved by the addressee at the nominated email address.
For Residential Lots in a Community Titles Scheme, the REIQ Disclosure Statement is still required to be provided to the Buyer before a Contract is entered into in accordance with Section 206 of the Body Corporate and Community Management Act 1997 (“BCCM”). However, the BCCM Form 14 is no longer required to be attached to the front of relevant contracts.
Key changes to PAMDA Forms are as follows:
- The PAMDA Form 30c no longer exists and has been replaced with a Warning Statement located on the signing page of the Contract above the Buyer’s signature. There is no longer a requirement to draw the Buyer’s attention to the Warning Statement and Contract.
- The PAMDA Form 32a no longer exists and the cooling off period can be waived or shortened by the Buyer providing written notice to the Seller.
- The Property Occupations Form 6 has replaced 7 PAMDA Forms (including the 21a and 22a) for appointment and reappointment of an Agent, resident letting agent or property auctioneer.
- The Property Occupations Form 7 has replaced the PAMDA Form 28.
- The Property Occupations Form 8 has replaced the PAMDA Form 27c.
Any PAMDA Forms that are fully signed before the 1 December 2014 will remain valid. However, as of today, all forms and contracts must comply with the new Property Act.
PLEASE NOTE: Contracts that are signed by both the Buyer and the Seller, and delivered to the Seller on or before 30 November 2014 will have to comply with PAMDA legislation. However, any Contract that is not fully executed and delivered before that date, will need to be reissued in accordance with the new Property Act.
If you have any questions, or you are considering purchasing or selling a property in Queensland, call our friendly staff on (07) 5570 6766 to obtain an obligation free quote. Alternatively, you can email us at firstname.lastname@example.org or visit our website www.macgregor-oreilly.com.au to submit an enquiry. Our experienced Solicitors will ensure that your Contract is compliant with Queensland laws and that your rights are being protected.
Article by Kristina Jukic – 1 December 2014