Changes to the QLD Property Laws
Goodbye PAMDA
The Property Agents and Motor Dealers Act 2000 (“PAMDA”) will be replaced with:
- Property Occupations Act 2014 (“POA”)
- Motor Dealers and Chattel Auctioneers Act 2014
- Debt Collectors (field agents and Collection Agents) Act 2014
- Agents Financial Administration Act 2014
When do the changes start?
The new changes commence on 1 December 2014
What’s changing for real estate agents?
The new laws that will start on 1 December 2014 include:
- Property Occupations Act 2014
- Property Occupations Regulation 2014
- Agents Financial Administration Act 2014
- Significant changes to the Land Sales Act 1984
The PAMDA will continue to apply until midnight on 30 November 2014.
NO TRANSITION period:
- Contracts not “entered in to” before midnight on 30 November 2014 must comply with the new POA Act (see Section 267 of the POA).
- “Entered in to” means a formed contract – i.e. signed by both the buyer and the seller (and also communication that it has been formed).
- The Queensland Law Society requested that there be a grace period for contracts that had been sent to a buyer before 1 December 2014 – that was rejected by the government.
- This will make things difficult for agents and lawyers dealing with “off the plan” contracts as they are big documents including disclosure and it often takes time for buyers to get advice on the contract before they feel comfortable to sign. Delays of up to a month before documents are returned are not unusual.
New REIQ contract required:
- A new form of REIQ contract will be required to comply with the changed requirements for warnings to buyers.
- The new contract will incorporate the new, simplified warning to buyers immediately above the place the buyers sign the contract.
- Failure to get the new warning correct will still be fatal to contracts.
- The new REIQ contract is still not yet ready to go – there is still some disagreement between the REIQ and the QLS stakeholders.
- The current “best guess” is that the new REIQ contract is expected to be finalised in the next week or so – we will let you know when it becomes available.
New forms for agents:
- The new forms for sales agents under POA are now available on to the Office of Fair Trading website but cannot be used until 1 December 2014, when the POA commences.
- The biggest change is to the appointment of an agent.
- There will be a new Form 6 appointment of a sales agent which does away with 7 previous forms dealing with appointments.
- Form 27C’s and Form 28 (disclosure of beneficial interest of agent) will be amalgamated into a new form 7 disclosure of agents interest to form.
Goodbye PAMDA Form 30c and BCCM Form 14 (for units):
- These forms will not be required for contracts entered in to after 1 December 2014 (but must still be used until then).
- From 1 December 2014, there will be no need to direct a buyer’s attention to the warning statements and information sheets (as the warning will be directly above where the buyer signs the contract).
- Developers selling off the property may have some awkward new obligations to disclose marketing fees paid by builders of houses on the land – more on that in a later update.
- Stay tuned for updates!
“Off the Plan” sales affected
- If you are selling property off the plan you will need new disclosure forms and contracts for any contract that is signed AFTER 1 December 2014
Contact us if you are a developer or agent involved in developer sales for a more detailed update on the impact on current “off the plan” developments, or you are a sales agent and want a more detailed update.
Contact Tony Randall (Accredited Specialist – Property Law) from our Commercial Property Law Team.
Prepared by Tony Randall
This publication has been carefully prepared, but it has been written in general terms and should be viewed as broad guidance only. It does not purport to be comprehensive or to render advice. No one should rely on the information contained in this publication without first obtaining professional advice relevant to their own specific situation.
