PAMDA is dead, long live four new Acts … including the Property Occupations Act 2014, where the new rules have substantial impacts on most residential sale contracts including:

The vendor or their agents no longer have to provide a purchaser with a Form 30c, which contained specific information and had to be signed by the purchaser before they signed the actual contract.

Instead of the two page Form 30c, the vendor must now only ensure that a paragraph of information for the purchaser is included conspicuously in the contract, on the same page the purchaser signs.

The information must let the purchaser know that there is a statutory cooling off period, when they can terminate the contract and that they only have to pay a relatively small termination penalty if they terminate during the cooling off period.

The information paragraph must also recommend that the Buyer obtains an independent valuation and legal advice before signing the contract.

The new definition of residential property is: ‘Residential property is real property that is used or intended to be used for residential purposes but does not include real property that is used primarily for the purpose of industry, commerce or primary production’.

The ability of the purchaser to waive the statutory cooling off period has been removed. The existing five day cooling-off period and the exemption of sales by auction will continue. No cooling-off period will apply to contracts entered into 2 business days after an auction, provided the purchaser was a registered bidder at the auction. A Lawyer’s Certifications will no longer be required to waive a cooling-off period. Instead, a buyer may waive or shorten the cooling-off period by written notice to the vendor.

Agents’ commission were capped at a certain percentage under the law. Now these maximum commissions have been abolished.

Agents are no longer required to give Buyers of non-residential vacant land a notice stating that the land cannot be used for residential purposes.

The Act reduces the licence categories to three for real estate agents, auctioneers and resident letting agents. There will only be one category of registered employee. Property developers and their employees will no longer need to be licensed to sell property.

The Property Agents and Motor Dealers Act 2000 (PAMDA) was repealed 1 December 2014 and replaced by four different, industry-specific Acts (1) Property Occupations Act 2014, (2) Motor Dealers and Chattel Auctioneers Act 2014, (3) Debt Collectors (Field Agent and Collection Agents) Act 2014 and (4) Agents Financial Administration Act 2014.

These are but a few of the ramifications to property contract law in Queensland. It highlights the need for buyers to carefully examine all aspects when buying property and utilize independent property professionals such as legal, valuation, building & pest etc. – BUYER BEWARE

Disclaimer : This publication is intended only to provide a summary of the subject matter covered. It does not purport to be comprehensive or to render professional advice and neither purports nor is intended, to be advice on any particular matter. No reader should act on the basis of any matter contained in this publication without first obtaining specific professional advice. This article is copyright. For permission to reproduce this article please contact us