The Queensland Property Occupations Bill 2013 was introduced
into State Parliament on 20 November 2013. Upon commencement of the
Bill it will replace the Property Agents and Motor Dealers Act
The objectives of the Bill are to:
provide for the repeal and split of the PAMDA. The Bill is one
of four Bills that will split the PAMDA. The Bill regulates
property related occupations and aims to achieve an appropriate
balance between the need to regulate for the protection of
consumers and the need to promote freedom of enterprise in the
simplify and reduce the level of red tape and regulation the
PAMDA currently imposes on the property industry; and
improve the operation of the legislation and clarify particular
Some notable changes include:
Streamlining home sale contracts and
statements: Currently the PAMDA prescribes a complex
process which must be followed when presenting and delivering
residential real estate contracts. These processes require several
approved forms to be presented and delivered to a real estate buyer
in a specified way and order. In addition, failure to comply with
the existing provisions of the PAMDA constitutes grounds for
terminating the contract.
The Bill repeals the existing warning statement provisions and
replaces them with a simple requirement for a prescribed statement
to be included in particular home sale contracts.
Failure to comply with this provision results in a penalty of up
to $22,000 rather than the right to terminate.
De-licensing of property developers:
The Bill removes the requirement for property developers and their
employees to be licensed. It is considered the significant red tape
reduction measure may generate employment growth, reduce barriers
to entry in the property developer market, encourage market
entrants and in turn, increase competition.
De-regulation of real estate commission
cap: The PAMDA prescribes a rate of maximum
commission, initially intended to protect consumers. However it has
been found that due to the lack of price competition, the maximum
commission rates set by the Government have effectively become the
rates that agents charge. The Bill repeals this provision.
Buyer's notification of termination during
cooling-off: The Bill removes the requirement for a
buyer to state in a termination notice the section of the
legislation they are using to exercise their statutory cooling-off
rights. The Bill also removes the requirement for the termination
notice to be dated.
Statutory cooling-off period applies to an option
contract but not the subsequent contract: The Bill
clarifies that the statutory cooling-off period only applies to an
option and not the contract formed when the option is exercised.
This applies however only when the buyer is the same party to both
the option contract and subsequent contract.
Allow Resident Letting Agents to manage more than
one Building: The PAMDA currently imposes a
limitation on the number of building complexes a resident letting
agent can manage. These provisions have been considered onerous and
are repealed by the Bill. The Body Corporate and Community
Management Act 1997 will however continue to regulate resident
letting and protect consumers.
No longer require Resident Letting Agents to reside
on-site: The Bill removes the requirement for a
resident letting agent for an apartment complex to live
Definition of Residential Property:
The Bill replaces the definition of 'residential property'
contained in the PAMDA with a simple definition to improve the
operation of the legislation. Clause 21 of the Bill provides
"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." It is envisaged that
coupled with the removal of the termination right for failure to
comply with former warning statement provisions, it will reduce the
level of litigation that has occurred in relation to the
The proposed changes will be welcomed by the development
industry which has been unnecessarily burdened by residential
buyers seeking to terminate contracts based on minor technical
grounds under the PAMDA.
Submissions on the Bill can be made to the Government by 5:00pm
on Friday, 8 March 2014.
We will keep you up to date with any developments.
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guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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