The Property Occupations Act 2014 (POA) was passed on 6
May 2014. The date of commencement has not yet been announced or
Those familiar with property transactions in Queensland will
welcome the POA and the repeal of the Property Agents and Motor
Dealers Act 2000 (PAMDA). This is because the new legislation
simplify the contract formation process
reduce incidences of contract termination and disputes for
How will Property Transactions be Affected?
The definition of 'Residential Property' has been
simplified. Contracting parties will have greater certainty on
whether the POA will apply to a transaction.
The PAMDA Form 30c Warning Statement and Body Corporate and
Community Management Act 1997 Information Sheet will no longer
need to be attached to contracts. Instead, a prescribed statement
must be written in a contract immediately above and on the same
page where the buyer signs.
If the prescribed statement is not included, the buyer will not
be able to terminate the contract. The seller or the seller's
agent who gave the contract to the buyer instead commits an offence
and a financial penalty of up to AUD22,000 may be imposed.
A buyer's attention will no longer need to be directed to
the PAMDA Warning Statement.
The buyer's cooling-off period for a relevant contract of
five business days remains.
The cooling-off period may be shortened or waived by giving
written notice to the seller. The Form 32a Lawyers Certificate
required under PAMDA will no longer be necessary.
The cooling-off period will only apply to an option agreement
and not the contract that may be formed subsequently upon exercise
of the option, except where a third party, such as a nominee,
exercises the option.
Real estate agents' commission rates have been
The requirement for including the prescribed wording in the
contract and the cooling-off period will not apply to a property
sold at auction or entered into with a registered bidder by 5 pm on
the second business day after being passed in at auction.
What do I Need to do Now?
This Legal Insight is a snapshot of some of the changes that
will impact property transactions. There are numerous other changes
affecting licensing and the appointment of real estate agents,
disclosure of estimated sale prices and option deeds.
To prepare for these changes, it is now time for:
developers to review and update precedent off-the-plan
sellers (including mortgagees/liquidators/receivers &
managers) to review contract documents and sale procedures. Where
contracts have been issued to buyers or agents in anticipation of
sale, these contracts and processes may need to be changed,
depending on the commencement date of the POA
real estate agents to review internal processes and precedents,
consider if contracts which are not yet signed will need to be
changed in preparation for the commencement of the POA and review
PAMDA will continue to apply to a relevant contract entered into
before the commencement of the POA which has not yet settled.
It is imperative that all those involved in Queensland real
property transactions be vigilant in monitoring and preparing for
the commencement of the POA.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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