The Property Occupations Act 2014 (Qld)
(Act) will commence on 1 December 2014 replacing
the Property Agents and Motor Dealers Act 2000 (Qld)
(PAMDA). Amendments to the Land Sales Act 1984
(Qld) (LSA) and Body Corporate and Community Management
Act 1997 (Qld) (BCCMA) will also commence on
1 December 2014 to streamline amendments to key property law
legislation in Queensland. The Act reduces the red tape and
regulation imposed by PAMDA and has been welcomed by the property
RESIDENTIAL PROPERTY REDEFINED
The meaning of residential property has been simplified to
create more certainty for the property industry. The Act now
defines residential property as:
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
Contracting parties will now have greater certainty on whether
the Act will apply to a transaction.
REMOVAL OF WARNING STATEMENTS
The Act removes the requirement to attach a PAMDA Form 30c
Warning Statement and BCCMA Act 1997 (Qld) Form 14 Information
Sheet to a relevant contract.
The following statement must be included, immediately above and
on the same page where the buyer signs,
"The contract may be subject to a 5 business
day statutory cooling-off period. A termination penalty of 0.25% of
the purchase price applies if the buyer terminates the contract
during the statutory cooling-off period. It is recommended the
buyer obtain an independent property valuation and independent
legal advice about the contract and his or her cooling-off rights,
Non-compliance with these provisions will result in a penalty of
up to $22,000 and not a termination right, as is currently
prescribed under PAMDA.
The requirements for a seller to provide a disclosure statement
under BCCMA and the ability of the buyer to terminate for the
failure to provide a disclosure statement will remain.
The Act maintains the statutory five day cooling-off period for
No cooling-off period will apply to contracts entered into
within two business days after an auction, provided the buyer was a
registered bidder at the auction.
The PAMDA Form 32a Lawyer's Certifications will no longer be
required to waive a cooling-off period. Instead, a buyer will be
able to waive or shorten the cooling-off period by written notice
to the seller without first instructing a solicitor.
A termination notice under the cooling-off period will not need
to specify the section of the legislation under which the buyer is
terminating, nor be dated.
LAND SALES ACT
The LSA no longer applies to sales arising from a subdivision of
land into not more than five lots. The amendment removes the need
for LSA exemption and replaces it with an automatic exemption. Off
the plan sales will be entitled to request a deposit of up to 20%
of the purchase price without the relevant contract becoming an
instalment contract to assist property developers with financing
arrangements. The parties to a proposed off the plan community
titles scheme contract may agree to a five and a half year sunset
date increasing the current limit by two years.
If the parties do not agree the statutory sunset date will
remain at three and a half years. The sunset date for proposed land
subdivisions remains at 18 months.
WHERE TO FROM HERE?
PAMDA will continue to apply to a relevant residential contract,
up to and including 30 November 2014. From 1 December 2014 the
Property Occupations Act will apply to a relevant contract
and the new industry approved forms must be used. It is important
that Contracts entered into before 30 November 2014 must comply
with PAMDA and the current industry approved forms. Contracts that
have been signed by one party before 1 December 2014 but not the
other will need to be reissued in the new form of contract required
under the Act.
ClarkeKann are available to assist with any query you have
regarding the Act.
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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