Australia: Transitioning from PAMDA to Property Occupations Act in Queensland

The Attorney General has announced that the Property Occupations Act 2014 (POA) and amendments to the Land Sales Act 1984 (LSA) will commence on 1 December 2014.

These legislation changes will affect all sale and purchase of property in Queensland including off the plan, residential, commercial and industrial property.

POA – The Highlights

• The Property Agents and Motor Dealers Act 2000 (Qld) (PAMDA) Warning Statement and BCCM Information Sheet are no longer required.
• The requirement to draw attention to the Warning Statement when issuing a contract has been removed.
• POA requires a prescribed statement alerting the buyer to its cooling off rights be given above where the purchaser signs the contract. The consequences of failing to give the statement are financial and no longer entitle a buyer to terminate the contract.
• The cooling off period of five business days remains however, waiving a cooling off period can now be effected by giving notice and a Form 32a lawyer's certificate is no longer required.
• The cooling off period for option contracts applies at the signing of the option and is only required at exercise of the option if the buyer has nominated a third party.
• A lawyer's certificate of independence Form 32a is no longer required, however the common law position on independence still applies.
• Real estate agents' commission rates have been deregulated and will now be subject to market forces.
• Agents no longer need to disclose commissions to buyers.
• Residential letting agents do not need to be resident in the building and may be appointed for more than one complex.

LSA Amendments – The Highlights

• There are new requirements for disclosure plans which must be provided in conjunction with the sale of a strata or non strata lot. The disclosure plan must be prepared by a surveyor in accordance with the criteria set out in the LSA and Body Corporate and Community Management Act 1997.
• Non strata lots are now able to be sold off the plan, provided a disclosure statement in a format similar to that required for off the plan strata lots is provided.
• There is no longer a prohibition on the sale of proposed non strata allotments prior to obtaining a Development Approval.
• The maximum deposit for lots being sold off the plan has increased to 20% of the purchase price, which can be forfeited without being construed as a penalty.
• The sunset date to obtain title for strata lots has been extended from three and half to five and half years. Title to non strata lots must still be obtained within 18 months of the contract date.
• There is an automatic exemption from the obligation to provide a disclosure statement where the sale is of an unregistered lot on a proposal plan which contains no more than five lots.
• If further disclosure is required, the timeframe to terminate for material prejudice is 21 days from when further disclosure is given.

These changes will have a significant impact on property transactions in Queensland.

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.