Real Estate Industry proposal to contract law changes in Queensland Australia

Real Estate Industry proposal to contract law changes in Queensland Australia  

The Queensland Government announced a total overhaul of the legislative framework relating to real estate Property Agents and Motor Dealers Act 2000 (PAMDA) and will be repealed and replaced with four new industry-specific pieces of legislation.  

The draft Property Occupations Bill 2013 is one of four and aims to simplify the contract process for the sale of residential properties and it will also regulate the sale of community title properties.  

The changes would mean that agents would no longer need to use the Form 30C warning statement, the rules around which are currently very strict.  Under the existing legislation, if the form "is not" viewed and signed first and attached to the front of the contract, the buyer has the right to pull out of the deal.  

In the new proposed bill the seller would instead simply insert wording above where the buyer is to sign, suggesting they obtain independent legal advice and making them aware of any relevant cooling-off period.  

Failure to do this wouldn’t allow the buyer to terminate the contract on those grounds, Aland says. Instead, the seller could be subject to penalties.  These changes will be welcomed by the real estate industry, particularly in light of the difficulties faced in enforcing a contract against a buyer where there has been a minor, technical breach of the requirements of PADMA.