The Property Agents and Motor Dealers and Other Legislation Amendment Bill 2010 (the PAMD Bill) was introduced to Queensland Parliament on 24 March 2010 and passed on 17 August 2010. The bill was to come into effect from the 1 October 2010. Its purpose was primarily to make amendments (particularly within Chapter 11) to the Property Agents and Motor Dealers Act 2000 (PAMD Act) and the Body Corporate and Community Management Act 1997 (BCCM Act).
Amendments to the PAMD Act are intended to clarify and simplify property transactions for real estate agents, sellers and buyers, particularly regarding the presentation and delivery of residential property contracts. Previously minor breaches in presentation or delivery of a contract, for example faxing pages out of correct order, allowed buyers to void the contract.
Changes to Chapter 11 of the PAMD Act mean that the existing regulatory requirements for presenting and delivering contracts no longer apply. Where previously the warning statement had to be the first sheet of the contract, this is no longer be the case. Contracts are henceforth considered to be compliant if the warning statement (and the BCCM Information sheet for unit sales) is attached to the contract regardless of page order. Furthermore, if a contract is transmitted electronically the Warning Statement and BCCM Information sheet are considered attached if sent at the same time. When sent by facsimile the documents must be sent as near as possible to the same time, allowing for the normal operating delays of fax machines.
The PAMD Act amendments also remove the requirement for further directions to be provided as well as the need to re-sign the Warning Statement when negotiated changes are made to a contract where the residential property and parties remain unchanged.
A 90 day time limit has been introduced for a buyer to exercise a termination right. The cooling off period was retained at a maximum of 5 business days. In alignment with other amendments this period is now considered to commence from the time a buyer receives a copy of the contract from the real estate agent or seller.
One further important change is that the seller is now only required to direct the buyer to the warning statement once at the time the contract is submitted.
The changes discussed here are sensible with generally positive outcomes. It is important for real estate agents, buyers agents, home owners and property investors to stay abreast of legislative changes, particularly given that laws are likely to differ slightly from state to state. Please seek professional advice regarding the changes arising from the passage of the Property Agents and Motor Dealers and Other Legislation Amendment Bill 2010. The commentary I have made is my opinion only and cannot be relied opinion as advice.
For more information download:
The full Amendment Bill at Property Agents and Motor Dealers and Other Legislation Amendment Bill 2010 (introduced on 24 March 2010 to Queensland Parliament)
Associated Explanatory Notes to the proposed legislation at Property Agents and Motor Dealers and Other Legislation Amendment Bill 2010 Explanatory Notes