Australian Property News

Industry welcomes contract law changes in Queensland

Posted on Wednesday, February 13 2013 at 12:19 PM

There was a collective sigh of relief this week when the Queensland Government announced a total overhaul of the legislative framework relating to real estate

In a nutshell, the Property Agents and Motor Dealers Act 2000 (PAMDA) will be repealed and replaced with four new industry-specific pieces of legislation.

The draft Property Occupations Bill 2013 is one of the four and aims to simplify the contracting process for the sale of residential dwellings.

It will also regulate the sale of community title property.

The changes would mean agents can ditch the Form 30C warning statement, the rules around which are currently very strict, according to Allens law firm senior associate Annabelle Aland.

Under the existing legislation, if the form isn’t 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 bill, it’s proposed that the seller 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… 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,” Aland says.

Stakeholders have until March 8 to provide feedback on the draft bills.