The Property Agents and Motor Dealers Act (PADMA) was designed to make Queensland conveyancing easier and changes were made to improve it over the years but at the end of 2014 the PADMA was discontinued.
The PADMA aimed to protect both the property buyer and the real estate agent during the sales process, make the conveyancing process less confusing and reduce the amount of red tape for business owners, but it was abolished for the same reasons.
The PADMA offered a few benefits and was introduced to protect the consumer so that:
- Property sellers were better protected against buyers pulling out because of technical issues or inconsistencies with paperwork.
- The process of exchanging counter offers was streamlined.
- Businesses no longer had to announce their decision to open a trust account, although the person the money was being held for was still protected.
Even though it simplified things at the time the PAMDA was often judged hard to understand, burdensome and too technical.
What Queensland property laws are in place now?
The PADMA was replaced with four Acts which are are now in force and can be viewed on the Queensland government site:
- Property Occupations Act 2014
- Motor Dealers and Chattel Auctioneers Act 2014
- Debt Collectors (Field Agent and Collection Agents) Act 2014
- Agents Financial Administration Act 2014
Once again the aim is to reduce red tape, particularly for property industry professionals and real estate agents.
In addition, some consumer protections have been removed or simplified to reduce uncertainty for all parties involved in a conveyancing transaction.
Law changes that are significant for real estate professionals
- Property developers no longer need a licence.
- Auctioneers need an auctioneer licence under the Property Occupations Act 2014 and can not conduct an auction without a full licence.
- Auctioneers do not need to display their licence at an auction. However, they must display or announce their name depending on the conditions at the site.
- Auctioneers no longer need to work as a trainee before applying for a licence.
- Real estate agents are able to say that a reserve price exists for an auction of residential property but still must not disclose the reserve price itself.
- Real estate agents must not release a price guide for an auction of residential Queensland property.
Law changes that are significant for buyers and sellers
- Real estate agents no longer need to state how they will perform their services, so the onus is on sellers to make sure they know what they're getting.
- The maximum term of appointment for sole or exclusive agency increased from 60 days to 90 days. However, appointments that are for 90 days may be terminated after 60 days.
- Either party may end an open listing at any time by giving written notice.
- The limit on sale commissions has been deregulated so real estate agents can now negotiate any commission with their clients.
- Agents no longer need to disclose to the buyer how much commission they receive from the seller.
- The PAMDA Warning Statement has been replaced by a warning statement at the end of the sales contract above the buyer’s signature which reads:
"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, before signing."
- Buyers no longer need a lawyer’s certificate to waive or reduce their cooling-off period.
How will Queensland property law changes affect you?
If you're buying or selling property there's no need to be too concerned about these changes but, as always, we strongly recommend you seek legal advice during any conveyancing process.
I've spent years learning about conveyancing in Queensland and getting up to speed with elements of conveyancing that can be confusing to buyers, sellers and even real estate agents, and my job is to make conveyancing easy for you.
Having a professional conveyancing lawyer to help you navigate buying or selling property gives you instant peace of mind and can be priceless since it guarantees you'll avoid costly mistakes.
A dedicated conveyancing solicitor or lawyer will take care of every aspect of your conveyancing job, make sure government deadlines are met and check that all the paperwork is in order.
While general lawyers are usually happy to take on conveyancing jobs, a dedicated conveyancing lawyer has the right training, experience and insights into Queensland property contract law to back you up throughout the buying or selling process.
With a conveyancing lawyer on your side, whatever law changes are made in Queensland, your property transaction outcome will turn out just fine.
Looking for a Professional Conveyancing Lawyer or Solicitor?
Contact us now for informed conveyancing advice. To book your free consultation outside business hours please use the consultation booking form below or call us now on 1300 224 278.