This article is from the Australian Property Journal archive
QUEENSLAND's new real estate laws, which prohibit the use of a price guide for residential auctions, came into force today, December 01.
Real Estate Institute of Queensland (REIQ) CEO Antonia Mercorella said the new Property Occupations Act would cut red tape, simplify transactions and increase transparency.
Key changes to the Act include:
– The replacement of seven separate agent appointment forms with a single standardised form;
– Removing the requirement for agents to disclose to a buyer the commission the agent is receiving from the seller;
– Extending the statutory limit on lengths of appointments for a sole or exclusive agency from 60 days to 90 days to better reflect market realities;
– Abolition of a separate Form 30 Warning Statement which will be replaced by a short prescribed statement included in a relevant contract; and
– Deregulating the maximum commission rates for real estate sales and property management.
“Removing the requirement for a separate Warning Statement is long overdue and it’s one of the most important of the new reforms.
“It’s a requirement that’s been used by buyers to terminate contracts on the basis of a minor or technical omission, resulting in uncertainty and unnecessary administrative burden,” she added.
Mercorella said the new laws also prohibited the use of a price guide for residential auctions, however agents handling an auction property could still provide a buyer with certain information.
The new laws seek to combat underquoting. Recently the Real Estate Institute of South Australia (REISA) launched an Underquoting Advisory Panel, after the state government changed the laws in January, where an agent must give evidence of their genuine estimate.
In Victoria, during the last leg of the election campaign, the Liberal Government proposed new laws to tackle underquoting if they were re-elected. However the Napthine Government lost the election on the weekend and it is unlikely that the newly elected Andrews Government will make any changes to law.
The previous Victorian shadow attorney-general Martin Pakula labelled the Liberal Government’s proposal as a stunt because he said the laws already exist.
Meanwhile in QLD, Mercorella said real estate agents involved in an auction campaign can provide a prospective buyer with a comparative market analysis or a written explanation showing how the real estate agent decided the market value of the property.
“Agents can pass this information on to prospective buyers provided the seller has provided written consent,” Mercorella said.
Australian Property Journal
