More PAMDA Changes on the Way - Queensland

In Queensland, real estate agents, letting agents, property developers, motor dealers and auctioneers are regulated by the Property Agents and Motor Dealers Act 2000 (Act). The Act regulates the licensing requirements for these particular occupations, as well as setting out the relevant codes of conduct for each occupation.

Property Agents and Motor Dealers Act 2000

In Queensland, real estate agents, letting agents, property developers, motor dealers and auctioneers are regulated by the Property Agents and Motor Dealers Act 2000 (Act). The Act regulates the licensing requirements for these particular occupations, as well as setting out the relevant codes of conduct for each occupation.

The Queensland Government has released proposed bills which, if passed, will separate the provisions of the Act into separate acts. The intention is for each occupation to be regulated by a separate act. The following bills have been proposed:

1. Property Agents Bill 2010;
2. Motor Dealers and Chattel Auctioneers Bill 2010;
3. Commercial Agents Bill 2010; and
4. Agents Financial Administration Bill 2010.

The current licensing requirements will remain relatively unchanged and the existing obligations under the Act will be reproduced in the new acts. There will be some new licence categories, and some licence categories will be deregulated.

Proposed New Licence Categories

If the Property Agents Bill 2010 is passed, the recognised categories of licences will be:

1. Property Agent (real estate agent and auctioneer);
2. Property Agent (resident letting agent); and
3. Property Agent Salesperson (registered employees).

Under the Property Agents Bill, a real estate agent holding a property agent licence will be able to auction real property and a separate auctioneer’s licence will not be required.

Limited licences may also be granted in certain situations which will be prescribed by regulation.

Proposed Contracts

The recent changes to Chapter 11 of the Act, which regulates disclosure requirements and the issuing and execution of contracts for the sale of residential property, have been adopted in the proposed Property Agents Bill 2010. These provisions will continue to apply under the proposed new laws.

Property Developers

Property developers will no longer be required to obtain or hold a licence to be able to sell property. Companies will no longer be required to have a licensed director, provided the person in charge of the corporation’s business is licensed.

While a property developer is not required to have a licence or a registered certificate, developers must comply with the codes of conduct which will be prescribed by regulation. For example, developers will still be required to disclose to buyers details of any benefits that they may receive under a contract, or if they have a relationship with anyone that they have referred the buyer to for professional services.

Trust Accounts

The trust account and claim fund provisions currently contained in the Act will be replicated in the proposed Agents Financial Administration Bill 2010. If this Bill is passed, it will apply to all occupations which are regulated by the current Act.

The proposed Agents Financial Administration Bill does not replicate the enforcement provisions which are currently contained in Chapter 15 of the Act. Those provisions will form part of the proposed Inspectors Powers Act which is to be finalised in mid 2011.

Disclaimer

The information in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this article is accurate at the date it is received or that it will continue to be accurate in the future.