8 May 2014
Practice Group(s):
Real Estate
Investment,
Development and
Finance
A New Era for Property Transactions in
Queensland – Property Occupations Act 2014 to
Replace PAMDA
By Kylie Maxwell and Mark Foy
New Legislation Replacing PAMDA
The Property Occupations Act 2014 (POA) was passed on 6 May 2014. The date of
commencement has not yet been announced or proclaimed.
Those familiar with property transactions in Queensland will welcome the POA and the
repeal of the Property Agents and Motor Dealers Act 2000 (PAMDA). This is because the
new legislation should:
 simplify the contract formation process
 reduce incidences of contract termination and disputes for non-compliance.
How will Property Transactions be Affected?

The definition of 'Residential Property' has been simplified. Contracting parties will
have greater certainty on whether the POA will apply to a transaction.

The PAMDA Form 30c Warning Statement and Body Corporate and Community
Management Act 1997 Information Sheet will no longer need to be attached to
contracts. Instead, a prescribed statement must be written in a contract immediately
above and on the same page where the buyer signs.

If the prescribed statement is not included, the buyer will not be able to terminate the
contract. The seller or the seller's agent who gave the contract to the buyer instead
commits an offence and a financial penalty of up to AUD22,000 may be imposed.

A buyer's attention will no longer need to be directed to the PAMDA Warning
Statement.

The buyer's cooling-off period for a relevant contract of five business days remains.

The cooling-off period may be shortened or waived by giving written notice to the
seller. The Form 32a Lawyers Certificate required under PAMDA will no longer be
necessary.

The cooling-off period will only apply to an option agreement and not the contract that
may be formed subsequently upon exercise of the option, except where a third party,
such as a nominee, exercises the option.

Real estate agents' commission rates have been deregulated.

The requirement for including the prescribed wording in the contract and the coolingoff period will not apply to a property sold at auction or entered into with a registered
bidder by 5 pm on the second business day after being passed in at auction.
A New Era for Property Transactions in Queensland – Property
Occupations Act 2014 to Replace PAMDA
What do I Need to do Now?
This Legal Insight is a snapshot of some of the changes that will impact property
transactions. There are numerous other changes affecting licensing and the appointment
of real estate agents, disclosure of estimated sale prices and option deeds.
To prepare for these changes, it is now time for:

developers to review and update precedent off-the-plan contracts

sellers (including mortgagees/liquidators/receivers & managers) to review
contract documents and sale procedures. Where contracts have been issued to
buyers or agents in anticipation of sale, these contracts and processes may need
to be changed, depending on the commencement date of the POA

real estate agents to review internal processes and precedents, consider if
contracts which are not yet signed will need to be changed in preparation for the
commencement of the POA and review appointment agreements.
PAMDA will continue to apply to a relevant contract entered into before the
commencement of the POA which has not yet settled.
It is imperative that all those involved in Queensland real property transactions be vigilant
in monitoring and preparing for the commencement of the POA.
If we can assist you with this transition, please contact a member of the Brisbane Real
Estate Group.
Authors:
Kylie Maxwell
kylie.maxwell@klgates.com
+61.7.3233.1240
Mark Foy
mark.foy@klgates.com
+61.7.3233.1221
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