Changes to Residential Cooling Off Period
The Queensland Law Society has praised the passing of the Property Occupations Act 2014 (POA) as a shift away from a one size fits all approach of the last decade and a big step forward for the property industry.
The POA was passed on the 6 May 2014 and will replace certain aspects of the Property Agents and Motor Dealers Act 2000 (PAMDA).
Although a commencement date has not yet been announced, the new legislation is expected to simplify the contract formation process and reduce incidents of contract termination and disputes for non-compliance.
Attorney-General Jarrod Bleijie has touted the new amendments as removing the unnecessary burden of red tape and has assured Queenslanders that the simpler we can make the process the greater Queenslanders are protected.
Some of the changes in POA include:
- Removing the requirement for agents to disclose to a buyer the commission the agent is receiving from the seller
- PAMDA Form 30c Warning Statement and Body Corporate Information Sheet will no longer need to be attached to the contracts
- A Buyer’s attention will no longer need to be directed to the PAMDA Warning Statement
- The cooling off period may be shortened or waived by providing written notice to the seller, however a Form 32a Lawyers Certificate will no longer be necessary
- The maximum commission rates for agents have been deregulated to allow greater contractual freedom
Queensland Law Society president Ian Brown has advised that although the new legislation is a welcomed change for Queensland, he warns that potential homeowners should still be cautious when purchasing property, especially if they are unfamiliar with Queensland’s property laws.
All potential buyers are urged to always contact their solicitor before signing any commitment to purchase.