Earlier this year Queensland's residential housing wealth broke through the $800 billion barrier – worth more than superannuation, listed stocks and commercial real estate combined. That's a remarkable performance when you consider real estate transactions in Queensland have long been hampered by obsolete legislation, designed more for bureaucrats than agents and consumers.
From December 1, however, there are renewed grounds for confidence in Queensland real estate, as the state's
new industry-specific laws come into force. The Real Estate Institute of Queensland has long lobbied governments on both sides of the political divide for these laws and we applaud the state's lawmakers for making them a reality.
The new
Property Occupations Act is a watershed in the history of Queensland real estate. It will deliver buyers and sellers a welcome reprieve from unnecessary red tape. It will eliminate costly paperwork that burdens real estate agencies, while doing little to protect consumers.
And just as importantly, it will create a more competitive marketplace. From today, maximum allowable commission rates for residential and rural property sales prescribed by legislation will be abolished. Instead, agents and their clients will have ultimate contractual freedom to determine commissions, based on the level of services being provided.
You don't really have to delve too deeply into the previous laws to realise just how unworkable they had become. For example, under the old laws the regulations provided seven – yes, seven – separate agent appointment forms.
The new regulations have replaced this byzantine structure with one simplified agent appointment form. And they've sensibly gone one step further by abolishing the previous requirement that an agent specify "how" services are to be performed.
Also gone is the much-maligned stand-alone Form 30
warning statement, which previously had to be attached to residential contracts of sale. Ask just about any conveyancing solicitor in Queensland and they'd probably be able tell you their own Form 30 horror story – most likely about a contract falling over because a Form 30 wasn't properly stapled to the rest of the paperwork!
This particular reform is long overdue and it's one of the most critical, in the REIQ's opinion. The requirements associated with the delivery of the Form 30 have allowed many buyers to terminate contracts on the basis of a minor or technical omission. This change will greatly enhance contract certainty and alleviate administrative burden.
One of the most talked about changes in the new laws is the prohibition on price guides for residential auctions. Although not the leading method of sale in Queensland, auctions are nonetheless increasingly popular throughout the state.
It's important to remember the key objective of an auction sale: to allow the market to determine what it is prepared to pay. And it's equally important to recognise that these new provisions won't act as a blanket ban - real estate agents handling an auction property will still be able to provide a buyer with certain information. Agents involved in an auction campaign can provide a prospective buyer with a comparative market analysis (CMA) or a written explanation, showing how they decided the market value of the property. Agents can pass this information on to prospective buyers, provided the seller has provided written consent.
With the rise of online portals in real estate marketing the act goes a step further, allowing agents to load auction properties by price criteria on websites, enabling consumers to search by price ranges.
Research shows that the vast majority of buyers commence their property search on the internet, so this will allow consumers to get some sense of the price ballpark the property is in.
These important new laws wouldn't have come about without the input of the REIQ's thousands of members. We consulted widely with our members once the draft laws were released and their feedback has helped to shape the new act.
In 2015 we'll continue working on the issues of most importance to our members: compulsory professional development for all registration and licence holders; and a much needed overhaul of the Residential Tenancies and Rooming Accommodation Act.
Government wants to consult with us and we have a good working relationship to pursue these goals.
Article written by Antonia Mercorella and originally published on domain.com.au
