This information has been provided by
Australian law firm, Australian Conveyancing Services and is applicable in Queensland
only.
Queensland and in particular South East Queensland, continue to be a
growth ‘hot spot’ for property investment. The Property Agents and Motor Dealer’s Act 2001 (Qld) seeks to regulate more closely property transactions in the sunshine
state.
This article talks about how the law affects sellers and agents.
For information on how the Act affects buyers, click
here.
Selling Property
The Act regulates the
seller’s relationship with the real-estate agent, requiring the
agreement to be in writing in a special form and to include certain
disclosures and information.
The Act recognizes 3 different
types of listing:
Open listing
– under this arrangement you sign a contract with an
agent but you can also list with other agents or even
sell the property yourself. Commission is then only
payable to the person who actually brings about the sale
(if it is you, then you don’t pay commission to anyone).
Sole Agency
– a sole agency is an exclusive one (that is you
cannot employ other Agents during the sole agency term).
However you can still sell the property privately,
without paying commission
Exclusive Agency
– this type of contract between seller and agent is the
most restrictive as it entitles the Agent to commission
whether or not they sell it, or you or another agent
sells it during the exclusive agency term.
For more information on the pros and cons of different types of agency agreements, see our Article
Sales
Methods - Pros & Cons.
Irrespective of which way you want to list, the Agent must put the agreement in writing using the prescribed Form (Form 22a). For auction listings, the Agent can use the Form 22a or the Form 24a. This form sets out the terms of the agreement between Seller and Agent, including which listing
type is selected, a warning to receive independent legal advice, the term of the agreement, and the fees involved.
For more information on Agent’s commission, see our article The Agent -
Commission, Expenses and Agreements.
Although you do not have to
get independent legal advice, it is a good idea to get a
Solicitor to look over the Agency agreement, given that the
commission is large.
For sole/exclusive agencies, the term of the agency cannot be longer than 60 days (this term can be extended, but only during the final 14 days of the term). This is a significant change to the previous law, which did not restrict the agency term, and exclusive agencies were traditionally 90 days
long.
Failure by an Agent to comply with the above regulations means that the Agent
may not be entitled to claim his/her commission.
