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New Property Occupations Form 6 For Queensland Real Estate Agents

From May 1 2024, Queensland real estate agents will be required to use the new Property Occupations Form 6 and Form 6A for any residential and commercial property occupation appointments.

The existing single form used for both residential and commercial appointments has been split into two forms; the new Form 6 (for residential) and Form 6A (for commercial). Its structure and inclusions have also been significantly overhauled. For this article, we're focusing on the residential Form 6, and not the commercial Form 6A.

Let's dissect how these forms have changed, and how this impacts transactions that are currently in place.

What Form Do I Need To Use?

For forms signed by both the Seller (Client) and Real Estate Agent before May 1 2024, there will be no change to the rules or requirements set out in the existing Form 6, and no action is required. These agreements are valid and enforceable until the termination of the appointment (generally once the property has settled and the agent's commission finalised).

For forms NOT signed by both parties, the parties will either need to complete the existing Form 6 prior to May 1 2024, or will need to wait until May 1 2024 and sign the new Form 6.

Any Form 6 that is currently in place but will expire after May 1 2024, any reappointment must be prepared using the new Form 6. As noted by REIQ, should the parties use the incorrect form, they risk the appointment being invalid, which may cost the agent their commission in additional to particular rights and obligations for the parties.

As noted above, it is important that residential and commercial appointments are using the correct Form 6 for residential properties or Form 6A for commercial properties.

If you have any questions about which form is required, we encourage sellers speak with their preferred real estate agent. Of course, we always recommend clients speak with a solicitor prior to executing any documents to ensure they have been drafted correctly.

Whilst there have been a range of changes to the structure of the new Form 6, let's look at important changes page by page.

Page 1

Page 1 includes parts 1 and 2, which relate to the Seller's (Client) details and licensee's (generally the Real Estate Agent) details. There have been no major updates to this page outside of some general terminology (the insertion of a 'Buyer's Agent', and updated form title).

For real estate agents, this is an important reminder to undertake appropriate identity verification for all parties. The seller's details must match exactly with Title, and that the client (if not the legal owner) is authorised to deal with the property. Remember to obtain relevant Powers of Attorneys, Trust deeds or ASIC company searches in instances where there is an attorney, trust or company involved.

Ensuring these details are correct now can avoid issues or disputes later down the road.

Page 2

Page 2 includes parts 3 and 4, and relate to the property details and appointment details. Again, there have been no major updates to these parts, and it is crucial that the correct property information has been inserted.

For sellers, this is where you can details specific pricing information relating to your sale, and specific instructions or conditions for your real estate agent.

Page 3

Page 3 includes parts 5 and 6, and relate to the Termination and Property Sales. Once again, there have been no major changes. These sections details the responsibilities of the parties, and the rights the parties have should they wish to terminate the agreements.

The term of the appointment can be negotiated between the parties, up to a maximum of 90 days. The parties can extend an exclusive or sole agency beyond 90 days, but can only be done in the last 14 days of the agreements. An open listing agreement does not require an end date, and may be terminated at any time in writing by either the agent or the client.

Page 4

Page 4 includes part 7, which details any commission payable to the real estate agent. Whilst commissions have always been inclusive of GST (in accordance withe Property Occupations Act 2014), the wording has been changed and bolded in the new Form 6 to include 'including GST' for clarity.

It is important the both the client and real estate agent understand the commission amount and when it is payable.

Page 5

Page 5 includes part 8, which relates to the authorisation to incur fees, charges and expenses. It details what costs, if any, the clients authorises the agent to incur when performing their services. This might include things such as marketing costs, repairs or other third-party costs.

For real estate agents, remember that any additional schedules or annexures (such as those relating to marketing costs or repairs) must be listed here. REIQ has also updated their standard annexures, and will provided from May 1 2024. See below regarding an important change relating to Seller's Disclosure Annexure.

Section 2 has been expanded to include details for any property manager dealing with the property, and includes costs for emergency repairs (up to four weeks rent). This places it in accordance with s 219A of the Residential Tenancies and Rooming Accommodation Act 2008 (QLD).

Page 6

Page 6 includes part 9, which includes signatures and reappointment terms. There have been no changes here, as the seller (client) and real estate agent must always sign the document.

New Provisions Regarding Seller's Disclosure

In October 2023, the Queensland Government passed a property law bill which will put in place a range of sweeping changes to how property transactions are undertaken in Queensland. Whilst there has been no formal proclamation of when this will come into place, one of the most significant reforms introduces a mandatory seller disclosure regime, which will require significant disclosure from the seller as to the nature of the property. Don't worry, we'll be diving into all the changes in the new Land Titles Act in a later article.

Until such time this seller disclosure regime comes into place, REIQ has included a new provision that indemnifies the real estate agent against a breach of warranty when relying on property information provided by the seller (client). It provided greater protection for real estate agents, and will assist them in drafting the contract of sale correctly. This is an important change, and is recommend is included in all future appointments under a Form 6.

For a general breakdown of the Form 6 and its purpose, we recommend reading this Queensland Government article.



Disclaimer: This publication is not intended to be comprehensive, nor does it constitute legal advice. We are unable to ensure the information is current and there is no guarantee in relation to accuracy. You should seek legal or other professional advice before acting or relying on any of the content of this publication. The views and/or opinions expressed in this publication is that of the author and may not necessarily represent the views and/or opinions of RHC Solicitors.

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