The state of property law in Queensland is about to be shaken up as a raft of new legislation comes into effect from 1 December 2014. This new legislation will have drastic changes on the conveyancing process, especially in the construction of the contract of sale for residential property.
The following pieces of legislation will come into effect from the beginning of December:
- Property Occupations Act 2014;
- Property Occupations Regulation 2014;
- Agents Financial Administration Act 2014; and
- Agents Financial Administration Regulation 2014.
These new laws aim to reduce red tape and simply the conveyancing process.
As part of this reduction in red tape, one of the most obvious changes is the deletion of the PAMD Form 30c Warning Statement, which up until now had to be attached to the front of a contract of sale for it to have any effect.
From December 1 this warning statement will no longer be used, instead replaced with a simple warning statement that is to be inserted into the contract itself.
This new warning statement is as follows:
“The Contract may be subject to a 5 day cooling-off period. A termination penalty of 0.25% of the purchase prices applies if the Buyer terminates the Contract during the statutory cooling-off period. It is recommended the Buyer obtain an independent property valuation and independent legal advice about the Contract and his or her cooling-off rights, before signing.”
This statement must use these exact words and be obvious, clear and legible. It is to be placed on the same page within the contract that the Buyer signs to execute the contract and be located directly above the space reserved for the buyer’s signature.
When presenting the contract to the buyer for the first time, real estate agents will be required to draw the buyer’s attention to the statement.
It is not a requirement for the agent to draw the buyer’s attention to the statement on subsequent presentations of the contract.
As contracts can be signed in person, by mail, or by electronic means, upon signing the Buyer agrees that their attention has been drawn to the warning statement, hence the requirement that it be located directly above where the Buyer signs the Contract.