Property Agents and Motor Dealers Act 2000 |
Deregulation of real estate commissions
The former Minister responsible for Fair Trading announced on 15 June 2011 that Queensland will move to deregulate real estate commissions.
Deregulating commissions for the purchase or sale of residential property is expected to lead to increased competition in the industry, which will benefit both consumers and agents.
Commencing the deregulation process will bring Queensland into line with other states and territories. Previous national and state reviews have recommended deregulation of real estate commissions.
Deregulation will not be introduced at the expense of consumers. Any changes will have strong consumer protections, and the Queensland Civil and Administrative Tribunal (QCAT) will be given the jurisdiction to deal with situations where it is alleged by a seller that a commission is harsh and unconscionable.
The current commission system does not take into account the circumstances of the property sale, such as the saleability of the property or the amount of effort required for it ultimately to be sold. While there may be perceived concerns that deregulation may lead to increases in commissions, experience in other jurisdictions shows that this is not the case. QCAT will be available as an added protection.
The Queensland Government will soon begin a consultation and negotiation process with relevant stakeholders. Further information will be posted here as it becomes available.
Review of the Property Agents and Motor Dealers Act 2000
The former Service Delivery and Performance Commission (SDPC) conducted a review to identify the major regulatory features of the Property Agents and Motor Dealers Act 2000 (PAMD Act) and its associated Regulation and Codes of Conduct. The review recommended changes to reduce red tape for business while maintaining effective consumer benefits.
The Queensland Government considered the review and provided its response, outlining those recommendations that it will implement. Both the SDPC review report and the Government's response to the recommendations are available to download.
The recommendations accepted by the government are to be implemented in three stages by the Department of Justice and Attorney-General.
These are the:
- Property Agents and Motor Dealers and Other Legislation Amendment Act 2010
- split of the PAMD Act into three industry specific Acts and an administration Act
- introduction of a national occupational licensing system for property agents.
Property Agents and Motor Dealers and Other Legislation Amendment Act 2010
The Property Agents and Motor Dealers and Other Legislation Amendment Act 2010 commenced on 1 October 2010.These amendments:
- simplified the process for the presentation and delivery of residential real estate contracts
- introduced updated prescribed warning statement forms
- removed the requirement for applicants to supply photo identification for licensing purposes, except for commercial agent applicants
- removed the requirement for motor dealers to provide proof of Local Authority approval for their premises
- removed the requirement to keep employment authorities for registered employees
- removed the requirement to seek prior approval to open a trust account
- removed the requirement for resident letting agent licence applicants to include proof of body corporate approval at the time of application.
Split of the PAMD Act
The SDPC review recommended that the PAMD Act be separated into industry specific Acts, with requirements relating to the administration of trust accounts and the claim fund to sit in a separate Act.Bills to enable this split were introduced into the Queensland Legislative Assembly on 24 November 2010:
- Property Agents Bill 2010
- Motor Dealers and Chattel Auctioneer Bill 2010
- Commercial Agents Bill 2010
- Agents Financial Administration Bill 2010.
The four Bills lapsed on 19 February 2012 with the dissolution of Parliament prior to the 2012 Queensland General Election.
Last reviewed 20/02/2012 |
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