Property Update: Buying Residential Property in QLD?

If you are, there have been some recent changes to the law that you should be aware of.

The First Change: The Property Agents and Motor Dealers Act (“PAMDA”)

For many years now, real estate agents have had to comply with PAMDA when arranging the preparation, negotiation and execution of residential sale contracts in Queensland.

On 1 October 2010, PAMDA underwent a number of changes designed to streamline the process of making residential sale contracts final and binding between the parties to them.

Now, real estate agents need only attach the statutory warning statement and information sheet somewhere in the contract (and not necessarily as its first pages). Technically, real estate agents are still required to draw a buyer’s attention to the warning statement, information sheet and contract when they are given to the buyer, but if the warning statement is signed by the buyer before the buyer signs the contract, these requirements are effectively deemed to have been met.

What you need to know …

• Buyers can no longer withdraw from contracts simply because their attention wasn’t again drawn to the relevant documents after they were signed.
• Even where a buyer does have a bona fide right to terminate a contract, it may now only do so up to 90 days from date of the contract.
• As a result of the changes, buyers’ rights to terminate residential sale contracts are now more restricted than they have been for some time.
• Buyers must now be more careful in deciding whether to “put pen to paper” when buying residential property in Queensland.

The Second Change: Swimming Pool Fencing

From 1 December 2010, a sweeping reform of pool fencing laws in Queensland requires every property with a swimming pool to become compliant with a uniform set of standards within certain prescribed timeframes.

Ordinarily, every property with a swimming pool will have to become compliant with this uniform standard by 30 November 2015. However, each property with a swimming pool that is sold must become compliant within 90 days of its sale contract settling.

What you need to know …

• Before (and during) negotiating their residential property sales, sellers of properties with swimming pools are required to make statutory disclosures about the states of their swimming pool fencing, and are liable to pay fines if they fail to do so.
• Even if sellers don’t make these disclosures, the buyers they secure will not usually have any right to terminate their contracts on this basis alone.
• Because the swimming pool fencing at residential properties sold on or after 1 December 2010 must be compliant with current standards within 90 days of the date they settle, buyers of such properties could potentially be liable for significant rectification costs very soon after they move in!
• Buyers must therefore be very mindful of the state of the pool fencing at every property they purchase. Failing to do so can give them a very nasty shock at what should instead be an important and exciting miletone.

Protect yourself

In light of the changes referred to above, it is now more important than ever for buyers of residential properties in Queensland to seek the right assistance when negotiating sale contracts with sellers.

Ffrench Legal is a complete-service commercial and property law firm whose solicitors have the knowledge, experience and enthusiasm to assist and protect buyers at all stages of their purchases.

Don’t fall foul of the changes.

Richard Bradfield is an experienced Property Lawyer at Ffrench Legal. To discuss any of the contents of this article, please
email Richard at rbradfield@ffrenchlegal.com or phone him on +61 7 5591 7555.

This article is intended to assist you in ensuring your business achieves maximum potential with or without the assistance of Ffrench Legal.

It does not constitute any form of legal advice.