Queensland real estate entered an exciting new era last month, when the state’s new industry-specific real estate laws came into force. The Property Occupations Act is a watershed for the State’s real estate profession – it’s something agents have long been crying out for. 

For many years the Real Estate Institute of Queensland (REIQ) has been lobbying governments on both sides of the political divide for these laws and we applaud the State’s lawmakers for making them a reality.

Quite simply, these laws will cut red tape, simplify transactions and increase transparency. They’re specifically tailored to the realities of the modern real estate profession and they’ll make life much easier for agents and consumers.

Some of the key changes in the Property Occupations Act include:

- The replacement of seven separate agent appointment forms with a single standardised form;

- Removing the requirement for agents to disclose to a buyer the commission the agent is receiving from the seller;

- Extending the statutory limit on lengths of appointments for a sole or exclusive agency from 60 days to 90 days to better reflect market realities;

- Prohibition of price guides for residential auction sales (with some important exceptions);

- Abolition of a separate Form 30 Warning Statement which will be replaced by a short prescribed statement included in a relevant contract; and

- Deregulating the maximum commission rates for residential real estate sales and property management.

The laws will eliminate much of the costly paperwork which has burdened Queensland real estate agencies for far too long – they will help agents to get out of the office and into the field where true success lies. They’ll also help to create a more competitive marketplace by allowing agents and their clients the contractual freedom to determine commissions which reflect the level of services being provided.

One of the most talked about changes in the new laws is the prohibition on price guides for residential auctions. Although not the leading method of sale in Queensland, auctions are nonetheless increasingly popular throughout the state. It’s important to remember the key objective of an auction sale: to allow the market to determine what it is prepared to pay.  And it’s equally important to recognise that these new provisions won’t act as a blanket ban - real estate agents handling an auction property will still be able to provide a buyer with certain information. Agents involved in an auction campaign can provide a prospective buyer with a comparative market analysis (CMA) or a written explanation showing how they decided the market value of the property.  Agents can pass this information on to prospective buyers provided the seller has provided written consent.  

With the rise of online portals in real estate marketing the Act goes a step further, allowing agents to load auction properties by price criteria on websites, enabling consumers to search by price ranges.  Research shows that the vast majority of buyers commence their property search on the internet, so this will allow consumers to get some sense of the price ballpark the property is in. 

These important new laws are a great win for REIQ members and the entire Queensland real estate profession. They deliver sensible and practical reforms which will help the profession prosper well into the future.