Streten Masons Lawyers have been closely monitoring changes to the Property Agents and Motor Dealers Act (PAMDA), which is due to be split into four separate Acts later this year. If you are a real estate agent, auctioneer, buyer or seller of residential property, property developer, body corporate, or community manager, you need to be aware of the changes the new legislation will make to licence categories before they come in to effect.
The introduction of the Property Occupations Act 2014 will see the pre-existing nine categories of licence cut down to just three:
- Auctioneer licence
- Real estate agent licence
- Resident letting agent licence
How will this apply to you?
In order to hold an auction on real property or on goods directly connected with real property, the auctioneer must hold a full auctioneer licence. Under the new Property Occupations Act Qld (2014), trainee auctioneers will no longer be considered a valid category of registration and thus be unable to hold a real property auction without an auctioneer licence. This will not be a problem for anyone wishing to become an auctioneer after the legislation takes effect, as it will no longer be necessary to undergo a training period before applying for a licence.
Real estate agents
A real estate agent licence is required for any person wishing to act as a real estate agent in Queensland. Under the new legislation, corporations will become eligible to obtain a real estate agent licence if it can be satisfied that the chief executive director is also a real estate agent. The following changes will also be applied:
- Pastoral house directors and managers will become real estate agents,
- pastoral house salespeople will now become real estate salespeople, and
- pastoral house auctioneers will become both auctioneers (under the Property Occupations Act 2014) and chattel auctioneers (under the Motor Dealers and Chattel Auctioneers Act 2014).
Under previous legislation, property developers were required to hold either a property developer’s licence or a property developer director’s licence. The Property Occupations Act 2014 will stipulate that property developers and their employees no longer need to hold a licence. They will still be required, however, to make certain disclosures to the client (regarding benefits, for example) prior to entering in to a contract.
Resident letting agents
The resident letting agent licence allows the holder to let and collect rents for lots in a building complex. The new legislation also provides that the resident letting agents will:
- be able to manage more than one building complex,
- not be required to reside on-site,
- not be required to provide evidence of body corporate approval with a licence application.
Owners of large-scale residential property (e.g. shopping centres)
You will no longer be required to hold a licence. This will also apply to organisations that only manage the property that they, a parent company, or a subsidiary, owns.
Displaying your licence
While the new legislation provides that you don’t have to display your licence in your place of business, nor display a sign with your name and status as a licensee, it will still be required to display the licence at the site of an auction. As before, you must always show your licence to any client who requests to see it.
The new legislation will be coming in to effect over the course of this year. Keep yourself in the loop by signing up for the Streten Masons Lawyers e-newsletter Property Legislation QLD, which will let you know any new developments as we become aware of them.