Earlier this year legislation went through the Queensland State Parliament to change the act under which real estate agents operate. As of 1st December 2014 the governing legislation will no longer be PAMDA (Property and Motor Dealers Act), it will be POA (Property Occupations Act).
A number of forms of appointment have been condensed into one – a Form 6 – Appointment and reappointment of a property agent, resident letting agent or property auctioneer. The Exclusive Listing period can now be up to 90 days to take into account the current market.
Commission is no longer capped, it is now up to agents to decide what they wish to charge. Previously the limit was 5% of the first $18,000 and 2.5% of the balance, now there is no limit! This brings Queensland into line with other states. It will be interesting to see how this pans out. At this point we will be making things simpler for our clients by opting for a straight 2.5%. To work out commission on a property just take the purchase price and divide by 40 then add 10% GST.
One of the reforms affecting real estate agents in Queensland means it is now illegal for agents selling homes by auction to list a price guide. It also bans agents from discussing realistic price expectations of a property with potential buyers and sellers, as well as guesstimating what it may fetch. On realestate.com.au and other prominent websites the properties are still required to have a value in the background for searching purposes so an astute buyer can work it out. With the permission of the seller the agent can supply the potential buyers with a CMA (Comparative Market Analysis) which indicates how the price decision was made.