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Two new reviews being conducted by the state government that relate to the real estate sector are currently accepting commentary from the industry and consumers.
Last month, the Queensland government revealed it was seeking views on matters of “off-the-plan” residential property sales contracts — related to the use of sunset clauses by property developers to terminate contracts, and the early release of deposits to property developers.
A sunset clause “typically refers to a term in a contract that allows a buyer or a seller to terminate the contract if the contract does not settle by a specified date”.
The state’s Attorney-General and Minister for Justice Shannon Fentiman said she is aware “of recent reports of developers terminating contracts for ‘off the plan’ sale of land if the contract is not settled within a specified timeframe”.
“At the same time, property prices have been rising, which may leave these buyers with limited or no options within their budget,” Ms Fentiman said.
She acknowledges that off-the-plan residential property contracts are not only complex but also involve non-standard terms: “They also involve risks for both the developer and buyer, such as changing property values over the period of the contract.
“I strongly urge anyone looking to buy off the plan to seek legal advice before signing a contract.”
The consultation — which is seeking input from both consumers and property developers — will remain open until 14 September 2022.
Concurrent with this review, the government has also revealed it is seeking review into mandatory continuing professional development (CPD) for Queensland property agents.
There are four options being considered by the review, including continuation of the status quo, a session-based light regulatory model, a points-based heavy regulatory model, and a second variation on the heavy regulatory model.
According to the Queensland government, analysis in the consultation has suggested that the session-based light regulatory model would be the recommended option moving forward, with the Office of Fair Trading to be responsible for the administration and enforcement of the requirements.
That option would see property agents — agents, salespeople, auctioneers, and resident letting agents alike — required to complete 2 CPD sessions annually.
One session would come from the national property services training package, while the other would come from an annual government-approved list.
Interested individuals are being encouraged to have their say until 30 September 2022 through the government website here.
The review has been welcomed by the Real Estate Institute of Queensland (REIQ), with chief executive Antonia Mercorella stating that the institute had been a strong advocate for the establishment of an annual CPD regime for many years.
“It’s welcome news that such standards are on the discussion table for the broader Queensland real estate profession, as it is well recognised that consumer protection is critical in a real estate context,” she said.
“As the law currently stands in the Property Occupations Act, real estate practitioners are required to undertake initial educational training, however there are no ongoing educational and training requirements despite the increasingly complex legal and regulatory landscape they operate in.
“Like legal and medical practitioners, real estate practitioners’ client relationships are fiduciary in nature and involve onerous legal obligations.”
Highlighting that conducting complex contractual negotiations and facilitating contracts is “part and parcel of the job” for real estate practitioners, she said that the Queensland public “should rightly expect the same levels of professionalism, competency and reliability from real estate agents as they do from lawyers, doctors and certified practising accountants”.
“A CPD program which forms part of the real estate legislation and licensing regime, requiring participants to accumulate a total number of CPD points from approved activities, would allow real estate practitioners to maintain, improve and broaden their knowledge, skills, and competence,” the CEO considered.
The REIQ reported that it would be making a submission on behalf of members, while encouraging real estate practitioners to put forward their own submissions.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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