A move welcomed by those within the industry, the Property Agents and Motor Dealers Act 2000 (PAMDA) is set to be repealed and replaced later in 2014. Passed on 7 May 2014, the Property Occupations Bill 2013 (the Bill) will allow for the removal of complexities and unnecessary red tape associated with the PAMDA, and implements a more modern and streamlined process within the property industry.
A number of key changes are highlighted below:
The Residential Property Sale Process
- The buyer no longer needs to be directed to the PAMDA warning statement and the Body Corporate and Community Management Act (BCCM) information sheet prior to signing the contract.
- The PAMDA warning statement will be replaced with a short warning added to the contract signing page.
- The warning will not be required for counter offers by a seller so long as the particular property and buyer do not change.
- A BCCM information sheet will no longer need to be provided to buyers purchasing a property in a community title scheme.
- Buyers will no longer have termination rights if the warning is not included, rather the seller will risk a fine of up to $22,000 for individuals or $110,000 for corporations.
- A lawyer’s certificate will not be required to waive or reduce the cooling-off period.
- The cooling off period will not apply to ‘sophisticated party transactions’ where the buyer is:
- The government or a statutory authority;
- A listed public company or its subsidiary; or
- Buying more than three lots at a time.
- Real Estate Agents will no longer be required to give prospective buyers a notice if the vacant land being sold is not zoned for residential purposes.
- The definition of ‘residential property’ contained in PAMDA ...