The LNP government has said they will cut red tape and that is what is happening.
When the Property Occupations Act (the “Act”) becomes law (and again assuming there are no changes to it), there are a raft of changes that will come into effect that will make all of our lives easier from a management rights perspective.
What will change is…
Section 153 notices
The notice to be given to buyers of management rights businesses about the need to get a licence and obtain body corporate approval will go.
Disclosure of commission
The requirement to disclose the actual commission you are charging on the residential unit will be removed.
Commission is being deregulated. If you wanted to (and the market would bear it) you could charge a flat fee across the entire transaction – rather than splitting it into the REIQ commission on the unit and the balance on the business.
Purchasing a property or business you have listed
Agents will be able to be a purchaser of an interest in a business and charge a commission provided that the proper form of disclosure is made to the seller. The form itself has not been prescribed yet. The Act requires that the agent must act fairly and honestly in relation to the sale and the client must be in as good a position as the client would have been if the property was sold at fair market value.
Exclusive listings go back to 90 day maximums for residential real estate but the Act also clears up a grey area when it comes to management rights. The essence of a management rights transaction is usually the sale of the business.
The Act makes it clear that when a lot is sold with a business that the 90 day maximum does not apply. So, you could have a lawful six month exclusive listing but the safeguard for clients is that it can be revoked by either party on 30 days notice after the first 30 days. Any exclusive agency will last at least 60 days unless both parties otherwise agree.
The obligation to maintain these is removed.
Display of licence
The requirement to have your licence on display is removed.
Waiving a cooling off period
There will no longer be a requirement for lawyers to sign a certificate to waive a cooling off period on a residential contract. Buyers will be able to do it themselves.
Have a merry Christmas!
This year has certainly been a big one of change for us at Hynes Legal. Thank you to all of you who supported us earlier this year when we went through the transition to the new business platform. It wasn’t transition without its difficulties or stressful moments, but we are a much better business for it, and we have some really novel things in the pipeline which we are working on behind the scenes. The year 2014 will have lots of changes in it for all of us – particularly from a legislative front.
We look forward to working with all of you in 2014.