Publications / Property
The State Government’s announcement on 15 June that real estate commissions will be deregulated will bring Queensland into line with other states and territories and may provide a boost to the industry.
Regulated real estate commission arrangements in Queensland have been the matter of significant speculation for many years as they have not enabled parties, and agents, to negotiate appropriate remuneration for varying service levels and standards.
The State Government has claimed deregulation will lead to increased competition in the industry and bring benefits to both the industry and consumers.
Consultation will commence shortly on the proposal and relevant stakeholders are being actively encouraged to participate in the process to achieve positive outcomes for the benefit of the property industry generally.
The proposal contains a strong consumer protection focus, including mechanisms for speedy resolutions of disputes via the expanded operation of Queensland Civil and Administrative Tribunal (QCAT).
In making the announcement, Deputy Premier and Minister for Local Government and Special Minister of State, The Honourable Paul Lucas, acknowledged that the existing regulated commission regime does not allow flexibility nor does it allow for remuneration to be agreed, and paid, in line with the amount and ‘value’ of the services carried out.
The problem with the current ‘fixed’ commission system is that it does not take into account the circumstances such as the saleability of a property or the amount of effort required for it ultimately to be sold.
Real estate commissions are currently regulated under the Property Agents and Motor Dealers Act 2000 (the PAMD Act) and the Property Agents and Motor Dealers Regulation 2001 (the PAMD Regulation).
Real estate agents and business owners in the residential property market are encouraged to make a submission to the Government during the consultation process.
For further assistance or enquiries please contact:
Ian Hazzard on 07 3233 8976.
Focus covers legal and technical issues in a general way. It is not designed to express opinions on specific cases. Focus is intended for information purposes only and should not be regarded as legal advice. Further advice should be obtained before taking action on any issue dealt with in this publication.