Property

22 November 2007

Clamp down on contract preparation by non-lawyers

As of 1 July 2007 through amendments made to the Legal Profession Act 2007 (Qld) it is unlawful for any person who is not an Australian legal practitioner to engage in legal practice in Queensland.

Section 24 of the Legal Profession Act 2007 (Qld) provides specific exemptions for particular kinds of ‘legal practice’ which are undertaken by lawyers, by trustee companies and their employees (in preparing wills, carrying out and administering trusts and estates) and PAMDA licensees (real estate agent, restricted letting agent, auctioneer, motor dealer, pastoral house director and pastoral house licensee’s). The exemption for PAMDA licensees applies in only very limited circumstances.

Prior to 1 July 2007 PAMDA licensees could prepare or assist in the preparation of a contract for another person.

From 1 July 2007 PAMDA licensees:

• may only fill-in details in a pre-printed contract or other documents as part of performing their work as a PAMDA licensee, but
• must not give advice about the contract, document or the details that are filled-in.

This means that from 1 July 2007 a PAMDA licensee and their employees cannot lawfully do things which they have in the past taken for granted, including:

• adding clauses, conditions, annexures or attachments to pre-printed contracts or other documents, or
• give any advice (no matter how minor) about a contract, the document or any details that are filled in.

If you currently or are considering preparing or providing advice on contracts, options, heads of agreements, letters of offer or any other documents you should seek legal advice immediately to ensure that you are not engaging in legal practice and therefore personally liable for penalties of up to a $22,500 fine or two years imprisonment.

For further assistance or enquiries please contact:

Rodney Bell on 07 3233 8936
Stephen Jones on 07 3233 8973.