May 2008

Agents’ right to prepare contracts clarified

Several commentators have recently been arguing that Queensland real estate agents who do more when preparing contracts than merely completing pre-printed contract forms, may be engaging in unlicensed ‘legal practice’.

This has made many agents anxious particularly about adding special conditions to pre-printed contract forms.

A solution will soon be at hand.

A Bill has been drafted by the Queensland Attorney General to rectify the problem. Once the Bill is passed by Parliament, PAMDA licensees or employees will be permitted to “prepare or complete a property contract or other document as part of performing…the ordinary course of business undertaken generally by a licensee.”

Exactly what an agent can do includes inserting information in a blank space and crossing or leaving out an alternative in a pre-printed contract.

Very importantly, the right of agents to add or alter special conditions is clarified. The use of solicitors’ precedent special conditions, for example like those contained in our Qld Conveyancing Clause Library, is specifically approved!

Buyers and Sellers will be able to lawfully make their own additions to a contract (including special conditions) and an agent may also insert into the contract, the written instructions from the buyer or seller.

Agents will however be restricted from giving legal advice in relation to a property contract or “preparing or completing a document prescribed by regulation”.

Watch out for notification in upcoming Property & Leasing eNews bulletins about the progress of this legislation.

Carter Capner Law provides Agents with a list of commonly used special conditions in our QLD Conveyancing Clause Library on our Agent and Development Centre website.

Apply now for your free Agent & Developer Centre membership!

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