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• eNews index
• PAMDA Alert: Notice requirements when seller responds to buyer's counter-offer
• "Second PAMDA notice" compliance just as important to avoid contract crashes
• Development Approval required for a lease? When?
• LawSpace for commercial, retail & industrial landlords

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PAMDA Alert: Notice requirements when seller responds to buyer's counter-offer

A residential sales contract in Queensland that has been prepared by a seller or a seller's Agent must be presented to the buyer in compliance with PAMDA.

What if the buyer submits an offer or the buyer makes a counter-offer?

There are no PAMDA requirements relating to the submission of an offer or counter-offer by a buyer, BUT PAMDA APPLIES TO THE SELLER'S RESPONSE (see updated in Dec 09 eNews)

The seller can accept a buyer’s offer or counter offer by signing the contact or initialling the changes. However when returning the executed contract to the buyer, the seller must comply with s 365 of PAMDA and deliver the contract to the buyer in a particular manner (see Second PAMDA notice article in this eNews).

If the seller rejects the offer or counter offer and wants to make a further offer, he or she can alter the purchase price again, initial the changes and resubmit the contract to the buyer. However the warning statement etc provisions of PAMDA relating to contract presentation (s 366) must be observed in the same way as when a contract is first presented to a buyer.

It is important to remember that for each and every time the seller makes a counter offer by amending the contract, the warning statement etc provisions of PAMDA relating to contract presentation (s 366) must be observed.

Follow these PAMDA presentation rules when presenting a contract to a buyer whether for the first time or if a counter-offer has been made by the seller.

Order of documents when faxing to Buyer for signing

• Single cover page that draws the Buyers attention to Warning Statement, Contract and (if a Unit) the Information Sheet and Disclosure Statement if not already given to the buyer.
• Warning Statement (Form 30c)
• Information Sheet (If a Unit) (Form BCCM 14)
• Contract
• Disclosure Statement (if a Unit and not already given)
• Other documents

Order of documents when delivering (by post or hand delivery) to Buyer for signing

• Single cover letter that draws the Buyers attention to Warning Statement, Contract and (if a Unit) the Information Sheet and Disclosure Statement if not already given to the buyer (NB: this letter must not be attached to the contract)

• *Warning Statement (Form 30c)
• *Information Sheet (If a Unit) (Form BCCM 14)
• *Contract

• Disclosure Statement (if a Unit)
• Other documents
• *items marked "*" must be attached together by binding or stapling

Order of documents when emailing to Buyer for signing

(Carter Capner Law does not recommend presenting contracts by email due to the high risk of PAMDA non compliance)

• A message in the body of the email that draws the Buyers attention to Warning Statement, Contract and (if a Unit) the Information Sheet and Disclosure Statement if not already given to the buyer.
• A single PDF attachment (that is protected against unauthorised change) consisting of only the:
  • Warning Statement (Form 30c)
  • Information Sheet (If a Unit) (Form BCCM 14)
  • Contract
• The Disclosure Statement (if a Unit) and other documents can be sent in the same email but must be attached as a separate attachment

Don't forget to comply with the Electronic Transactions (Queensland) Act 2001 (see eNews December 2008).

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"Thank you very much for your very professional attention to this matter for us. We will certainly be seeking your services should we need legal services in the future."
B Enterprises Pty Ltd