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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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"Second PAMDA notice" compliance just as important to avoid contract crashes

A high proportion of residential Queensland contracts are returned to buyers or their agent after signing, in a way that does not meet the requirements of section 365 of PAMDA - leaving the door open for buyers to withdraw.

After the buyer signs and gives the contract documents to the seller and the seller has signed and dated the contract, a copy of the signed contract must be returned to the buyer in a specific way.

Section 365 specifies the order of documents etc and the drawing of the buyer's attention to the Warning Notice. Different rules apply depending on whether the signed documents are returned by hand, post, fax or email.

If section 365 is not complied with, the buyer will not be bound under the contract and the buyer will be entitled to withdraw the offer to purchase at any time before being bound, by giving a written notice of withdrawal to the seller or the seller’s agent.

One can imagine situations where the parties believed they had a binding contract only to find the buyer validly exercising its withdrawal right just prior to settlement.

If there is a dispute as to whether the buyer is bound by the contract, the seller will bear the burden of proving that PAMDA has been complied with and the buyer is bound under the contract.

The result of non-compliance in this situation is similar to that which occurs if the PAMDA warning statement contract presentation provisions of s 366 (the "First PAMDA Notice ") are not complied with.

Below is a summary of s 365 requirements that apply to meet the Second PAMDA notice requirements when returning a fully signed contract etc to a buyer or their agent.

If faxing to the Buyer or Buyers Agent:

(Please Note: contracts can only be faxed to a Buyer if they have consented in writing to receive electronic communications. See eNews December 2008)

• Single cover page that draws the Buyers attention to Warning Statement, Contract and (if a Unit) the Information Sheet.
• Warning Statement (Form 30c)
• Information Sheet (If a Unit) (Form BCCM 14)
• Contract

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  Disclosure Statement (if a Unit and not already given)
• Other documents

If delivering (by post or hand delivery) to the Buyer or Buyers Agent:

• Single cover letter that draws the Buyers attention to Warning Statement, Contract and (if a Unit) the Information Sheet (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

If emailing to the Buyer or Buyers Agent:

(Please Note: contracts can only be emailed to a Buyer if they have consented in writing to receive electronic communications.)

(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.
• 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.

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