The Queensland government has taken the sword to the PAMDA monster by slowly cutting off one of its heads but leaving it with enough to survive and even thrive.
Gone are the impossibly complex document ordering, contract presentation and re-presentation requirements.
When presenting the contract to the buyer, the seller or agent is still obliged to “give the buyer a clear statement directing the buyer’s attention” to the warning statement and if a unit, the BCCM 14.
There will no longer be any specified contract documentation order. The only requirement when giving the contract to the prospective buyer for signing, is that they are “attached” securely so that they all appear to be a single document.
However, if the contract is sent to the buyer by e-mail, the above statements must be included in the same e-mail. If sending by fax, they must be sent in the same fax transmission.
The same applies when the signed contract is returned to the buyer, ie the warning statement and the BCCM 14 (if required) must be “attached”.
Offences still apply to agents and sellers.
Contracts can no longer be terminated for failure to attach the warning statement to the contract.
Contracts can be terminated prior to settlement (but only within a 90 day period following the buyer’s receipt of the signed contract from the seller) for failure to give the clear “directing attention” statement but not if the buyer has signed the warning statement.
These changes will kill off most of the current generation of PAMDA termination opportunities.
The PAMDA monster will still survive with several heads intact. One of the most vicious, the “residential property” definition is alive and well. Inadvertent non-compliance will still occur in this area at huge cost to the industry as well as buyers and sellers.
The death of even one of the monster’s heads will be slow. The industry has to endure until October 1st for the changes to come into effect.
All travellers on the road from contract signing to completion must remain vigilant – the hungry PAMDA monster still has a huge appetite.