How Does The Property Occupations Act 2014 (QLD) (“POA”) Affect The Contract?
Application of Property Occupations Act (POA)
Property Occupations Act 2014 (QLD) contains provisions relating to the sale of residential property. Those provisions apply to contracts for the sale of property that is used, or is intended to be used, for residential purposes but will not apply to a contract:
- for the sale of property where it is used primarily for industry, commerce, or primary production;
- formed on a sale by auction (directly on the fall of the hammer by outcry or directly at the end of another similar type of competition for purchase);
- entered into, no later than 5.00 pm on the second clear business day after the Property was passed in at auction with a registered bidder for the auction;
- formed because of the exercise of an option granted under an earlier agreement if the parties to the Contract are the same parties as in the earlier agreement;
- where the Buyer is:
- a publicly listed corporation; or
- a subsidiary of a publicly listed corporation; or
- the State or a statutory body; or
- purchasing at least three lots at the same time (even if under separate contracts).
If Property Occupations Act 2014 (POA) applies, you may be entitled to a five-business-day cooling-off period.
The cooling-off period starts on the day you receive from the Seller or their agent a copy of the contract signed by both parties or, if that day is not a business day, on the next business day. If the Seller signed the Contract before you did, the cooling-off period starts on the day you signed the Contract and communicated your acceptance to the Seller.
The cooling-off period ends at 5:00 pm on the 5th business day.
You are entitled to terminate the Contract during the cooling-off period. If you do, the Seller may retain a penalty of 0.25% of the purchase price from the deposit paid under the Contract. The balance of the deposit (if any) must be refunded to you within 14 days after termination.
If you terminate the Contract and later decide you would like to purchase the Property, there is a risk that the Seller will not enter into another contract with you.
If you decide to terminate the Contract during the cooling-off period you should tell us as soon as possible so we can give notice before the period ends.
You may shorten the cooling-off period or waive the benefit of it entirely by giving written notice to the Seller of the shortening or the waiver. It is up to you whether you wish to do this.
- Particular Words Must Be in the Contract
If Property Occupations Act (POA) applies, the Seller is required to ensure that, when they first give you the proposed Contract for signing, it contains a conspicuously written note (immediately above and on the same page where you sign to indicate your intention to be bound by the Contract) which draws your attention to the cooling-off period and the termination penalty. It must also include a recommendation that you obtain an independent property valuation and independent legal advice before signing the Contract.
If the required statement is not included in the Contract, the Seller or the Seller’s agent may have committed an offence under a Property Occupations Act (POA) and be liable to a fine. Please note that any non-compliance will not affect the validity of the Contract or give you a right of termination.
The note recommends that you obtain an independent valuation of the Property. We endorse this recommendation but do not provide valuation advice. The price is something you need to satisfy yourself about. The Contract is not conditional on a valuation. If you do not want to proceed without a valuation, you will have to obtain it before entering the Contract or expiry of the cooling-off period.
Visit our main article here: Property Occupations Act 2014