CPPDSM4008A Manual Part 2.v1.1

Identify legal and ethical
requirements of property sales

to complete agency work
CPPDSM4008A Part 2
v17 July 2016
CPPDSM4008A - Part 2
Identify legal and ethical
requirements of property sales to
complete agency work
Version Number: 17
Effective July 2016
These materials were prepared by The Real Estate Institute of Queensland.
2016 The Real Estate Institute of Queensland
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may be reproduced without prior written permission from REIQ.
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preparation of this material, recipients:
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CONTENTS
UNIT 16 PREPARING AND DELIVERING RESIDENTIAL CONTRACTS
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[16.1] Sequence of signing documents by buyer

[16.2] Directing the buyers attention
[16.3] Sending documents to the buyer by email or fax
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UNIT 17 TERMS OF CONTRACT
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[17.1] Requisitions on title

[17.2] Acceptance of title
[17.3] Defects in title
[17.4] Terms of the contract
[17.4.1] Improvements [Clause 1.1 (2) (q)]
[17.4.2] Investment of deposit (Clause 2.3)
[17.4.3] Interest on deposit (Clause 2.4)
[17.4.4] Land tax [Clause 2.6 (4)]
[18.4.5] Requirements of authorities [Clause 7.6 (2)]
[17.4.6] Property adversely affected (Clause 7.7)
[17.4.7] Insurance (Clause 8.1)
[17.4.8] Access (Clause 8.2)
[17.4.9] Foreign ownership (Clause 10.2)
[17.5] Disclosure
[17.6] Learning activity unit 17
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PART 6: COMPLETION GUIDE FOR CONTRACTS
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UNIT 18 THE REIQ CONTRACT FOR HOUSES AND RESIDENTIAL LAND
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[18.1] Contract format

[18.2] How to fill out the reference schedule
[18.3] A guide for completing the Contract for Houses and Land
[18.3.1] Contract date
[18.3.2] Agent
[18.3.3] Parties
[18.3.4] Property
[18.3.5] Title reference
[18.3.6] Land area
[18.3.7] Present use
[18.3.8] Local government
[18.3.9] Excluded fixtures
[18.3.10] Included chattels
[18.4] Matters affecting property
[18.5] Price
[18.5.1] Deposit holder
[18.5.2] Purchase price
[18.5.3] Deposit
[18.5.4] Default interest rate
[18.5.5] Finance
[18.5.6] Finance amount
[18.5.7] Financier
[18.5.8] Finance date
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[18.6] Buyers inspection

[18.6.1] Building inspection and pest control inspection
[18.6.1] Title encumbrances
[18.6.2] Tenancies
[18.6.3] Vacant possession
[18.6.4] Managing agent
[18.7] Pool safety
[18.7.2] Electrical safety switches
[18.7.3] Smoke alarms
[18.7.3] Neighbour Disputes
[18.8] Settlement date
[18.8.1] Place for settlement
[18.9] Signing
[18.9.1] Witness
[18.9.2] Initialling
[18.10] Contract special conditions
[18.11] Dates
[18.11.1] Dates where possible should always be actual dates.
[18.11.2] Dates for finance (should be a business day)
[18.11.3] Building and pest inspection dates
[18.11.4] Pool Safety
[18.11.5] Dates for settlement
[18.11.6] Time limits
[18.11.7] Calculating contract dates
[18.12] Deposits
[18.13] Definitions
[18.14] Contract time line
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UNIT 19 CONTRACTS FOR RESIDENTIAL LOTS
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[19.1] Community Titles Scheme

[19.2] Common community title terminology
[19.2.1] Strata title
[19.2.2] Group title
[19.2.3] Standard format lots
[19.2.4] Building format lots
[19.2.5] Volumetric and layered schemes
[19.2.6] Community title scheme (CTS)
[19.2.7] Community management statement (CMS)
[19.2.8] Body corporate
[19.2.9] Body corporate manager
[19.2.10] Body corporate secretary
[19.2.11] Regulation module
[19.2.12] Administration fund
[19.2.13] Sinking fund
[19.2.14] Lot entitlement
[19.3] Sales documentation for community title lots
[19.3.1] BCCM Disclosure Statement
[19.3.2] BCCM Section 206 Disclosure Statement
[19.4] Selling units off the plan
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[19.5] Sellers disclosure (implied warranties)

[19.6] Sellers and agents
[19.7] Contract documentation for the sale of community title lots
[19.7.1] Application
[19.7.2] Required information
[19.7.3] Format
[19.7.4] Section 206 Disclosure Statement
[19.7.5] Section 206 Disclosure Statement information
[19.7.6] Completing the REIQ Contract of Sale for Residential Lots in a Community
Titles Scheme
[19.7.7] The reference schedule
[19.7.8] Contribution schedule lot entitlements
[19.7.9] Additional body corporate information
[19.8] Sellers disclosure (contract warranties)
[19.9] Checklist for community titles schemes contracts
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UNIT 20 PARTICULAR CIRCUMSTANCES AFFECTING THE CONTRACT
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[20.1] Blocks of flats

[20.2] Company title schemes
[20.3] Property sold by public auction
[20.4] Special conditions
[20.5] Commonly used special conditions
[20.6] Wording of special conditions
[20.7] Seller (vendor) finance
[20.8] Land Sales Act 1984
[20.9] Off-the-plan sales
[20.9.1] Step 1 - Survey the land and draw the plan
[20.9.2] Step 2 - Lodge the plan with council
[20.9.3] Step 3 - Land can be promoted for sale
[20.9.4] Step 4 - Sellers disclosures
[20.9.5] Step 5 - Significant variation notice
[20.9.6] Step 6 - Delivery of plan
[20.9.7] Step 7 - Finalisation of sale
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APPENDIX A - LEARNING ACTIVITY ANSWERS
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APPENDIX B REIQ Fact Sheet New local laws applying to contracts of sale
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APPENDIX C REIQ Fact Sheet Legal Profession Act 2001
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FORMS INCLUDED IN THIS MANUAL

Contract for Houses and Residential Land
Disclosure Statement
Contract for Residential Lots in a Community Titles Scheme
CPPDSM4008A Part 2
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Unit descriptor
This unit of competency specifies the outcomes required to meet the core legal and ethical
requirements associated with property sales. This includes awareness of the legislation relating to
property sales, the role and responsibility of agency personnel in property sales, the administration of
sales transactions and the completion of sales documentation.
The unit may form part of the licensing requirements for persons engaged in real estate activities in
those States and Territories where these are regulated activities.
Application of the unit

This unit of competency supports the work of licensed real estate agents and real estate
representatives involved in property sales. It addresses the requirements for licensed real estate
agents and real estate representatives to be able to identify and explain relevant legislation, roles,
responsibility and documentation.
ELEMENT
PERFORMANCE CRITERIA
1 Develop knowledge of
property sales
1.1
Types and characteristics of land tenure systems are identified

in line with legislation.
1.2
Legislation regulating the sale of properties is identified in line

with agency practice.
1.3
Information provided on the Certificate of Title is checked for

accuracy against the agency agreement.
1.4
Types of property ownership are identified in line with

legislation.
1.5
Legal requirements relating to the sale of property are identified

and interpreted in line with legislation and agency requirements.
1.6
Requirements of ethical and conduct standards and consumer

protection and privacy legislation in relation to the sale of
property are identified in line with legislative requirements and
agency practice.
2.1
Need for demonstrating effective communication strategies in

establishing rapport with clients, determining client needs,
providing accurate advice, addressing client concerns and
dealing with conflict is identified in line with agency practice.
2.2
Listing opportunities are identified and assessed in the context

of legislative requirements and agency practice.
2.3
Methods of selling property are identified and assessed in the

context of legislative requirements and agency practice.
2.4
Sale authority agreements are identified, completed and stored

in line with legislative requirements and agency practice.
2.5
Strategies for marketing property are identified and assessed in

the context of legislative requirements and agency practice.
2.6
Purpose and terms of statutory statements required to be

prepared by sellers for the sale of property and businesses are
identified and interpreted in the context of legislative
requirements and agency practice.
2.7
Contractual documents relating to the sale of property are

identified, interpreted, completed and stored in line with
legislative requirements and agency practice.
2.8
Process for settling the sale of property is identified in the

context of legislative requirements and agency practice.
2 Develop knowledge of
sales process
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CPPDSM4008A Part 2
2.9
3 Identify roles and

responsibilities of sales
personnel.
3.1
Processes for receipt, recording, banking and release of deposit

moneys are identified in the context of legislative requirements
and agency practice.
Relationship between salesperson and agency principal is
identified in the context of legislative requirements and agency
practice.
3.2
Roles and responsibilities of agent in sale of property

including general disclosure requirements are identified,
interpreted and assessed in the context of legislative
requirements and agency practice.
3.3
Restrictions on agents purchasing property and sanctions for

violations of restrictions are identified, interpreted and complied
with in line with legislative requirements and agency practice.
3.4
Controls and sanctions on secret commissions are identified in

the context of legislative requirements and agency practice.
3.5
Entitlements and commissions for agents are identified and

calculated in the context of legislative requirements and agency
practice.
Required skills and knowledge

This section describes the essential skills and knowledge and their level, required for this unit.
Required skills
Ability to communicate with and relate to a range of people from diverse social, economic and
cultural backgrounds and with varying physical and mental abilities
Analytical skills to interpret documents such as legislation, regulations, contracts, contract notes,
sale authority documents and certificates of title
Computing skills to access agency and resource databases, use standard software packages,
send and receive emails, access the internet and web pages, and complete and lodge standard
documents online
Decision making and problem solving skills to analyse situations and make decisions associated
with the sale of property
Literacy skills to access and interpret a variety of texts, including contracts; prepare general
information and papers; prepare formal and informal letters, reports and applications; and
complete prescribed forms
Negotiation skills required for interacting with sellers and buyers
Numeracy skills to calculate and interpret data, such as deposits, entitlements and commissions
Planning, organising and scheduling skills to undertake work-related tasks, such as preparing
correspondence, organising deposits and arranging property inspections
Research skills to identify and locate documents and information relating to the sale of property
Risk management skills to identify risks associated with discussing sale and purchase options with
sellers and buyers
Self-management skills to organise own work, deliver quality customer service and effectively
manage competing demands
Teamwork skills to work effectively in and promote communication between sales, property
management and administrative teams in an agency environment
Verbal communication skills required for face-to-face communication with real estate sellers and
buyers.
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Required knowledge and understanding
Agent entitlements and commissions
Contract law in the real estate industry, including agent liability for breach of contract and
negligence
Ethical and conduct standards relevant to licensed real estate agents and real estate
representatives
Key principles of consumer protection and privacy legislation
Key principles and terminology of property law
Legislative limitations on agency practice
Offences and penalties under legislation
Relevant federal, and state or territory legislation and local government regulations relating to:
Anti-discrimination and equal employment opportunity
Consumer protection, fair trading and trade practices
Employment and industrial relations
Financial services
OHS
Privacy
Property sales
Risk and risk management strategies
Roles and responsibilities of estate agency personnel in relation to the sale of property
Sales process, including ways of obtaining listings, methods of selling property, strategies
for marketing property, and the process for settling the sale of property
Trust funds and legislative controls on trust funds.
Range statement
The range statement relates to the unit of competency as a whole. It allows for different work
environments and situations that may affect performance. Bold italicised wording in the performance
criteria is detailed below.
Land tenure systems may
include:
Legislation may include:
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Freehold or fee simple
Leasehold.
Relevant federal, and state or territory legislation and local

government regulations relating to:
Anti-discrimination and equal employment opportunity
Consumer protection, fair trading and trade practices
Employment and industrial relations
Financial services
OHS
Privacy
Property sales.
CPPDSM4008A Part 2
Certificate of Title may

include:
Types of property
ownership may include:
Effective communication
strategies may include:
Listings may include:
CPPDSM4008A Part 2
A plan of the land
Details of caveats over the land, such as easements and

covenants
Lot, plan and subdivision
Names of registered proprietors
Names of the mortgagees and dates of registration and

discharge
Volume and folio numbers.
Company ownership
Joint tenants
Sole owner
Tenants in common.
Active listening
Being non-judgmental
Exploring problems
Expressing an individual perspective
Providing sufficient time for questions and responses
Providing summarising and reflective responses in conflict

situations
Using appropriate words, behaviour and posture
Using clarifying and summarising questions
Using clear and concise language
Using culturally appropriate communication
Using plain English
Using verbal and non-verbal communication.
Advertising
After-sales letters
Builders and developers
Callers to the office
Conjunctions and multiple listings
Farming
Open for inspections
Owner boards and seller advertisements
Recommendations
Telemarketing.
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Methods of selling
property may include:
Sale authority agreements

may include:
Statutory statements
required to be prepared by
sellers may include:
Contractual documents
may include:
Roles and responsibilities

of agent in sale of property
may include:
Restrictions on agents
purchasing property may
include:
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Alternative sales methods, such as set sales
Auction
Conjunctional sales
Private sale or treaty
Sale by tender
Seller sale.
Auction authority
Exclusive sale authority
General sale authority
Sole sale authority,
Additional sellers statement
Sellers statement
Statement for the sale of a small business.
Contract note
Contract of sale of real estate
Finance statement to buyers
Prescribed or permitted forms used by agents in property sales
Release of deposit moneys.
Agreement to sell
Communication
Completing contract documents
Ethical and conduct standards
General disclosure requirements
Legal responsibility
Listing
Marketing
Negotiating sale terms and conditions
Office procedures for presenting the property
Prospecting
Providing information to buyer
Sale settlement.
Restrictions on licensed real estate agents and real estate

representatives
Restrictions on support staff
Restrictions on the spouse or domestic partner, parent, brother,

sister or child of licensed real estate agents or real estate
representatives.
CPPDSM4008A Part 2
Evidence guide
The evidence guide provides advice on assessment and must be read in conjunction with the
performance criteria, required skills and knowledge, the range statement and the Assessment
Guidelines for this Training Package.
Overview of assessment
This unit of competency could be assessed through case studies, demonstrations, practical exercises
and targeted written (including alternative formats where necessary) or verbal questioning relating to
the legal and ethical requirements of property sales. The case studies, demonstration and questioning
would include collecting evidence of the candidates knowledge and application of ethical standards
and relevant federal, and state or territory legislation and regulations. This assessment may be carried
out in a simulated or workplace environment.
Critical aspects for assessment and evidence required to demonstrate competency in this unit
A person who demonstrates competency in this unit must be able to provide evidence of:
Ability to communicate effectively and accurately with clients
Application and knowledge of ethical and conduct standards and key principles of consumer
protection and privacy in relation to the sale of property
Application and knowledge of the sales process, including ways of obtaining listings, methods of
selling property, strategies for marketing property, and the process for settling the sale of property
Application and knowledge of accurately completing statutory and agency sales documentation,
including authorities and contracts
Application and knowledge of the legislation and regulatory framework relevant to the sale of
property
Application and knowledge of the role and responsibilities of the agent in the sale of property,
including the legislative restrictions on agents purchasing property and the controls and sanctions
associated with secret commissions.
Context of and specific resources for assessment

Resource implications for assessment include:
Access to suitable simulated or real opportunities and resources to demonstrate competence
Assessment instruments that may include personal planner and assessment record book
Access to a registered provider of assessment services.
Where applicable, physical resources should include equipment modified for people with disabilities.
Access must be provided to appropriate learning and/or assessment support when required.
Assessment processes and techniques must be culturally appropriate, and appropriate to the
language and literacy capacity of the candidate and the work being performed.
Validity and sufficiency of evidence require that:
Competency will need to be demonstrated over a period of time reflecting the scope of the role
and the practical requirements of the workplace
Where the assessment is part of a structured learning experience the evidence collected must
relate to a number of performances assessed at different points in time and separated by further
learning and practice with a decision of competence only taken at the point when the assessor has
complete confidence in the persons competence
All assessment that is part of a structured learning experience must include a combination of
direct, indirect and supplementary evidence
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Where assessment is for the purpose of recognition (RCC/RPL), the evidence provided will need
to be current and show that it represents competency demonstrated over a period of time
Assessment can be through simulated project-based activity and must include evidence relating to
each of the elements in this unit.
In all cases where practical assessment is used it will be combined with targeted questioning to
assess the underpinning knowledge. Questioning will be undertaken in such a manner as is
appropriate to the language and literacy levels of the candidate and any cultural issues that may affect
responses to the questions, and will reflect the requirements of the competency and the work being
performed.
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CPPDSM4008A Part 2
UNIT 16 PREPARING AND DELIVERING RESIDENTIAL CONTRACTS

[16.1] Sequence of signing documents by buyer
It is important for an agent to clearly identify to buyers what documents are required to be
signed and also in the order that they should be signed.
The buyer must sign the PO Form 8 Disclosure, Body Corporate Section 206 Disclosure
Statement (if a Community Titles Scheme sale) and any other disclosures first.
[16.2] Directing the buyers attention
It is recommended agents must direct the buyers attention to the cooling off period provision,
Section 206 Disclosure Statement (if a unit sale) and proposed relevant contract at least
once. This would usually be done the first time the documents are presented to the buyer.
This can be done verbally or in writing although it is strongly recommended that this be done
in writing to ensure that there is a record of the direction to the buyer.
A buyer will have a right of termination (exercisable within 90 days of the contract or by the
settlement date, whichever is the earlier) if the buyer is not given a clear statement directing
their attention to the above documents at the time of giving the proposed relevant contract to
the buyer.
[16.3] Sending documents to the buyer by email or fax

In accordance with the Electronics Transactions Act 2001 (Queensland) it is a statutory
requirement to have the consent of a buyer and seller before sending any documentation by
electronic means. The agent should ensure they obtain written consent of all parties that they
agree to the use of facsimile or email as a method of communication for the transaction.
A best practice document Consent to receive electronic communication is available through
Realworks for this purpose.
UNIT 17 TERMS OF CONTRACT
Before selling a property, the seller must be able to prove a good and sound title to the
prospective buyer and is required to produce a title before the sale of the property. This
means the seller must prove registered ownership of the property for sale. When a property
is offered for sale in the Torrens System, it is a simple matter of showing the prospective
buyer the certificate of title. This document can be checked by obtaining a copy from the
Tittles Office for a fee. Agents should ensure the persons recorded on the title are the
persons with whom they are dealing.
Whenever a prospective buyer has a query concerning proof of title, the agent should refer to
the title, and advise the buyer that legal advice should be obtained from a qualified lawyer.
The certificate of title (title deed) is a document that provides proof of ownership. The
certificate of title today is simply a computerised transaction notice. It is always a good idea
to sight a copy of the title search as well as undertake a title search to gather as much
information as possible about a property.
The certificate of title number, always located on the top right hand side of the title document,
is essential for the agent to use when completing all listing and selling documentation. The
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title deed is an example of a Transaction Notification. This is the official computerised

document that has replaced the old deeds.
[17.1] Requisitions on title
As a result of changes in conveyancing practice, the practice of requiring requisitions on title,
pursuant to section 156 of the Land Title Act 1994 (Queensland) in the Queensland
conveyancing process is now uncommon.
The practice of requisitions on title was replaced by sellers warranties as to title in the
contract document. This means that a seller and their agent must be particularly vigilant
when preparing contracts to ensure that the information contained within the contract is
accurate at the date of preparation. It is essential that an agent conducts a title search prior
to the preparation of the contract Remember your obligations as per sections 19 and 20 of
the Property Occupations Regulation 2014.
Property Occupations Regulation 2014
Part 5 Conduct standards
Section 19 Finding out or verifying property ownership and description
(1) Before auctioning property, an auctioneer appointed to sell the property must take reasonable steps to
find out or verify the ownership of the property and property description.
(2) Before listing property for sale, lease or exchange, a real estate agent or real estate salesperson must
take reasonable steps to find out or verify the ownership of the property and property description.
Property Occupations Regulation 2014
Part 5 Conduct standards
Section 20 Finding out or verifying facts material to the sale of property
(1) An auctioneer appointed to sell property must take reasonable steps to find out or verify the facts
material to the sale that a prudent auctioneer would have found out or verified to avoid error,
omission, exaggeration or misrepresentation.
(2) The steps must be taken before the auctioneer auctions the property and afterwards as the occasion
arises.
(3) A real estate agent appointed to sell, purchase, exchange or lease property must take reasonable steps
to find out or verify the facts material to the sale, purchase, exchange or lease that a prudent real estate
agent would have found out or verified to avoid error, omission, exaggeration or misrepresentation.
(4) The steps mentioned in subsection (3) must be taken before the agent lists the property and afterwards
as the occasion arises.
There is a requirement on the seller and the agent to ensure that all relevant matters that
may adversely affect the property are revealed either under Encumbrances or in the special
conditions of a contract.
If the defect, or doubt, not disclosed by the contract is one which is known, or ought to have
been known, to the seller at the date of the contract, the buyer shall in addition be entitled to
recover the purchasers expenses of investigating the title.
[17.2] Acceptance of title
In some other states, the acceptance of the sellers title by the buyer is an important step in
the conveyancing process. By accepting title, the buyer waives the right to objections in
relation to any defects in the title. This situation differs in Queensland, where acceptance of
title only takes place at settlement. Queensland does not use the system of exchanging
contracts, thus giving a buyer no opportunity to object to title prior to entering the contract.
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The contract documents signed by the buyer and submitted to the seller is an offer to
purchase. Upon acceptance of the offer by the seller a binding contract is formed, which is
enforceable after the cooling-period ceases.
The legal obligations upon the seller to make disclosure of matters affecting the property
causes agents to exercise caution and not become party to any false or incomplete
disclosures. It is the sellers duty to make good title at settlement.
[17.3] Defects in title
The concept of defects in title comes from the historical process of proving title through a
series of transactions, as in Old System Title. In the Torrens System where title is proved by
Registration of Title, defects in title will prevent the seller passing a good title to the buyer.
These defects include any lack of proper registration of a seller as the owner of the land, or
some forms of encumbrance, particularly where the seller cannot cause them to be removed,
such as a caveat.
When searching the title the agent must be vigilant for encumbrances that may cause a
buyer to reject the property. These encumbrances could be easements, caveats, leases,
covenants, or local authority orders; such as a demolition order, or vegetation protection
order, that the buyer inherits at settlement.
If these defects are not disclosed, then it is assumed that the buyer is acquiring a title free
from encumbrance.
Sellers of property have certain duties under a contract of sale to disclose material defects in
the property to the buyer. Clause 7 of the REIQ Contract for Houses and Land (studied later
in this unit) - Matters Affecting the Property specify the sellers warranties with respect to the
property under contract; namely:
Clause 7.1 Title

Clause 7.2 Encumbrances
Clause 7.3 Requisitions
Clause 7.4 Sellers Warranties
Clause 7.5 Survey and Mistake
Clause 7.6 Requirements of Authorities
Clause 7.7 Property Adversely Affected
Clause 7.8 Dividing Fences
These defects may be:
Patent defects, which are those that are obvious and open to scrutiny on inspection of
the property, e.g. power lines running over the property or a driveway to rear block.
Latent defects, which are those that the buyer cannot normally discover upon an
inspection of the property, for example, an underground drainage easement. Upon
discovery of certain defects, a buyer may terminate the contract. (Refer to Clause 7.7 Property Adversely Affected in the Contract for Houses and Land for further examples).
Unlawful use. If at the time a contract is signed the present use is not lawful and that
situation has not been disclosed, the buyer may terminate by notice to the seller up
until TWO business days prior to settlement. If the agent discloses the correct present
use in the contract of sale this will be sufficient disclosure.
However, if the buyer does not give notice or objection to that defect the buyer is treated as
having accepted the property with all its problems.
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[17.4] Terms of the contract

The terms of the contract are the contents which form the Standard Conditions of the sale.
[17.4.1] Improvements [Clause 1.1 (2) (q)]
All structures on the land and other permanently fixed items are included in the sale, such as
stoves, hot water systems, fixed carpets, curtains, blinds and their fittings, clothes lines,
satellite dishes, television antennae and in ground plants. Improvements do not include the
reserved items named in the Reference Schedule under excluded fixtures.
[17.4.2] Investment of deposit (Clause 2.3)

Either the seller or the buyer can instruct the deposit holder to invest the deposit. However,
Section 17 of the Agents Financial Administration Act 2014 (AFAA) prevents a real estate
agent who is the deposit holder from investing the deposit unless the settlement date is more
than 60 days after the contract date. The deposit can be invested with a bank, building
society or credit union, in a special investment account.
[17.4.3] Interest on deposit (Clause 2.4)
If the contract settles, the seller gets the interest. If the contract is terminated without default
by the buyer, the buyer receives the interest. If the contract is terminated because the buyer
defaults, the seller gets the interest. Sometimes this clause can be varied by a special
condition so that interest can be apportioned by agreement between the parties.
[17.4.4] Land tax [Clause 2.6 (4)]
If the seller is a company, delete on line three in this clause one natural person. Land tax is
an annual tax paid by the owners of real estate who are considered to have a beneficial
ownership of land.
That is, they are deriving some indirect benefit from the ownership other than a principal
place of residence. The rate payable is determined by the assessed valuation.
[18.4.5] Requirements of authorities [Clause 7.6 (2)]

Where an authority, such as a local council, requires work to be done on the property, the
seller must complete the work if the notice is issued before the contract date. Alternatively, it
becomes the buyers responsibility if the notice is issued after the contract date. The buyer
may direct the seller not to carry out the work if the notice is issued after the contract date
provided the buyer indemnifies the seller against any liability for not carrying out the work.
The buyer may terminate the contract if, at the date of the contract there is an outstanding
notice under the Building Act 1975. [Clause 7.6 (3)] the seller warrants [Clause 7.4 (2)] that
there is no such notice.
Although the contract does not refer to this issue, the Building Act obliges sellers to notify
buyers where building work has been carried out by unlicensed builders (e.g. owner builder)
within the six (6) years prior to contract. If this is not done, the seller may be liable.
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[17.4.6] Property adversely affected (Clause 7.7)

The buyer may terminate the contract if, at the date of the contract:
The present use was unlawful under the town plan
The land was affected by a road or railway widening proposal
Access or any service passes unlawfully through other land
A resumption notice has been issued
The land is affected by the provisions of the Queensland Heritage Act 1992
(Queensland) or the World Heritage List
The property is declared acquisition land under the Queensland Reconstruction Authority
Act 2011.
There is a change against the Land under s104 of Foreign Acquisitions and Takeovers
Act 1975
If the buyer wishes to terminate the contract they must give notice in writing to the seller
given on or before the settlement date.
[17.4.7] Insurance (Clause 8.1)
The property is at the buyer's risk from 5 pm on the first business day after the contract date.
The buyer must insure the property or at least take out a cover note on the first business day
after signing the contract. Along with all clauses, the agent should point this contractual term
out clearly to the buyer. Some agents have relationships with brokers of insurance which
they can guide the buyer to. However, if the agent receives any benefit from this referral, it
must be disclosed to the buyer on the Property occupations Form 8 Disclosure to Buyer.
[17.4.8] Access (Clause 8.2)
After reasonable notice to the seller, the buyer and their consultants may enter the property
between the date of contract and the date of settlement, namely:
Once to read any meter
For building and pest inspections
Once to inspect the property before settlement
Once to value the property before settlement
[17.4.9] Foreign ownership (Clause 10.2)

The Foreign Acquisitions and Takeovers Act 1975 (Commonwealth) is the principal means
by which the Commonwealth records regulate foreign investment in Australia. It is
administered by the treasurer on the advice of the Foreign Investment Review Board (FIRB).
Some foreign buyers will need FIRB approval before entering into a contract. They should
obtain legal advice before signing the contract.
Basically, if a foreign person wants to acquire an interest in Australian urban land, that
person must obtain the treasurers approval via FIRB. A notice setting out the proposal to
acquire such an interest has to be sent to FIRB by the buyer. FIRB then examines the
proposal and decides if the proposed acquisition would be contrary to the national interest.
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The REIQ Contract for the sale of residential land contains a clause dealing with foreign
buyers, which provides that the buyer warrants that either:
The Buyers purchase of the Property is not a notifiable action; or
The Buyer has received a no objection notification, under the Foreign Acquisitions and
Takeovers Act 1975.
This clause has very significant consequences for a buyer who needs FIRB approval
because the buyer warrants that the buyer already has consent to purchase property in
Australia. If there is any doubt as to whether or not FIRB approval is required, the buyer
should be advised to obtain legal advice. Solicitors acting for a foreign buyer should modify
the REIQ contract by inserting a special condition into the contract, making it conditional
upon FIRB approval being obtained by the buyer.
While guidelines are issued by the FIRB as to who is or who is not entitled to approval, care
should be taken when making any statement to foreign potential buyers.
[17.5] Disclosure
To ensure that the contract settles, the agent should conduct all necessary searches prior to
the signing of the contract and disclose all matters affecting the property to the buyer. The
main areas for caution are with respect to:
Clear title
Building matters
The affairs of a body corporate
Once a relevant matter has been disclosed in writing on the contract of sale, the seller has
performed their duty and the buyer accepts that they are contracting with full disclosure of
the relevant facts. Contracts formed under these circumstances are binding and therefore
have a high chance of completion.

Question 1: What are some of the warranties offered to a buyer in the contract of sale?
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
Question 2: Identify at least two potential defects in title or property
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
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Question 3: You are listing a property for sale that is affected by the Queensland Heritage
Act 1992 (Queensland). How would you advise the client to handle this situation regarding
the preparation of a contract of sale?
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
Question 4: You have successfully negotiated a contract for the sale of a house. The
deposit is $50,000. The contract settles in 30 days. The buyer and seller have requested that
the deposit be invested in a special trust account so that they can earn interest. Can you do
this? Please explain your answer.
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
Question 5: You are selling a home unit to an investor who is a citizen of Singapore. Can
you sign them up on an unconditional contract? Please explain your answer.
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
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PART 6: COMPLETION GUIDE FOR CONTRACTS

UNIT 18 THE REIQ CONTRACT FOR HOUSES AND RESIDENTIAL LAND
This unit is a step-by-step guide on how to complete the REIQ Contract for Houses and
Residential Land.
[18.1] Contract format
The contract can be accessed on computer through REIQ Realworks program or purchased
as a stationery item from the REIQ shop.
Pages 1 to 5 are known as the Reference Schedule. Space has also been allocated on page
5 for Special Conditions. The buyer and seller sign at the bottom of page 5 and initial every
page on the bottom right hand corner marked initial. The page numbers are footers in each
page.
The contract contains a separate schedule, referred to as Terms of Contract, which are the
implied terms and conditions of the contract, which are not commonly negotiated and form a
separate part of the contract. The buyer and seller must also initial the Terms and Conditions
at the bottom of each page.
[18.2] How to fill out the reference schedule

The Reference Schedule to the contract is the most important section as it specifies all
details and the negotiated elements of the contract.
The agent has a legal obligation to ensure that the information in the Reference Schedule is
correct. Care at this stage means protection for all parties. The REIQ recommends that
agents prepare a contract at the time of listing and to liaise closely with the sellers solicitor to
ensure that all essential information and disclosures are inserted and are correct.
The agent must, at the time of listing a clients property for sale or lease and at all later times,
encourage the client to disclose to the agent all relevant facts about the property.
When preparing contracts the agent is required to conduct searches to verify:
Ownership details
The real property description
All relevant material facts regarding the property
A relevant material fact is any registered dealing over the property, including an
environmental protection order, a listing on the contaminated site register, a local authority
order, or encumbrances over the title.
The seller should inform the agent of any matter that is pertinent to a buyer that affects the
property. Any of the above would be a pertinent matter. Other matters may include issues
such as known termite infestation, major structural problems and adverse matters, such as
proposed resumptions and infringements over the land.
The agent should conduct a title search immediately before preparing a contract to ensure
the agent has time to attend to emerging problems.
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[18.3] A guide for completing the Contract for Houses and Land
Following is a guide to completing the REIQ Houses and Land Contract. At the end of this
theoretical study, you will review an example contract and also complete a case study to
complete the learning.
[18.3.1] Contract date
A contract is not dated until all negotiations are completed. The date is the final addition to
the contract. After the offer and acceptance occurs, and all documents signed and initialled
by all parties the contract is then dated by the agent. When the agent is preparing the
contract document for signing, the date section of the form must remain empty.
[18.3.2] Agent
The selling agent's business name, address, telephone, facsimile and email details are be
inserted, together with the agents ABN and licence number.
Note:
This section is the name of the business, and not the individual sales representatives details
(e.g. Top Real Estate Pty Ltd trading as ABC Realty, 30 Bright St, Riverside).
If the agent is selling in conjunction with another agent, both agencies names should be on
the contract. There is no requirement to indicate the commission split as this is a separate
agreement between the agents involved.
[18.3.3] Parties
Full details of the seller and buyer and their respective solicitors are required to clearly
identify all parties and provide addresses for the service of notices.
It is important that the agent cautions the buyers prior to preparing the documents that they
give their exact names in which the property is to be registered. If the property is for
investment the buyers should seek advice from their accountant. Changing names on the
contract prior to settlement may incur extra stamp duty.
An address for both parties to ensure prompt service of notices is necessary as there will be
a number of communications during the conveyance period. The agent should ask both
parties for their solicitors details including the actual solicitor who will be representing them.
This persons name should be entered in the section ref.
An example of correct information gathered is:
Seller:
Allan John SEYLTERS and Mary Ellen SEYLTERS

21 High Drive, MOUNTAINVIEW QLD 4987
T 3278 0034
F 3278 0012
Solicitor:
Smith and Co., 10 Court Ave, CITY. QLD 4000

T 3356 9876
F 3356 9871 Ref: John Smith
Email: johnsmith@smithco.com.au
Buyer:
Dean Todd BLYTHESS and Tracy Linda BOYCE

145 Green Plains Road, COUNTRYSIDE QLD 4020
T 07 4445 8796
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Solicitor:
A. Jones, 25 Title Street, COUNTRYSIDE QLD 4020

T 07 4445 0246 F 07 4445 0255 Ref: Mary Jones
Email: maryjones@ajones.net.au
[18.3.4] Property
Land: The agent should do a title search before completing the description of the land
Address: If possible a street number should accompany the address or, in the absence
of a street number, a detailed plan indicating the location of the property should be
attached
Description: The Real Property Description (RPD) is essential. The description includes
a lot number and registered plan number
Considerable complications can arise during the conveyancing process if the description is
not accurately stated. If the agent is dealing with selling allotments off-the-plan which has not
yet been registered, it is best practice to consult with the sellers solicitor to obtain the
accurate description of the subject property.
There is an option in the contract for vacant/built-on and freehold/leasehold. Delete or state
whichever is not applicable, respectively.
[18.3.5] Title reference
This refers to the subject propertys title reference number which is at the top right of the title
search, or the registered number of the Crown Lease, if applicable.
[18.3.6] Land area

The contract states more or less in this instance, but the agent must not be complacent
when filling out land area. If the agent does not know the exact area of the block it is best to
leave it out until this fact can be verified. Agents have been successfully sued in situations
where the incorrect area was shown on the contract.
Do not, under any circumstances, attempt to alter the area from the way it appears on the
Registered Plan; such as in the conversion from imperial to metric measurement. The agent
should consult the sellers solicitor if in doubt and be guided by the sellers solicitor. Do not
take on this responsibility.
An example of search details:
Address:
Description:
Title Reference
Area:
Land sold as
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20 Ocean Rise, BEACHMERE QLD 4444.

Lot 66 on RP 2468, South Brisbane
4281964
809 m
Freehold
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[18.3.7] Present use

In this section of the contract, the agent should insert a brief description of the current use
made of the property and be guided by the agents ownership search details with respect to
zoning; such as:
If the property is a house or residential land, present use would be described as

residential
If the property is a factory it could be described as heavy industrial; and a shop as

commercial
The agent should be aware that in some situations a property owner may be using the
property contrary to zoning restrictions as a place of business, and therefore the agent may
assume the property has commercial zoning. If at the contract date the present use entered
on the contract is not lawful then the buyer may terminate the contract. The agent must
inform the buyer if the present use of the property is unlawful prior to entering into a contract
and by entering the correct present use in the contract the seller and the agent have made
the correct disclosure.
[18.3.8] Local government
Insert the name of the local government council where the land is situated, such as: Brisbane
City Council, Woocoo Shire Council.
[18.3.9] Excluded fixtures

Excluded features are items which the seller is excluding from the sale; such as a built-in
bookshelf, built-in dishwasher, air conditioner, pool equipment, barbecue burners, garden
shed or any other fixed items which would normally be included in the sale but in this
instance the seller is excluding them as they wish to keep them.
It is best practice for the agent to refer to page 6 of the contract, point 1 of Definitions (q) on
Improvements and read the standard Terms of Contract regarding those improvements that
are deemed a part of the sale.
[18.3.10] Included chattels

Chattels are objects that a seller is entitled to remove from the property but have been
included in the sale. Examples are such items as a ride-on mower, furniture, pool-cleaning
equipment, pool umbrella, washing machine. The agent should detail these as included
chattels in the contract.
[18.4] Matters affecting property
As soon as the agent lists a property the contract should be prepared, giving ample time to
check it thoroughly. It is critical that the title search is done prior to preparing the contract in
order that any encumbrances which will not be released on or before settlement can be
noted here on the contract.
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[18.5] Price
[18.5.1] Deposit holder
Insert the name of the person or company who is the deposit holder. Usually this will be the
agent but can also be either the sellers or buyers solicitors. It is important to note that any
deposit must be banked into a Trust Account.
If the contract is more than 60 days in duration, the parties may elect to have the deposit
invested in a special trust account. All parties to the contract must agree to invest the deposit
and a special clause should be entered into the contract specifying in whose name the
account will be held and to whom the interest will be paid at the time of settlement. The
special trust account must be opened in the name of the agency as trustee for the parties to
the contract, as per the requirements of the POA.
[18.5.2] Purchase price
Insert numbers only, it is not necessary to use words. It is common practice to negotiate on
the contract and there should be enough space for counter offers and initialling.
[18.5.3] Deposit
The deposit is sometimes paid in two instalments - an initial holding deposit and then a
balance of deposit at a later date.
However, if the deposit is payable in one payment, it would be stated thus:
Deposit:
$35,000 payable when the buyer signs this contract.
Where the deposit is payable in two instalments, it would be recorded as:

Deposit:
$ 5,000 payable when the buyer signs this contract.

$30,000 payable on a specific date or event.
Agents should endeavour to make sure that the first instalment of the deposit is sufficient to
cover the termination penalty (should a buyer use the cooling off period to terminate the
contract). The termination penalty is calculated at 0.25% of the purchase price. It should be
noted that it is not a legal requirement for a buyer to pay a deposit however it is strongly
recommended.
[18.5.4] Default interest rate
Leave this section of the contract blank because when there is no figure stated, the rate
published by the Queensland Law Society will apply.
This rate is usually quite high and is calculated daily. Clause 9.9 specifies the interest rate
payable by the buyer to the seller if any money under the contract is not paid by the due
date.
[18.5.5] Finance
If the contract is subject to finance all 3 sections of finance in the Reference Schedule must
be completed, otherwise the contract is not subject to finance (as per the instructions noted
on the contract).
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A buyer should not be restricted in being able to shop around for suitable finance if a lender
declines their application or they decide to sign up with another financial institution. It is
important that if finance is not approved, the onus is upon the buyer to prove that an
application was lodged with the institution nominated on the contract. If the finance clause is
used as it stands, it should be fully completed.
Refer to the contract Clause 3 on page 8, Finance, and read the clause that applies to this
provision. If the contract is a cash sale, then this section is left blank.
[18.5.6] Finance amount
The finance amount is the amount that the buyer needs to borrow to complete the purchase.
Insert numbers only. There is no need for words. If no finance is being obtained, do not
delete the clause; just leave it blank.
[18.5.7] Financier
Identify the proposed financier, bank, building society, and branch office, if known.
unknown, it is best practice to insert wording such as A FINANCIAL INSTITUTION.
If
[18.5.8] Finance date

The finance date is the date by which the buyer must notify the seller that the application for
finance has been either approved or declined. The agent should ensure that this is a
business day. If the buyer does not notify the seller either way by 5.00pm on this date, the
seller has the option to terminate the contract or grant an extension of time to the buyer if the
buyer requests an extension. See clause 3 of the contract
It is best practice to insert an actual date for approval; such as 16 March 2015, rather than a
phrase such as 21 days from the date hereof. This reduces ambiguity of when a notice
should be given, especially if a party is working from an undated contract.
[18.6] Buyers inspection
[18.6.1] Building inspection and pest control inspection
This clause is at the option of the buyer and is commonly exercised. If the contract is subject
to a building and/or pest inspection, the inspection date must be completed for either of these
conditions to apply.
This will automatically mean that Clause 4 (Terms of Contract) relating to building inspection
and pest inspection reports will apply. If this section is not completed, the contract will not be
subject to the buyer obtaining a satisfactory building or pest inspection report.
The buyer must notify the seller by 5pm on the inspection date as to whether they have
received a satisfactory building and/or pest report and they wish to proceed with the contract
or terminate. If a buyer has not done this by 5pm on the nominated inspection date, the
seller has the right to terminate the contract or, if requested by the buyer, grant an extension.
All contract notification must be in writing.
The building inspector nominated by the buyer must be an appropriately licensed inspector,
architect or engineer. The report must be in writing and the seller reserves the right to inspect
the report if it the buyer claims that it is not satisfactory and terminates the contract. If the
buyer or seller requests a different building or pest inspection clause to be inserted under
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special conditions on the contract, then this standard special condition should not be
activated and the space should be left blank.
In some instances, buyers may elect to either have separate inspectors for building or pest
inspections, or only choose one of the inspections. It is however, common for a buyer to elect
to have both inspections done.
[18.6.1] Title encumbrances

This section requires the agent to indicate whether the Property is to be sold subject to any
Encumbrances. The agent is to tick either no or yes. Where yes is ticked, the
Encumbrances are to be listed in the relevant area.
Clause 7.2 in the contract states The property is sold free of all Encumbrances other than
the Title Encumbrances and Tenancies. The sellers mortgage will be released at settlement
therefore it is not to be entered on the contract as an encumbrance.
Property is defined in Clause 1.1(2)(dd), as the land, the improvements on it and the included
chattels, therefore any encumbrances on the improvements or chattels such as bills of sale
or liens must be removed before settlement.
Most Queensland titles, the section marked under easements, the words Rights and
interests reserved to the Crown by Deed of Grant No. Do not enter this on the contract as it
is not an easement. This term means that the Queensland Government has the right to
acquire, by purchasing land that the Government needs such as land required needed to
build a new highway or rail line.
When completing this section it is important to make accurate disclosure. The old practice of
writing none known or title will reveal is unacceptable. There is a legal expectation that the
agent will search a title prior to marketing a property in order to avoid giving false and
misleading information to prospective buyers regarding encumbrances on the property.
If there are encumbrances on the title such as easements, covenants, caveats, council
registrations, or heritage listing, etc., and these are not revealed to the buyer at the time of
signing the contract the buyer has the right to terminate the contract at any time up until two
business days prior to settlement.
[18.6.2] Tenancies
This part is optional, and is only completed if the property is sold with a tenant in place who
will remain after settlement. The buyer in this case becomes the lessor after settlement. This
is common with an investment property. Include details of any tenancy, as in this example:
Tenants name:
Term and Option:
Starting Date of Term:
Rent:
Bond:
John David SMITH

1 year
10 January 2013
$500 per week
$2000 (RTA receipt number 4428)
[18.6.3] Vacant possession

If the property is being sold as vacant possession then the tenant must vacate the property
by settlement. If vacant possession is required, the tenancy clause must be left blank. It is
essential that the agent ensures that the tenant is given adequate notice to vacate the
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property in accordance with the Residential Tenancies and Rooming Accommodation Act
(RTRA Act).
When determining the date of settlement of a tenanted property for which vacant possession
is required, the notice to leave should not be issued until other contract conditions, where
practicable, have been fulfilled.
There are two types of tenancy agreements as per the RTRA Act - fixed term and periodic.
A fixed term tenancy means that the tenancy is for a fixed time frame, meaning that there is a
definite start date and a definite end date. If the end date of a fixed term agreement has
passed and there is no information to say the lessor or tenant has given notice to end the
tenancy, the tenancy automatically becomes a periodic tenancy; it doesnt just end.
A periodic tenancy is any tenancy arrangement where there is no formal fixed term lease in
place or where the fixed term has expired.
A tenant on a fixed term tenancy must be given two months written notice for the tenancy to
end without grounds, or for no reason. The tenancy cannot end before the end date of the
tenancy (unless all parties agree). If a buyer buys a property with a tenant on a fixed term,
the buyer inherits the tenant and becomes the lessor (unless ALL parties agree otherwise).
Four weeks notice can be issued in the event of a sale if the buyer wished for vacant
possession and the existing tenancy is periodic.
Case study Contract with periodic tenancy vacant possession required
You receive an offer for a property that is listed for sale and is also currently rented with
a periodic tenancy in place. Best practice is to ensure that all the buyers conditions
are met before the tenants are given notice to vacate.
In this situation a tenant can be given 4 weeks notice to vacate. Also factor in 2 days
for postage (if not hand delivered) and a further 2 days for the lessor or property
manager to ensure the property is vacant, inspections have been done and the
property is left in the same condition that it was when the tenant moved in, fair wear
and tear excepted.
In total, it is best practice to allow a minimum of 32 days once all the contract
conditions have been met before settlement occurs.
[18.6.4] Managing agent
If the property is managed by a real estate or resident letting agent, insert the required
details.
[18.7] Pool safety
It is a requirement that a seller of a property with a regulated pool that is a non-shared pool
(typically a house) provides to the buyer, prior to settlement, either a copy of a valid Pool
Safety Certificate. If a certificate cannot be provided, a notice in the approved form, a Form
36, must be given to the buyer prior to the contract being entered into, stating to the buyer
that there will not be a pool safety certificate in place prior to settlement. This form must also
be given to the Pool Safety Council.
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Under the REIQ Contract for Houses and Residential Land, if the later of the two options is
provided to the buyer, the buyer will inherit the obligation to ensure that there is a valid pool
safety certificate in place for the regulated pool within 90 days of ownership at their expense.
If there is not a valid pool safety certificate in place at the time of the contract being formed
between the seller and the buyer, there is provision that the buyer may arrange for a pool
safety inspection to be conducted within a nominated time frame (under similar terms to a
building or pest inspection). If the inspection results in a pool safety certificate being issued
by a suitably qualified inspector, there is no further action required by either party.
If the inspection result in a notice being issued for non-compliance, the buyer has the right to
terminate the contract by notice in writing to the seller or to waive the condition and the
contract proceeds, as per the provisions of Clause 4.2 of the terms and conditions (refer to
Clause 4.2 and also the reference schedule of the contract inserted later in this unit).
Agents should be mindful that they inform all parties involved that a pool safety inspection
can only be carried out by a suitably qualified pool safety inspector. Checking contractors
qualifications can be done so through the pool register located on the Department of Housing
and Public Works website www.hpw.qld.gov.au
Any agent that is employing the services of a pool safety inspector on behalf of a client
should ensure that they have a completed and signed contractor appointment form from the
inspector and also check the pool register via www.hpw.qld.gov.au before engaging any
services.
It is prudent for an agent to ensure that the issue of a pool safety certificate is discussed with
their client at listing stage and throughout the marketing of a property. Having a pool safety
certificate in place at the time of a contract being formed will minimise any possible
negotiation issues between the seller and buyer.
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[18.7.2] Electrical safety switches

All residential dwellings sold in Queensland must include a special condition in the Contract
stating whether an electrical safety switch has been installed on all general purpose circuits.
The special condition provides for the seller to disclose whether safety switches are installed
or not. If no safety switch is installed, the buyer shall inherit the responsibility to have a safety
switch installed within three months from the date of settlement.
It is the sellers responsibility to notify the electrical authority of the existence or nonexistence of a safety switch at the time of settlement. The agent should not tick either of the
boxes without the sellers instructions. Refer to the warning statement in the Electrical Safety
Switch section of the contract.
Note: Every rental property in Queensland must have had a safety switch installed in the
property as of March 1st 2008.
[18.7.3] Smoke alarms
Any home built from July 1 1997, or any home that has had renovation to more than 50% of
the total floor space has to have a hard wired smoke alarm installed.
Every residential dwelling (houses and units) in Queensland must have at least the minimum
specified number of smoke alarms installed in the dwelling. This is a requirement as per the
Fire and Emergency Services Act 1990. This requirement applies to all properties, not just
the rental sector.
The smoke alarm must be installed on, or near, the ceiling on every storey of the building:
Between any areas containing bedrooms and the rest of the house, e.g. hallways
On a storey not containing bedrooms on the most likely evacuation route from that storey
The law requires a minimum standard of alarm to be installed in the property. The minimum
installation requirement is nine volt battery operated alarms. The number of alarms required
to be installed is determined by the levels of the home and where the bedrooms are situated.
Sellers are required to disclose to buyers on sales contracts whether there is a smoke alarm
installed.
The seller of residential land is required to provide the Chief Executive of the Queensland
Land Registry with a written notice stating whether smoke alarms are installed in the property
at the date of possession by the buyer; and if the seller has provided the buyer with written
notice of whether compliant smoke alarms are installed in the property as at the date of
possession.
The requirement will be met through the Queensland Land Registry documentation Form 24
Property Transfer Information, which is completed during conveyancing.
At the time of listing the agent should ask the seller if there are smoke alarms installed in the
property. If the seller does not have the required smoke alarms, the agent should
recommend, in writing, to install the required number of alarms prior to selling the property.
This will not only assist the seller in complying with the law, but also will alleviate any
potential conflict between the buyer and seller at the time of contract due to non-compliance
with the fire legislation.
The agent should tick whether or not compliant smoke alarms are installed. This provision is
not the same as safety switches which allows for the buyer to inherit the responsibility of
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installation; it is mandatory that sellers have compliant alarms installed at the time of selling
their property.
[18.7.3] Neighbour Disputes

The Neighbourhood Disputes (Dividing Fences and Trees) Act 2011 contains specific
provisions relating to the sale of land affected by an application or order in relation to a tree.
Section 83 of the NDFT act requires a person who is selling land affected by an application
or order relating to a tree, to give a buyer a copy of the application or order before the buyer
enters into a contract of sale for the land.
The agent should tick whether or not the Land is affected by any application to, or an order
made by, QCAT in relation to a tree on the Land. If there is such an application or order, the
agent must ensure a copy of that document has been to the buyer prior to the buyer signing
the contract.
[18.8] Settlement date
The agent should insert the date for settlement and ensure that it is a business day. The
settlement date should be compatible with other conditions of sale, such as notices to
tenants and any prior settlement arrangements.
It is important to insert an actual date rather than a calculation term, such as 30 days from
the date hereof. This adds certainty to the contract and ensures that all parties are clear
about their obligations to settle at a certain time: for example 2 April 2015.
[18.8.1] Place for settlement

The agent should insert the city or town where settlement is to occur, which is commonly
where the sellers mortgage is held, or where their solicitor or bank is situated, such as,
Brisbane.
[18.9] Signing
Most often, it is the buyer who makes the offer by signing a contract document and delivers it
to the seller. When a seller alters the terms of a buyers offer, initials the changes and returns
the contract to the buyer, the seller is making the counter-offer.
When the seller accepts the buyers offer a binding contract is created. In Queensland there
is no exchange of contracts, as the one contract document is required. The contract
documents signed by the buyer are referred to as the offer; and the buyer must be prepared
to proceed if the offer is accepted by the seller which is signified by the seller signing the
contract. This procedure is different to other states, and buyers need to be made aware of
the significance of signing a contract in Queensland.
The contract includes a warning statement relating to the sellers cooling off rights. The
warning statement is as follows:
The contract may be subject to a 5 business day statutory cooling-off period. A
termination penalty of 0.25% of the purchase price applies if the buyer terminates the
contract during the statutory cooling-off period. It is recommended the buyer obtain
an independent property valuation and independent legal advice about the contract
and his or her cooling-off rights, before signing.
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The deposit holder is also required to sign the contract, acknowledging their responsibilities
in relation to the deposit.
[18.9.1] Witness
The buyer and seller sign on page 5 in the presence of a witness. The agent usually
witnesses the signatures if the signing is done in person; however, if the documents are
being signed elsewhere, the agent should advise the buyer or seller to have the signatures
witnessed.
[18.9.2] Initialling
It is essential that all parties to the sale initial each page, and all alterations or changes to the
contract. The agent cannot initial a contract on behalf of a party to the contract unless
authorised in writing to do so and this practice is not recommended.
The deposit stakeholder must sign on page 5 when the whole deposit or the first instalment
of the deposit is received from the buyer. The principal licensee or licensee in charge should
sign as deposit stakeholder; and not the agent.
[18.10] Contract special conditions

Some common special conditions drafted concerning residential property sales are:
Subject to the sale of the buyers property
Subject to the completion of the sale of the buyers property
Subject to the transmission of title by death
Subject to the registration of the registered plan
Subject to the completion of building works
Most agencies have precedents of common special conditions provided by their legal
advisors. If a buyer or seller requires an unusual special condition they should consult with
their solicitors regarding the wording of the clause and have it forwarded to the agent. Agents
are not solicitors; and should not attempt to draft special conditions. It is essential that the
agent liaises with the respective partys solicitor.
REIQ best practice recommends the agent undertake a title search at the time of listing the
property. The agent should undertake another title search before completing the contract to
ensure any change in title is identified and placed in the contract.
Once the contract is signed by all parties, the agent should disburse the copies immediately.
The agent should not keep possession of the contracts pending finance or special conditions
etc. This action must void the sale. Correctly providing the buyer or the buyers
representative with the contract will commence the provisions of the cooling-off period.
The following important dates should be noted in the agents diary for follow-up:
Cooling-off period
Finance approval
Payment of deposit instalments
Building and pest inspection
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Other special conditions
Settlement
The agent must alert the seller that any problems subject to a local authority notice, or a
notice under the Building Act, could entitle the buyer to terminate the contract. The seller
should also be advised that all keys and remote controls belonging to the property must be
located and ready for settlement.
[18.11] Dates
[18.11.1] Dates where possible should always be actual dates.
Phrases similar to 30 days from the date hereof or 30 days from contract date should not
be used, as some parties to a contract calculate dates differently, causing uncertainty in the
notification deadlines. For example, dates under the POA include the date of document as
the day one. This conflicts with common law, where the calculation of dates does not include
the date of document as the day one.
It is very difficult for third parties to a contract, especially financiers, to perform in accordance
with the contracts Special Conditions when they are referring to a copy of an undated
contract with the finance clause stating that finance notification is due 21 days from the date
hereof. In this case, 21 days from what date? Best practice to ensure certainty is to insert
an actual date.
[18.11.2] Dates for finance (should be a business day)

A reasonable length of time should be allowed. If the time is too short, the buyer may need to
request an extension, which may give both parties to the contract an opportunity to withdraw.
The time required for finance is dependent on the merits of each individual application and
the type of institution involved. As a guide, it is reasonable to expect a straightforward
application to be processed by a bank, building society or credit union, in 21 to 28 days.
However some mortgage insurance companies may demand that the financier allow at least
35 to 42 days for processing some residential finance applications.
Prior to preparing the offer, the agent should ask the buyer to check with their financial
institution regarding loan applications processing time. The agent should caution the buyer
that if this period is too long, the seller may consider the offer unattractive. The final date for
the finance must be a business day.
[18.11.3] Building and pest inspection dates
Building and pest inspections can usually be completed within 7 calendar days. However the
buyer can allow for any time frame such as 10 days. The agent must ensure that when
calculating dates the end date for the inspection to be carried out falls on a business day.
The building and pest inspector must be suitably qualified to carry out the inspection and
prepare the required written report.
If the sellers are not going to be at home at the time of inspection, building and pest
inspectors may require the agent to be present.
Sufficient time should be allowed on the contract for the inspection to take place, the report
to be prepared and delivered to the buyer. The reports are often emailed to the buyer to
make a decision whether or not they intend to proceed with the contract.
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If either the building or pest inspection reveals significant problems the buyer has three
options; namely:
Accept the property as is and proceed with the contract
Terminate the contract
Renegotiate the contract taking into consideration the cost of rectifying the problems
revealed by the inspections
The seller has the right to request a copy of the reports if the contract is to be terminated or
renegotiated. The sellers also have the right to choose whether they will enter into a further
price negotiation or instruct the agent to seek another buyer. If the contract is to be
renegotiated at this stage, the negotiations are usually conducted through the respective
solicitors as they now hold the contracts. The agent still plays a very important role in the
negotiation and strives to keep the contract together.
[18.11.4] Pool Safety

A seller of a property with a non-shared pool has an obligation prior to settlement to give the
buyer a copy of the pool safety certificate. If they cannot provide a copy of the pool safety
certificate prior to settlement, they must give the buyer a Form 36 Notice of no pool safety
certificate prior to a contract being entered into. If the seller gives a buyer the Form 36, the
buyer may inherit the obligation of bringing the fence up to compliance standards and having
a pool safety certificate in place within 90 days of settlement. The REIQ Schedule and Terms
of the REIQ Contract for Houses and Residential Land outline that a pool safety inspection
condition is triggered, (refer to the sample contact at the end of this manual) if a Form 36 is
given to the buyer prior to the contract being entered into.
This condition enables the buyer, at their expense, by a nominated date, to arrange for a
suitably licensed pool safety inspector to inspect the pool fence and issue a pool safety
certificate, or if one cannot be given due to non-conformity, the inspector will issue a nonconformity notice to the pool owner. The buyer will have the right to either, waive the
condition and let the contract proceed or terminate the contract by notice in writing to the
seller if they are not willing to take on the obligation.
If a notice of non-conformity is issued to the pool owner, the pool owner cannot ask another
inspector to inspect the pool within 3 months of the issue date of the non-conformity notice
being given. It would be prudent for an agent to recommend to all sellers of properties with a
non-shared pool to ensure that there is a valid pool safety certificate in place ultimately prior
to a contract being formed, but even perhaps as earlier as when the property is first listed on
the market for sale.
Please note: From 1 December 2015, all pool owners must comply with a single pool safety
standard, regardless of when their pool was built. However, owners will still only need a pool
safety certificate if they are planning to sell or lease a property with a pool.
[18.11.5] Dates for settlement
Date for settlement should allow enough time for all conditions to be met such as finance
approval or tenants to vacate. In Queensland, a sale subject to finance can usually be
completed in 30 days; but contracts of 45, 60, or 90 days settlement are not uncommon.
The contract settlement date is more often negotiated than the price of the property. Each
party wants a settlement date that suits their plans; such as the settlement of the buyers
existing home will influence the buyers choice.
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One of the most difficult times of the year to negotiate a settlement date is prior to Christmas
when the buyer wants possession prior to the holidays and the seller does not want to move
until after the holidays. An agents negotiation skills can often be tested at this point of the
contract.
When the settlement of the buyers present property is a condition of the contract, it is
important that the settlement dates are the same because the proceeds from the prior sale
are to be used for the purchase of the new property. This is known as a contemporaneous
settlement which means that both sales will settle at the same time.
[18.11.6] Time limits
When a party has a duty to perform under the contract, such as a buyer obtaining a
satisfactory building inspection, a date must be inserted in the clause declaring by which the
duty has to be performed. This clause should clearly state what the result is if the required
action is not completed by the due date.
[18.11.7] Calculating contract dates
When preparing a contract where negotiations have not yet been finalised, it is prudent to
draw a time line of all the special conditions.
Each special condition has a time limit as to when it will be fulfilled; such as relevant
contracts are subject to a cooling-off period of five business days.
If the contract is subject to a satisfactory building and pest inspection this clause would
usually be 7 calendar days.
If the sale is subject to finance, notification will probably take longer; usually about 21
calendar days, and wont be due until after the cooling-off period has expired and the building
and pest inspection clause fulfilled.
All special conditions are recorded along the time line in order, from shortest period to
longest. The agent should assess how long it would take to complete negotiations for the
sale, being guided by:
The difference between the offer and the listed price
The agents knowledge of both the sellers and buyers motivation in the sale
The number of parties involved, and the respective ease of contact, having impact on
negotiation finalisation
Whether the buyers and sellers live locally or interstate.
The period of time to finalise the negotiations must be estimated to determine when the
contract can be formed and dated. This is the date from which to calculate the remainder of
dates.
Example: The agent is preparing the contract on the 20th September and anticipates that it
will take two days to finalise negotiations. All the Contract Special Conditions and settlement
dates would then be calculated from the 22nd September. If the negotiations take longer than
anticipated and the contract is not formed and dated, the dates on the contract may be
altered during finalisation. All parties to the contract would then initial the changes to indicate
their respective consent.
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[18.12] Deposits
The agent must ensure that the buyer is clearly aware of the provisions of the deposit clause.
Occasionally, buyers do not realise they have to find extra money before settlement for the
deposit. They often mistakenly believe that their financier will advance money to them once
finance has been approved.
Buyers may also believe that if they are selling a property they will be able to release the
deposit on that property to pay a further deposit. Quite often people sign contracts providing
for payment of further deposits and they simply do not have the money.
[18.13] Definitions
Conveyancing: The act of transferring property or the rights in a property from one
person to another.
Deposit: A deposit is a payment as security for the performance of the contract by the
buyer. It is the agreed amount between the parties to the sale in the event that the buyer
defaults and does not complete the contract. It also forms part of the purchase money.
The payment of a deposit is not necessary for the contract of sale to be enforceable.
However, a deposit is normally paid in full or in part to the deposit stakeholder. Failure to
pay an agreed deposit takes effect as a breach of an essential term of the contract. The
amount of deposit should not exceed 10% of the total purchase price. A deposit in
excess of 10% would constitute an instalment contract.
Deposit dispute: In normal circumstances an agent must pay the balance of deposit
monies to the seller within 14 days of notification. However, if the agent receives
notification of a dispute, there is no requirement for payment to be made by the agent
until further notice has been given advising the agent that the matter has been resolved
and payment can now take place.
The agent cannot release the deposit until notification has been received in writing from
all parties to the contract. The agent must ensure that there are cleared funds.
Notification: All contract notifications must be in writing. Verbal notification is in breach

of the terms of the contract. Notification is essential for the fulfilment of special conditions
to the contract. Failure to notify can have serious implications under contract law.
Special trust account: This is a trust account especially opened by the deposit holder
on behalf of the parties to a contract for the investment of the deposit monies. A special
trust account can only be established if the contract settlement is longer than 60 days.
Stamp duty: A buyer is required to pay stamp duty on the contract. This is done during
the conveyancing process.
Transfer documents: These are documents required for the conveyancing or transfer of
land. The buyer must prepare the transfer documents for stamping and settlement. The
seller is obliged by law to hand their transfer documents over in exchange for the
balance of the purchase price.
Unconditional contract: This is a contract where there are no special conditions to be

fulfilled. A contract can be negotiated and formed as an unconditional contract, or it can
become unconditional after all the special conditions have been fulfilled.
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Vacant possession: This relates to the unimpeded physical enjoyment of the property.
This carries with it the understanding that at the time when the buyer requires
possession the property will be free of rubbish and physically useable for the purpose
intended. Tenants must vacate a property that has been tenanted by the date of vacant
possession.
Date of sale: Under common law, the date of sale is the date that transfer documents
are exchanged and title over the property is transferred to the new owners. This is
usually at settlement.
The agent should advise property investors that the date of sale for tax purposes will be
deemed to be the date of contract, as the buyer can be viewed to benefit, or suffer a loss,
from the time the buyer enters into the agreement to purchase, and not necessarily when the
sale completes.
[18.14] Contract time line
Vacant possession on settlement and timeframes associated with periodic tenancy
agreements.
The RTRA Act requires the tenant on a periodic tenancy, be given 4 weeks notice to leave, if
the notice is given because of a sale Contract (section 329(2)(f)). The notice issued to the
tenant is RTA approved Form 12. The RTA Form 12 is issued by the managing agent after
instructions have been received from the current owner of the property. In some cases, the
selling agency may not be the managing agency. It is important clear communication occurs,
so the owner of the property gives clear instructions to both the selling and managing agent
as the Contract timeline progresses. If the client is self-managing, it is important the client is
aware of the notice requirements of the RTRA Act.
When considering timeframes for vacant possession on settlement, the method of delivery of
the RTA Form 12 must be taken into account. The notice can be posted, hand delivered to
the premises or the tenant can nominate on the Form 18a General tenancy agreement, if
they will receive notices by email and / or fax.
If the notices are being served by post, the calculation of the notice period will commence the
day after the tenant receives the notice. If posted allow sufficient time for the document/s to
arrive at the address for service indicated on the Form 18a general Tenancy
Agreement. The timing for this is dependent on the mail service in the area, the type of
service used (standard or express post) and the day and time the notice is posted. The
Australia Post website https://auspost.com.au/parcels-mail/delivery-times.html provides
guidance on the anticipated date of delivery.
If notices are hand delivered to the premises or the address of service indicated on the Form
18a General Tenancy Agreement, the calculation of the notice period will commence the
following day.
Once the day of vacate (handover) is calculated it is best practice to include at least 2 to 5
business days in the calculation for the settlement date. This will allow for the exit/vacate
inspection to be completed by the managing agent or owner, as well as any remedial work
required for the bond finalisation to be completed. If the buyer requires a pre-settlement
inspection this would be best completed once the remedial work is finalised.
The time to allow for the exit inspection and remedial work to be completed after the
handover date of the RTA Form 12 can vary considerably in practice and is dependent on
the history of the tenancy, the lessor and managing agent.
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If the handover/vacate day falls midnight on a Friday additional days may need to be
included to facilitate the final inspection and remedial work due to the availability of the
property manager or contractors on a weekend.
NOTE: Accounting for the provisions of the RTRA Act, the delivery of notices and the
finalisation of the periodic tenancy, the settlement date for a Contract requiring vacant
possession on settlement may vary upwards of 30 days from the unconditional date.
Subject to the clients instructions, if they are reliant on the cash flow from the tenanted
property, it is unlikely they would want the tenant to be given a Notice to leave, until the
Contract of Sale had become unconditional. Unconditional being, ALL CONDITIONS OF
THE CONTRACT ARE FULFILLED; conditions may be special conditions, building and
pest and finance. Therefore if a buyer and seller agree on a Contract subject to a Building
and Pest Inspection within 10 days and finance approval within 21 days, the settlement date
would be calculated to be at least 30 days (subject to method of delivery of notices) after
finance approval date.
Timeline example
The following time line is an example of how to calculate an appropriate settlement date,
where the buyer would like vacant possession, and the tenant is on a periodic tenancy.
The RTA Form 12 Notice to leave will be hand delivered by the property manager (on their
clients instructions) once all conditions have passed met under the Contract of Sale.
PLEASE NOTE: The dates and timing for conditions do not reflect any REIQ
recommendations of time you should allow for each condition. The following timeline has
been prepared as a guide only. There are many variables in practice which will impact on
the timeline and associated contract negotiations.
Remember, all conditional dates are something that is agreed on between both the buyer
and seller, at the time of negotiation. The dates that are agreed on by both parties should
always be business days.
In this situation there are tenants residing at the property who are on a periodic tenancy
agreement. The buyer requires vacant possession on settlement.
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FEBRUARY 2015
Wednesday Thursday
Sunday
Monday
Tuesday
2
Proposed contract
date when contract
will be signed, dated
and copies given to
seller, buyer and
their respective
solicitors.
Initial deposit is paid
by the buyer.
9
10
8
15
22
16
Two weeks (14
days)for building &
pest inspection and
pool safety
inspection would be
to this date.
23
Three weeks (21
days)for finance to
be arranged would
be to this date.
Buyer or their
solicitor notifies
whether contract is
proceeding or not,
at latest by 5pm.
Sometimes happens
only slightly before 5
pm. Property
manager generally
not available to
serve notice to
tenant after 5pm.
Balance of deposit
is due.
Friday
Saturday
11
12
13
14
17
18
19
20
21
24
First business
day the contract
is now
unconditional.
Property
manager is
instructed by
client to serve
RTA Form 12
notice to tenant
either by hand
delivering or
emailing the
notice today.
25
Counted as
day one of the
four week
notice period
required to be
given to the
tenant under
the RTRA Act.
26
27
28
Thursday
Friday
Saturday
MARCH 2015
Wednesday
Sunday
Monday
Tuesday
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Day 28 of
required
minimum 4
week notice
period.
Handover date
ends at
midnight. Keys
returned by
tenant today or
first thing the
following
morning verify
with property
manager.
25
First business
day for property
manager to
finalise tenancy.
Exit inspection
conducted by
property
manager. Any
remedial works
(such as
cleaning,
repairs) are
organised.
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26
27
Settlement
Second business
date
day for property
manager to finalise
tenancy.
Remedial work
checked and
finalised. Presettlement inspection
conducted by buyer.
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Question 1: Complete a sample Contract for Houses and Residential Land (following) using
the information following.
Date of contract
preparation:
Agent:
4 July 2016
NJB Realty Pty Ltd t/a REIQ Realty
Licence number 9658245.
Deposit Holder: NJB Realty Pty Ltd
ABN 82 654 987 123
Deposit Holders Trust Account: REIQ Realty Trust Account
Bank: National Australia Bank
BSB: 064 910 Account no: 1000 1192
Agents address:
21 Turbo Drive, Coorparoo, Qld 4151

Ph: 3249 1111 Fax: 3249 2222
Email: info@reiqrealty.com.au
Seller:
Jonathon Brett SNELL
Sellers address:
44 Tumble Drive BROWNS PARK QLD 4767

Ph: 3576 8341
Solicitor:
ABC Solicitors Attention Angela Hyde

PO Box 25 BROWNS PARK QLD 4767
Ph: 3516 2173 Fax: 3516 2184
Buyer:
Stephen Joseph BLACK
Buyers address:
37 Maui Lane BLUEWATER QLD 4991

Ph: 3530 2961 Fax: 3530 2982
Solicitor:
Conveyancing Done Right

PO Box 112 BLUEWATER QLD 4991
Ph: 3531 2843 Fax: 3531 6292
Address of property
being sold:
63 Starfish Drive BROWNS PARK QLD 4767
Description
Lot 141 on SP 72475
Title Reference:
12378962
Area:
512 sq m
Type of holding:
Freehold
Present use:
Residential
Local Government
Authority:
Cairns Regional Council
Inclusions:
It has been agreed that the Sanyo Plasma TV in the family

room will be included in the sale
Exclusions:
The seller will be taking the Kelvinator (bar) refrigerator
Searches:
Reveals an Easement No. 601094405
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Tenant:
Nicholas John McCABE
Term:
6 months commencing 2 December 2012
Rent:
$450.00 per week.

Bond: $1800 RTA number 324598
Managing agent:
Best Practice Real Estate

21 Turbo Drive, Mayflower
Licence number 32656659
Managing agent address:
ABN 3264 82694

Ph: 3554 3699 Fax: 3554 0445
Email: bestpractice@agents.com
Purchase price:
$585,000
Deposit:
Total deposit is 5% of the purchase price. The first instalment

should be sufficient to cover the termination penalty. The
balance of the 5% deposit is payable on 25 July 2016
Deposit Holder:
NJB Pty Ltd trading as REIQ Realty
Finance amount:
$400,000
Financier:
Westpac. 21 days needed *insert an actual date and ensure

that it is a business day
Building & Pest

inspection date:
14 days needed insert an actual date and ensure that it is a

business day
Inspector:
Leon Hillier Inspections for building and pest inspections
Safety switch:
Property has a safety switch installed
Smoke alarm:
Property has compliant smoke alarms
Neighbourhood Disputes
(Dividing Fences and
Trees) Act
Property is not affected by an application, to, or an order

made by, the Queensland Civil and Administrative Tribunal
(QCAT) in relation to a tree on the land
Pool Safety
The seller has not provided the buyer with a valid Pool Safety
Certificate and wont prior to settlement
Pool Safety Inspector: Pools R Us
Pool Inspection date: 14 days needed insert an actual date
and ensure that it is a business day
Settlement:
You are to calculate a settlement date suitable for giving the

current tenants notice to vacate before settlement occurs.
Pay particular attention to any public holidays that may affect
the settlement date. Buyer requires vacant possession at
settlement.
Place for settlement:
BROWNS PARK
Special conditions:
Nil
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The Body Corporate and Community Management Act 1997 (BCCM Act) applies to the sale
of all property that has a body corporate or common property, known as Community Titles
Schemes. The BCCM legislation requires the agent and seller to make specific disclosures
and warranties to the buyer before they enter into a contract. These disclosures relate to the
affairs of the body corporate and the buyers obligations when purchasing property in a
community titles scheme.
The agent must also use the Contract for Residential Lots in a Community Titles Scheme
that is modified from the Standard House and Land Contract. The BCCM Act places
significant requirements in the sales process of any property belonging to a Community Title
Scheme. The BCCM Act is regulated by Fair Trading and the Office of the Commissioner for
Body Corporate and Community Management administers all matters relating to community
title schemes.
UNIT 19 CONTRACTS FOR RESIDENTIAL LOTS
[19.1] Community Titles Scheme
A community titles scheme is a single community management statement recorded by the
registrar identifying land (the scheme land); and the scheme land. A community titles scheme
can only be over freehold land.
For each community titles scheme, there must be:
At least two lots
Common property
A single body corporate
A single community management statement
Home units and townhouses are included, but other types of properties may be within the
scope of the BCCM Act, such as:
Certain house and land subdivisions, especially those in secure, gated communities
Duplexes
Retirement communities other than manufactured residential homes parks
Commercial car parks and storage sheds
Retail shops
Professional office suites
Commercial and industrial buildings
If the agents title search shows a BUP (Building Units Plan), GTP (Group Title Plan), a SP
(Special Plan) or a CTS number (Community Titles Scheme number), then the property
comes under BCCM legislation.
If the agent is dealing with any property that has a community title or comes under the above
description, the Contract for Residential Lots in Community Titles Scheme or a Contract for
Commercial Lots in Community Titles Scheme must be used for the respective residential or
commercial sale. If a Standard House and Land Contract is used for the sale of a community
title scheme property, then the contract will be invalid and not enforceable at law.
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[19.2] Common community title terminology

[19.2.1] Strata title
This refers to the way that the building has been subdivided. In the case of strata title, the
buildings air space has been subdivided horizontally into stratums or layers of space. A
strata-titled building is easily identified by referring to the registered plan description (RPD)
during a title search. If the RPD is a BUP, (Building Units Plan), it means that the building is
strata titled.
[19.2.2] Group title
This also refers to the way the building or land has been subdivided. In this instance, the
airspace subdivision will be vertical, so there is no overlapping of boundaries. If the RPD is a
GTP, (Group Title Plan), it means that the building or land is group titled.
[19.2.3] Standard format lots

Since 1997 all new community title lots in a building that would have previously been strata
or group titled have been designated a new and more flexible description. They are known as
standard format lots. These lots are considered part of a building, bounded by the floor, walls
and ceiling. The land is owned and controlled by the body corporate, with the exception of
land that is granted for exclusive use (on title or by resolution of the body corporate) to an
individual proprietor.
[19.2.4] Building format lots

Since 1997 all new community title lots that contain their own land and a building are known
as building format lots. This is most commonly found in new house and land subdivisions
(that are not standard flat land subdivisions) and comprise attached housing, such as
townhouses and duplexes.
[19.2.5] Volumetric and layered schemes
Since 1997, property developers may either amalgamate different schemes in the one
complex, or layer them according to the stages in which they are built, and with respect to
their ultimate function. It is also possible to subdivide airspace without any relationship to
land.
Developments may occur above, or over, other designated improvements such as roadways
(e.g. the State Government buildings over Turbot and Margaret Streets in Brisbane),
sportsgrounds (such as the Woolloongabba Cricket Ground), and mixed retail and
commercial buildings.
[19.2.6] Community title scheme (CTS)

Each building with a body corporate must be registered with the land registry office of the
Department of Natural Resources and Mines. Each building is given a scheme number to
indicate their compliance with the BCCM Act. This number must be inserted on all contract
documentation.
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[19.2.7] Community management statement (CMS)

A community management statement is basically to identify a community titles scheme. It is
the statement of affairs of the individual body corporate. The buyer, or their solicitor, should
always check the CMS before finalising the contract. The CMS will contain:
The by-laws or rules of the body corporate
Any proposed future development of the scheme (this is important when buying off the plan
or when purchasing in a staged development)
The interest schedule; e.g. the voting powers or entitlements on the body corporate
The contribution schedule; e.g. all monies to be paid by the proprietor to the body corporate
[19.2.8] Body corporate

A body corporate, comprising of all the owners of the buildings lots, is the administrative
body for a community title building. The body corporate jointly owns the common property of
the building and must make decisions concerning how it is to be run and maintained. Under
the provisions of the BCCM Act the body corporate is required to meet regularly to decide on
matters relating to the complex and must elect office bearers once a year at an annual
general meeting.
[19.2.9] Body corporate manager

The body corporate manager for a community titles scheme is the person engaged by the
body corporate, other than as an employee of the body corporate, to supply administrative
services to the body corporate. This person is not to be confused with a building or unit
manager.
It is the body corporate manager who usually provides the agent with information for contract
disclosures, including the Body Corporate Management Statement.
[19.2.10] Body corporate secretary
The body corporate secretary is an elected member of the body corporate who liaises with
the body corporate manager and plays a similar, or complementary, role to the manager. The
secretary is responsible for keeping the records of the body corporate and will provide the
required information to an agent for a contract in the absence of a body corporate manager.
[19.2.11] Regulation module
All registered community management schemes must come under a nominated plan of
operation known as a regulation module. There are four regulation modules recognised
under the BCCM Act. Each functions according to the building use:
Standard Regulation Module. This applies to most residential unit and townhouse
complexes.
Commercial Regulation Module. This applies to commercial, industrial and retail

buildings and complexes.
Accommodation Regulation Module. This applies to short-term holiday rental

apartment complexes, hotels and motels that are commonly purchased for investment as
a going concern, and not for owner occupation.
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Small Schemes Regulation Module. This applies to complexes of up to 6 lots. These

schemes are basically de-regulated and only have minimal requirements under the
BCCM Act.
[19.2.12] Administration fund

Owners in a community title complex must contribute monies on a regular basis (usually
quarterly) to the body corporate to help maintain the common property and pay for insurance.
These include:
Costs to employ maintenance and cleaning staff
Electricity, water, gas and other services
Building insurance, public liability insurance and WorkCover insurance
General repairs and maintenance
Gardens and pool cleaning
Taxes earned on funds invested
[19.2.13] Sinking fund

The sinking fund is a long-term investment fund where contributions are made for scheduled
maintenance programs on a building. The body corporate must engage a quantity surveyor
to prepare a projected maintenance schedule every 12 years.
[19.2.14] Lot entitlement
A lot entitlement is an apportionment of rights that a proprietor of a lot has in the body
corporate. The entitlement is normally proportionately calculated according to the value of
each owners lot. It also has a relationship to the size of the lot and the body corporate
resources that will be used to service the lot. For instance, a unit on the top floor of a highrise building will use more resources by way of a lift as opposed to a unit with ground floor
access.
There are two types of lot entitlements to be aware of:
1.
The contribution schedule. These entitlements are used to calculate the lot owners
share of the body corporate expenses e.g. insurance premiums. The contribution
schedule also relates to the owners voting power on the body corporate.
2.
The interest schedule. These entitlements relate to the owners share of the unimproved
value of the common property and body corporate assets. For instance, this information
is important if selling to an investor who may wish to claim a depreciation allowance for
tax purposes on the investment. The Interest Schedule also indicates the owners share
of the unimproved value of the community land for calculating rates and local
government charges.
[19.3] Sales documentation for community title lots

The BCCM Disclosure Statement (Section 206 Statement) must be provided to a prospective
buyer before they can sign a contract to purchase community title lots.
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[19.3.1] BCCM Disclosure Statement

The BCCM Disclosure Statement comes in two versions:
A Section 206 Statement for the sale of existing lots
A Section 213 Statement for the sale of proposed lots
[19.3.2] BCCM Section 206 Disclosure Statement

The BCCM Section 206 Disclosure Statement is the most common disclosure prepared by
an agent on the sellers behalf. It is drafted from information contained in a Body Corporate
Information Certificate which is supplied by the body corporate secretary or manager. Some
larger body corporate management companies will complete the BCCM Section 206
Statement for the agent so it is ready to be given with the contract.
There are statutory charges for this certificate payable to the body corporate secretary or
manager. Charges vary according to the complexity of the body corporate and the nature of
the information required. It is therefore prudent for the agent to ascertain the nature of the
charges before finalising the Property Occupations (PO) Form 6 Appointment of agent with
the client, so the agent can recover costs from the client with the required written authority.
The BCCM Section 206 Disclosure Statement must provide the buyer with essential
information relating to how the community scheme is run, and details of financial
contributions. A seller of an existing lot in a scheme, including a mortgagee exercising power
of sale, must give the buyer the BCCM Section 206 Disclosure Statement before a buyer
enters into a contract. The statement:
Must be signed by the seller or the seller's agent. From a risk management prospective
it is recommended the seller sign the Disclosure. If the agent is signing on behalf of the
seller, best practice is to seek the sellers instruction the Disclosure Statement is
accurate before the agent signs it.
Must be substantially complete, and must:
Show the name, address and contact telephone number for the secretary of the
body corporate or, where a body corporate manager is appointed to issue
information certificates, the manager
Stipulate the amount of annual contributions fixed by the body corporate as payable
by the owner of the lot
Identify improvements on the common property for which the owner of the relevant
lot is responsible
Identify the regulation module applying to the scheme
List all body corporate assets required to be recorded on a register maintained by

the body corporate and include other information prescribed under the regulation
module applying to the scheme
State whether there is a committee for the body corporate or that a body corporate
manager is engaged to perform the functions of a committee
[19.4] Selling units off the plan

When selling units off the plan, the sellers disclosure statement must be given to the buyer
pursuant to both section 21 of the Land Sales Act and section 213 of the BCCM Act. The
disclosure statement must outline the following:
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Clearly identifies the lot to be purchased
States the names and addresses of the prospective seller and the prospective buyer
Clearly states whether the prospective seller or the prospective sellers agent
(whether personally or by any employee) has made or offered to the prospective
buyer or the prospective buyers agent any representation, promise or term with
respect to the provision to the buyer of a certificate of title that relates to the lot in
question only
If any representation, promise or term, such as is referred to in paragraph (c) has

been made or offered, clearly states the particulars thereof
States the date on which it is signed
must state the amount of annual contributions reasonably expected to be payable to

the body corporate by the owner of the proposed lot
The seller must also provide a first statement outlining the following information:
The amount of annual contributions reasonably expected to be payable to the body

corporate by the owner of the proposed lot
For any engagement of a person as a body corporate manager or service contractor

for the scheme proposed to be entered into after the establishment of the scheme, or
proposed to be continued or entered into after the scheme is changed:
the terms of the engagement, other than any provisions of the code of conduct
that are taken to be included in the terms under s118
the estimated cost of the engagement to the body corporate
the proportion of the cost to be borne by the owner of the proposed lot
Must include, for any authorisation of a person as a letting agent for the scheme
proposed to be given after the establishment of the scheme, or proposed to be
continued or given after the scheme is changed, the terms of the authorisation
Must include details of all body corporate assets proposed to be acquired by the body
corporate after the establishment or change of the scheme
Must identify the regulation module proposed to apply to the scheme
Must include other matters prescribed under the regulation module applying to the
scheme
The seller has 36 months from the contract date to deliver a registrable transfer to the buyer.
Otherwise, the buyer is entitled to cancel the contract. In certain situations, the seller can
make an application to extend this time.
[19.5] Sellers disclosure (implied warranties)
The seller warrants that, as at the completion of the contract, to the sellers knowledge, there
are no circumstances, other than circumstances disclosed in the contract, in relation to the
affairs of the body corporate likely to materially prejudice the buyer. These warranties apply
to all contracts for existing and proposed lots in a community titles scheme. These warranties
cannot be contracted out of, and provide the buyer with a right to terminate the contract if
they are breached.
Buying into a community titles scheme is unlike buying the freehold in a detached dwelling.
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A buyer of a community title lot is committing to four entities:
Title to a particular property
Title to the common property
Responsibilities and liabilities of the body corporate
A community of people who have rules and by-laws that must be observed
The implied warranties protect a buyer from a range of potential problems in what can be a
type of high-density communal living. These warranties are contained within the REIQ
contract for the sale of residential lots in a community title scheme and are described as the
Sellers Disclosure.
If defects in the common property, body corporate assets, or liabilities of the body corporate
are disclosed in the contract then they will no longer be the subject of implied warranties.
Those disclosed defects or liabilities are then excluded from the implied warranties.
The seller warrants that at the completion date of the contract:
There are no latent or patent defects in common property or body corporate assets other
than those arising through fair wear and tear or disclosed in the contract
There are no actual, contingent or expected liabilities of the body corporate other than
normal operating expenses or as disclosed in the contract
There are no circumstances, other than as disclosed in the contract, in relation to the
affairs of the body corporate likely to materially affect the buyer adversely
The first and second warranties apply only to the extent that the cost of remedying defects or
meeting liabilities exceeds the total of 1% of the purchase price and that the body corporate
funds available at the completion for remedying defects or discharging liabilities. Two
situations are possible:
Funded rectifications
Unfunded rectifications
Example: A buyer purchases a property for $100,000. The cost of remedying defects comes
to more than $1000. This exceeds 1% of the purchase price.
If the sinking fund has $5000 available for remedying defects, the buyer cannot use this
warranty to terminate the contract. If the sinking fund has insufficient funds, and the cost of
repairs is more than 1% of purchase price, the buyer may elect to terminate the contract.
All three warranties apply to a given defect or expenditure and can be nullified by disclosure
in the contract. Buyers can terminate contracts for breach of the warranties.
[19.6] Sellers and agents
Sellers and agents should ensure that:
Searches of the body corporate records are made by the seller, the agent or a
professional search agent, and the statutory Body Corporate Information Certificate is
obtained from the body corporate secretary or manager. This certificate may be relied on
as evidence against the body corporate of matters stated in it other than to the extent
that the certificate contains an error that is reasonably apparent to uncover the
information needed
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The correct prescribed Section 206 or Section 213 Disclosure Statement is provided and
signed by the buyer before the contract is signed and the Disclosure Statement is
substantially complete and accurate
The Sellers Warranties are correct at the time they are given
Disclosure has been made to exclude from the statutory warranties those matters,
including defects or liabilities, of which the seller is aware, or advice has been given
about liability and risk in relation to non-disclosure and the application of the warranties
If the seller provides information and does not require that information to be vetted by a
search of the body corporate records, the agent should require that those instructions should
be confirmed in writing. This situation may occur where an owner does not wish to incur the
costs of a search conducted by a professional search agent. The agent in this instance
should seek legal advice as the agent still has a legal responsibility for the information that
the seller passes on to a buyer.
[19.7] Contract documentation for the sale of community title lots
[19.7.1] Application
This contract is for use in the sale of residential properties and commercial properties which
entail a body corporate. With respect to a commercial contract, agents are also required to
complete the information regarding commercial tenancies. Off-the-plan contracts will almost
certainly be prepared by developers solicitors and will have a different format to the Plain
English version.
[19.7.2] Required information
The BCCM Act requires disclosure of certain information about the community titles scheme
including the lot and the body corporate for the scheme. This information should be obtained
from:
The seller
The body corporate/body corporate manager
Upon application, and payment of the required fee, the body corporate will provide an
information certificate containing some of the information needed. It is imperative that the
agent does not confuse this information certificate, obtained from the body corporate, with
the Information Sheet which must attach to the front of the contract.
Professional search agents may also undertake a search of the body corporate records for a
fee and provide the relevant information. It is important that all information required by the
BCCM Act is given to the buyer. This is set out in the disclosure statement and the contract,
and must be accurate. Failure to meet the requirements of the BCCM Act may give the buyer
an opportunity to cancel the contract.
[19.7.3] Format
The format of the contract reflects legislative requirements. The contract documentation
comprises of the:
1.
BCCM Section 206 Disclosure Statement with prescribed information
2.
Property Occupations Form 8 Disclosure (if applicable)
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3.
Body of the contract, incorporating the reference schedule, terms and special conditions
4.
Sellers Disclosure (Warranties) pursuant to section 163 of the BCCM Act
[19.7.4] Section 206 Disclosure Statement
Three copies of the Disclosure Statement should be prepared
The seller should sign each copy
The buyer should acknowledge receipt on all three copies
Two copies should be returned with the buyers and sellers copies of the contract
[19.7.5] Section 206 Disclosure Statement information
Name of the body corporate - e.g. Beauty Point
The community titles scheme - the community title scheme must be described by its
name, followed by the words community titles scheme and the number allocated by the
Department of Natural Resources for that scheme, e.g. Beauty Point Community Titles
Scheme number 2246.
Secretary of body corporate/body corporate manager - if there is no body corporate

manager, the secretary's details must be completed. Complete the details for the body
corporate manager for the scheme if there is one and if there is no manager, complete
this item as Not Applicable.
For example:
Secretary:
Mrs Mary Wilson,

Unit 1/22 Ocean Rise, Beachmere Qld 4444
Tel. 07 5432 9876
Fax 07 5432 9844
Manager:
ABC Management Services Pty Ltd,

PO Box 55, Whitewater Qld 4445
Tel. 07 5442 6418
Annual contributions payable to the body corporate - the administrative fund and
sinking fund levies payable by the owner of the lot must be stated. The Act allows for
separate levying of certain insurance excesses and if any such charge is made by the
body corporate in respect of the lot, details must be disclosed.
For example: Administration Fund: $1,200 each year by instalments in advance on the
First day of each Quarter Year.
Sinking Fund - $1,000 each year by instalments in advance on the First day of each
Quarter Year.
Improvements on common property - insert details of any improvements made to the

common property for which the lot owner is responsible, such as an approved air
conditioner servicing the lot exclusively. For example: Exclusive use courtyard.
Regulation modules - there are four Regulation Modules that may apply. The
Regulation Module that applies to the scheme must be indicated by ticking the
appropriate box. If no box is ticked, the Standard Regulation Module is taken to be
nominated. The other regulation modules are:
Accommodation module
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Small lots module

Commercial module
Body corporate assets - the body corporate must keep a register of body corporate
assets. Assets with a value of more than $1,000 must be recorded by the body
corporate. Details of all body corporate assets required to be recorded on the register,
and not just those listed on the register if there are other assets that should be recorded,
must be shown in the disclosure statement. A Body Corporate Information Certificate
obtained from the body corporate will disclose these assets.
Information prescribed under regulation modules - each regulation module has

standard information relating to the way it is run and structured. A body corporate must
nominate under which regulation module they will be operating. However, there may be
other information that may have to be disclosed in the future. At the time of writing, no
such information has been prescribed. It is prudent to insert, for example:
The standard provisions for the nominated regulation module apply as set out in the
BCCM Act 1997.
Signing - the seller should sign the disclosure statement where indicated.
Buyer's acknowledgment - the buyer should acknowledge receipt of the disclosure

statement by signing where indicated.
[19.7.6] Completing the REIQ Contract of Sale for Residential Lots in a Community
Titles Scheme
Following is a guide to completing the REIQ Contract of Sale for Residential Lots in a
Community Title Scheme. At the end of this theoretical study, you will view and study the
contract.
[19.7.7] The reference schedule
Contract date
A contract is not dated until negotiations are completed. The date is the final addition to the
contract. Once offer and acceptance occurs, and all documents signed and initialled by all
parties, the contract is then dated by the agent.
When an agent is preparing a contract document for signing, the date section of the form
must remain empty.
Agent
The selling agent's name, license number and expiry date, address, telephone and facsimile
should be completed.
Agent:
Riverview Estates Pty Ltd T/A Riverview Real Estate

Licence No. 553456 Expiry 1/10/09
ABN 22456
Address:
10 Main Street, Riverview Qld 4426

Tel: 07 4456 7890
Fax: 07 4456 7889
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Parties
Details of the seller and buyer and their respective solicitors are required e.g.:
Seller:
John Robert Derby and Mary Elizabeth Derby
6/27 Main Street, Riverview Qld 4426
Tel: 07 4466 3387
Solicitor:
Pickwick & Co. Attn: Mr Smith

ABN 124879
2/34 Main Street, Riverview Qld 4426
Tel: 07 4456 3214
Fax: 07 4456 3215
Buyer:
Jacob Michael Robson

12 Greentrees Avenue, Forestdale Qld 4110
Tel: 07 4436 2314
Fax: 07 4436 2314
Solicitor:
Hogan & Tully Solicitors Attn: Ms Tully

2/56 Queen Street, Forestdale Qld 4110
Email: hogantully@aussie.com
Tel: 07 4436 2227 Fax: 07 4436 2226
Property
Insert details relating to the title reference etc.
according to the title search.
Property:
6 Riverview Lodge, 27 River Terrace, Riverview
Description:
Lot 6 SP 6256
CTS 2231
Title Ref:
12456789
Present use
Insert the current legal use of the property; for example: residential unit.
Local government
Insert the name of the local council in which the land is situated; for example: Riverview
Council.
Excluded fixtures
These are items that the seller is excluding from the sale. A built-in bookshelf, built-in
dishwasher or any other items would normally be included in the sale. Insert the item
description; such as drapes in master bedroom.
Included chattels
These are chattels that are included in the sale; such as the sound system, Plasma TV or
washing machine. In this example sale, the washing machine and clothes dryer are included
in the contract.
Deposit holder
Insert the name of the person or company who will hold the deposit. Usually this will be the
agent or one of the partys solicitors e.g. Riverview Real Estate.
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Purchase price
Insert numbers only. It is not necessary to use words, such as $345,000.
Deposit
The deposit can be paid in two instalments; the initial holding deposit and then a more
substantial deposit some time later.
Where the deposit is payable in one payment, the details can be entered thus:
Deposit:
$34,500 payable when the buyer signs this contract.
Where the deposit is payable in two instalments:

Deposit:
$10,000 payable when the buyer signs this contract,

$24,500 payable on a specific date or event.
Default interest rate

It is best practice to leave this section of the contract blank. If no figure is inserted, the rate
published by the Queensland Law Society will apply. This rate is usually quite high and is
calculated on a daily rate.
This is the interest rate payable by the Buyer to the Seller if any money under the contract is
not paid by the due date. Refer to clause 9.6 of the contract schedule.
Finance amount
This is the amount that the buyer needs to borrow to complete the purchase. Insert numbers
only; there is no need for words; such as $250,000.
Financier
Identify the proposed financier and branch; for example: Nationwide Bank, Greentrees.
Finance date
This is the date that the buyer must notify the seller that the application for finance has been
approved. As previously mentioned the date that is inserted into this condition should be an
actual date, not an event.
If the buyer does not notify the seller of the result of the application by 5 pm on this date the
seller can terminate the contract. Refer to clause 3 of the contract schedule.
Building and/or pest inspection
Buyers can terminate the contract up to 5 pm on the buyers inspection date if they have not
received a building and/or pest inspection report, which is satisfactory to the buyer. If they do
not terminate by 5 pm on the buyers inspection date, they lose the right to terminate the
contract under that clause. Again, it is wise that an actual date is used for this condition.
Title encumbrances
A title search must be undertaken prior to contract signing. All encumbrances on the land
that will not be released on, or before, settlement are to be clearly and accurately specified.
As the seller's mortgage will be released at settlement and it should not be included.
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However, an easement registered on the title to the lot should be inserted. Simply indicate
the type of encumbrance and its registered number.
The section requires the agent to indicate whether or not the Property is sold subject to any
Encumbrances by ticking yes or no. Where the agent ticks yes, those Encumbrances are
to be listed in the relevant area. It is unacceptable to put none known or as per title. .
Residential Tenancies
Include details of any tenancy if they will be residing in the property at the time of settlement.
Tenants name:
John David SMITH
Term and Option:
1 year
Starting Date of Term:
10 January 2013
Rent:
$500 per week
Bond:
$2000 RTA Receipt number 22456
Managing agent:
The Best Practice Real Estate

ABN 3264 82694
Licence number
32656659
Address:
21 Turbo Drive, Riverview

Ph: 07 5554 3699 Fax: 07 5554 0445
Email: bestpractice@agents.com
If there are no tenants or vacant possession is required, leave this space blank.
Pool Safety
A regulated shared pool
Similarly to a property with a non-shared pool, the property owner has an obligation to
provide either a copy of the pool safety certificate or the Form 36 to the prospective buyer
prior to settlement. However, as they are not the pool owner, they do not have control over
the compliance of the pool fencing. If a certificate is not valid, the property owner (seller)
must also provide a copy of the Form 36 to the pool owner (Body Corporate) at the same
time they give the prospective buyer a copy. The pool owner (Body Corporate) then inherits
the obligation to ensure that the pool fence is compliant and a valid certificate is in place
within 90 days of settlement occurring.
A regulated non-shared pool
There may be an occasion where there is a property in a community title environment that is
associated with a shared pool but also has a non-shared pool (e.g. spa or private pool for the
exclusive use of one lot).
It is a requirement that a seller of a property with a regulated pool that is a non-shared pool
(typically a house) provides to the buyer, prior to settlement, either a copy of a valid Pool
Safety Certificate. If a certificate cannot be provided, a notice in the approved form, a Form
36, must be given to the buyer prior to the contract being entered into, stating to the buyer
that there will not be a pool safety certificate in place prior to settlement. This form must also
be given to the Pool Safety Council.
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If the later of the two options is provided to the buyer, the buyer will inherit the obligation to
ensure that there is a valid pool safety certificate in place for the regulated pool within 90
days of ownership at their expense.
Under the REIQ Contract for Residential Lots in a Community Titles Scheme, if there is not a
valid pool safety certificate in place at the time of the contract being formed between the
seller and the buyer, there is provision that the buyer may arrange for a pool safety
inspection to be conducted within a nominated time frame (under similar terms to a building
or pest inspection). If the inspection results in a pool safety certificate being issued by a
suitably qualified inspector, there is no further action required by either party.
If the inspection result in a notice being issued for non-compliance, the buyer has the right to
terminate the contract by notice in writing to the seller or to waive the condition and the
contract proceeds, as per the provisions of Clause 4.2 or the terms and conditions.
Agents should be mindful that they inform all parties involved that a pool safety inspection
can only be carried out by a suitably qualified pool safety inspector. Checking contractors
qualifications can be done so through the pool register located on the Department of Housing
and Public Works website www.hpw.qld.gov.au
Any agent that is employing the services of a pool safety inspector on behalf of a client
should ensure that they have a completed and signed contractor appointment form from the
inspector and also check the pool register via www.hpw.qld.gov.au before engaging any
services.
It is prudent for an agent to ensure that the issue of a pool safety certificate is discussed with
their client at listing stage and throughout the marketing of a property. Having a pool safety
certificate in place at the time of a contract being formed will minimise any possible
negotiation issues between the seller and buyer.
Electrical safety switch
The agent must tick if a safety switch is installed in the individual lot being sold. If no safety
switch is installed, the buyer shall take over the responsibility to have a safety switch
installed within three months from the date of settlement.
It is the responsibility of the seller/sellers solicitor to notify the electrical authority of the
existence or non-existence of a safety switch at the time of settlement.
Remember, if the property has been a rental property, a safety switch should be installed by
law.
Smoke alarms
By ticking whether or not compliant smoke alarms are installed, indicated installed in the lot.
Unlike the provision concerning electrical safety switches which allows for the buyer to
takeover the responsibility of installation; it is mandatory that sellers have compliant alarms
installed (as of 1 July 2007).
Neighbourhood Disputes (Dividing Fences and Trees) Act 2011 (NDFT Act)
The Neighbourhood Disputes (Dividing Fences and Trees) Act 2011 contains specific
provisions relating to the sale of land affected by an application or order in relation to a tree.
Under the NDFT Act, the Queensland Civil and Administrative Tribunal (QCAT) has
jurisdiction to hear and decide matters relating to trees. QCAT also has the power to make
orders relating to tree disputes.
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Section 83 of the NDFT act requires a person who is selling land affected by an application
or order relating to a tree, to give a buyer a copy of the application or order before the buyer
enters into a contract of sale for the land.
Failure to comply with this statutory requirement allows the buyer to terminate the contract at
any time before settlement. In such circumstances, the seller (and potentially, the sellers
agent) may also be liable for any reasonable and legal expenses incurred by the buyer in
relation to the contract for the sale of the land.
REIQ strongly recommends that agents take the following steps in relation to all property
sale transactions:
Ask your client whether the property they are selling is affected by an application to, or order
made by, QCAT in relation to a tree under the NDFT Act.
If the answer to this question is yes:
1. sellers should be advised to immediately seek legal advice in relation to the contract
prior to it being signed by either party; and
2. agents must ensure that a copy of the relevant application or order is given to the
buyer before the buyer signs the contract.
[19.7.8] Contribution schedule lot entitlements

Following commencement of the BCCM and Other Legislation Amendment Act 2013,
contribution schedule lot entitlement may be determined by applying either:
The equality principle
The relativity principle
Previously, the contribution schedule lot entitlements were required to be equal unless
otherwise just and equitable.
This is known as the equality principle.
The alternative option to set contribution schedule lot entitlements is by adopting the relativity
principle.
This means that contribution schedule lot entitlements may be applied unequally between
different lots, having regard to one or more of the following relevant factors:
how the community title scheme is structured
the nature, features and characteristics of the lots
the purposes for which the lots are used
the impact the lots may have on the costs of maintaining the common property
the market values of the respective lots.
[19.7.9] Additional body corporate information

The BCCM Act creates two types of lot entitlement:
An interest schedule lot entitlement
A contribution schedule lot entitlement
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These entitlements must be specified. The lot entitlement for a lot registered before 13 July
1997 is both the interest schedule and contribution schedule lot entitlement. In community
title lots registered since 1997, this information is available on the community management
statement and must be provided for in the searches carried out by the agent at the time of
listing.
Example of a lot in an older body corporate
Interest Schedule Lot Entitlement:
N/A
Aggregate Interest Lot Entitlement:
N/A
Contribution Schedule Lot Entitlement:
10
Aggregate Contribution Schedule Lot Entitlement:
100
In a community title building registered since 13 July 1997, the interest and contribution
schedules may not be the same.
For instance, in the sale of a unit on the top floor of a building which has a roof garden or
courtyard, the entitlements might be completed as per the following example:
Interest Schedule Lot Entitlement:
Aggregate Interest Lot Entitlement:
12
Contribution Schedule Lot Entitlement:
Aggregate Contribution Schedule Lot Entitlement:
12
Insurance policies
An example of how to complete the insurance details for the scheme:
Insurer:
Safeguard Insurance Company
Policy No:
654326
Building:
$4,500,000
Public Liability:
$10,000,000
Other: e.g.: Office Bearers Liability: $2,000,000

WorkCover:
$500,000
Settlement date
Insert the date for settlement. Check that it is a business day e.g. 8 December 2014
Place for settlement
Insert the city or town where settlement is to occur. This will usually be where the sellers
solicitor or seller's bank is situated e.g. Riverview, Queensland.
Signing
Both the buyer and seller sign in the presence of a witness on page 3. The deposit
stakeholder also signs on page 4 when the deposit is received.
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The contract includes a warning statement relating to the sellers cooling off rights. The
warning statement is as follows:
The contract may be subject to a 5 business day statutory cooling-off period. A
termination penalty of 0.25% of the purchase price applies if the buyer terminates the
contract during the statutory cooling-off period. It is recommended the buyer obtain
an independent property valuation and independent legal advice about the contract
and his or her cooling-off rights, before signing.
The deposit holder is also required to sign the contract, acknowledging their responsibilities
in relation to the deposit.
[19.8] Sellers disclosure (contract warranties)
These are the implied warranties that are required to form a part of the contract. The
warranties are made that at the settlement date of the contract:
There are no latent or patent defects in common property or body corporate assets other
than those arising through fair wear and tear or disclosed in the contract
There are no actual, contingent or expected liabilities of the body corporate other than
normal operating expenses or as disclosed in the contract
There are no circumstances other than as disclosed in the contract, in relation to the
affairs of the body corporate likely to materially or adversely affect the buyer
The first two of these warranties apply only if the cost of remedying defects and/or
discharging liabilities exceeds the total of the funds available to the body corporate in its
sinking and administration funds plus 1% of the purchase price.
If the warranties apply, defects or liabilities can be excluded from them by making disclosure
in the contract of the following details under the appropriate heading in the seller's disclosure
including:
Latent or patent defects in the common property or body corporate assets; such as
problems with the construction of the building or common property
Actual or contingent or expected liabilities of the body corporate, such as potential

liability in a personal injury action relating to the common property
Circumstances in relation to the affairs of the body corporate, such as incomplete

records or irregularities in procedures
The agent should question the seller concerning these matters and the body corporate
records should be checked. Best practice recommends that a copy of the Body Corporate
Information Certificate is annexed to the contract. If this is done, the part of the report that
discloses the relevant information should be referred to under the appropriate heading in the
seller's disclosure.
[19.9] Checklist for community titles schemes contracts

When approached to sell a community title property, and before the contract is signed, the
agent should:
Obtain a title search of the individual lot
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Obtain from the seller or through the body corporate manager/secretary a copy of the
Body Corporate Information Certificate to enable completion of the Section 206 BCCM
disclosure statement
Ensure that the seller has fully disclosed all matters which need to be revealed in the
sellers disclosure contained within the contract (warranties)
Not sign the Section 206 BCCM disclosure statement on behalf of the seller, if the seller
provided this information and the agent has not personally inspected the Body Corporate
Information Certificate
Warn the seller, if the seller does not want a search conducted, that the buyer may
terminate the contract if the information is not substantially complete or if the buyer is
materially prejudiced by an inaccuracy
Place the agents warning in writing and have the seller sign it if the seller insists on
proceeding without verifying or updating information
Ensure all information provided by the seller is as current as at the last AGM of the body
corporate. If it is not, obtain a new search of the Body Corporate Information Certificate
Prepare three copies of the Section 206 BCCM Disclosure Statement. Check that each
copy is complete. Do not leave blank areas on the form
Complete the rest of the contract including the seller's disclosures contained within the
contract (the warranties) if relevant
Arrange for the seller or the seller's agent to sign the Section 206 BCCM Disclosure
Statement. If signing as the seller's agent, do so under a written authority from the seller.
The REIQ has special forms for this purpose.
Give the buyer all three Section 206 BCCM Disclosure Statements to sign before the
contract is signed
Refer to the example of a completed Contract and Section 206 BCCM Disclosure Statement
for Community Title Lots on the following pages.
1. Disclosure statement.
2.
Contract for Residential Lots in a Community Titles Scheme
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Question 1: What is a BCCM Section 206 Disclosure Statement and when should it be
signed?
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
Question 2: List five items of information that should be disclosed on the BCCM Section
206 Disclosure Statement.
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
Question 3: You are preparing a contract of sale on a commercial office suite. Your
searches reveal that it is on a community title scheme and that it is strata titled. What
documentation should you prepare with the contract?
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
Question 4: What sort of contract would you use for the above transaction?
__________________________________________________________________________
__________________________________________________________________________
Question 5: When should the sellers disclosure (contract warranties) be made?
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
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UNIT 20 PARTICULAR CIRCUMSTANCES AFFECTING THE CONTRACT

This unit deals with the particular circumstances affecting the contract. Particular
circumstances can be described as any situation that could vary the nature of the standard
terms and conditions of the contract of sale.
[20.1] Blocks of flats

When selling blocks of residential flats that are not strata, or group titled the standard
Contract for Houses and Residential Land is used because the building is on one freehold
title. Additional documentation such as a Certificate of Registration of a Multiple Dwelling
from the local authority may be required, and the buyer or seller will probably require a
special condition dealing with it.
The agent should contact the local council authorities to determine all special requirements
that have to be met to allow the transfer of ownership of residential flats, duplexes etc. These
requirements will include provision for health and fire safety inspections.
[20.2] Company title schemes
There are still some company titles in existence, particularly on the Gold Coast. Kinkabool
and Paradise Towers in Surfers Paradise, Torbrek in Highgate Hill and Glenfiddoch in New
Farm are some of the better-known company title developments.
The agent should be cognisant that many older commercial buildings are also company title
schemes. If the title search on the unit shows no separate title issued for the unit, then it is
likely that the property is not regulated by the Body Corporate and Community Management
Act. These lots are instead controlled under the Corporations Act and are sold and
purchased as shares apportioned in a company.
The board of directors must approve a buyer in these circumstances. It is also important to
note that it is difficult to secure a loan over a company title lot as ownership is not of real
property but a share title only.
[20.3] Property sold by public auction

At public auction, the auction terms and conditions under which the bidders bid for the
property are commonly displayed and are commonly read out to the bidders prior to the
commencement of the auction.
Where property is sold under the hammer, these auction terms and conditions are usually
signed by the parties to the contract and annexed to the contract document to ensure the
terms and conditions form part of the contract of sale.
If the property is not sold under the hammer at auction it is passed in by the auctioneer. In
these situations a sale is then negotiated after the auction. If this occurs, the auction terms
and conditions would NOT be included as part of the contract, as the property actually sold
by private treaty and not by public auction. The agent would include the Property Occupation
Form 8 with the contract documents for a private treaty sale, if the property sells under the
hammer or within 2 business days after the auction to a registered bidder the cooling period
doesnt apply.
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[20.4] Special conditions

Most contracts contain clauses, commonly referred to as Special Conditions making the sale
of the property subject to the occurrence of some particular event. The clauses usually
stipulate that if the particular event does not happen, the contract will be terminated. Both the
REIQ Contract for Houses and Land and the REIQ Contract for Residential Lots in a
Community Titles Scheme have provision to include special conditions.
Special Conditions should only be used if it is necessary to modify or replace the standard
terms and conditions. For example, a property sold subject to finance or subject to a
building inspection should not have additional clauses inserted in the special conditions
section. Completion of the necessary information in the schedule of the contract would
activate these clauses.
If the buyer requests their own special conditions to be inserted on the Special Conditions
page, and they relate to Finance, Building Inspection or Pest Inspection, it is important not to
fill out those sections of the contract. This avoids the situation where there are two active
clauses relating to the same situation, and as such, can lead to uncertainty in the contract.
The agent should direct the buyer to seek independent legal advice concerning drafting
specific special conditions, and always ensure compliance with the Legal Profession Act.
[20.5] Commonly used special conditions
Special conditions may include:
Subject to a flood inspection
Subject to re-zoning
Subject to the completion of another sale
Sellers certificate of registration (units)
Subject to development approval
Subject to Foreign Investment Review Board approval
Subject to a soil test
Subject to registration of transmission of title by death
[20.6] Wording of special conditions

The specific wording of any special condition will vary depending on the particular facts of the
contract. For example, when selling a property for re-development, most developers have
their own set of special conditions which can be many and varied and are usually drafted by
their own solicitors.
Legal advice should be sought in relation to the drafting and use of all special conditions.
However, as a guide, a special condition should contain details of:
What has to happen or be done
Where located
Who has to do it
By when
To what standard
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Who is to benefit from the condition
Who may waive the condition
What happens if it is not done
The agent should make early contact with the sellers solicitor. If the agent is listing a
property and finds problems, the agent should ask the seller to have their solicitor draft a
clause to cover the situation and email it to the agent.
Special conditions are to be drafted before the contract is signed. Agents should never
tamper with a special condition already drafted by a solicitor.
Refer to the REIQ best practice fact sheet on at the end of this unit for important information
about special conditions and the Legal Profession Act 2001 (Queensland).
[20.7] Seller (vendor) finance
When a seller, rather than a bank or other financial institution, is providing finance to a buyer,
the contract requires modification. The agent should ask the sellers solicitors to modify the
standard conditions. The modifications will depend on the terms of the transaction.
Usually at settlement the seller gives the buyer a Memorandum of Transfer (the Transfer)
and the buyer, or the lender if finance is being provided, lodges that Transfer with Registrar
of Titles. If the seller is the person providing finance, the seller will need to collect the
Transfer at Settlement.
[20.8] Land Sales Act 1984
The provisions of the Land Sales Act 1984 (Queensland) regulates proposed allotments
which are sold off-the-plan before each individual title has been issued.
A proposed lot means that which will become a registered lot upon either:
Registration of a plan
Registration of a plan and recording of a community management statement for a

community titles scheme under the Body Corporate and Community Management Act
1997 (Queensland)
A registered lot means a lot shown on a plan registered under the Building Units and Group
Titles Act 1980 or South Bank Corporation Act 1989, or a lot included in a community titles
scheme under the Body Corporate and Community Management Act 1997.
The Land Sales Act applies to the sale of any of the following types of real estate:
New units and townhouses being presold before completion of construction
Vacant land that has not had its subdivision completed
Established buildings such as blocks of flats, motels and hotels, shops, commercial
space, and old factories that are being re-subdivided and sold
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[20.9] Off-the-plan sales

[20.9.1] Step 1 - Survey the land and draw the plan
The developer will appoint a surveyor and civil engineer to consider the best way to
subdivide the land into suitable lots. These professionals will draw a plan which will be
lodged with the development application to the local authority.
[20.9.2] Step 2 - Lodge the plan with council
The plan for the reconfiguration of a lot requires the approval, in whatever form of a local
government, before it can be registered or otherwise recorded; such as:
A plan of subdivision that, under section 50(g) Land Title Act, requires the approval of a
local government
A building units plan or group titles plan that, under section 9(7) Building Units and Group
Titles Act 1980 (Queensland), must be endorsed with, or be accompanied by, a
certificate of the local government
When the plan is lodged with the local council, the developer is required to undertake
additional research and reports to meet planning requirements. These reports may include:
An environmental impact study
Transport impact statement
Education and further infrastructure requirements
These reports will be lodged with the respective State Government Departments specialising
in these matters. Each State Government Authority will also receive a copy of the
development plan and will be required to give their approval for the development.
[20.9.3] Step 3 - Land can be promoted for sale
After the council approves of the engineering drawings, the project can be marketed for sale.
All sales must be subject to a separate Instrument of Title being issued.
The developer and their agent must also provide the buyer with a disclosure plan and
disclosure statement in accordance with the Land Sales Act and, if applicable, the Body
Corporate and Community Management Act. The disclosure statement must be given to the
buyer before the buyer signs the contract documentation.
[20.9.4] Step 4 - Sellers disclosures
When an agent or licensed developer sells a property off-the-plan where no separate
instrument of title has been issued, the buyer must be given a Disclosure Statement. If the
proposed lot is vacant land the buyer must be given the Disclosure Plan and Disclosure
statement. The Disclosure Plan must include the following:
A copy of any plan for reconfiguring a lot for the allotment forming part of a development
permit mentioned in section 8(1)(a) of the Act
The metes and bounds description of the proposed allotment
Contour maps of the proposed allotment
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Fill levels, and areas to be filled, as specified in the engineering drawings for the
proposed allotment
The Disclosure Statement must be signed by the buyer and seller and state the following:
(a) The buyers full name and address
(b) The sellers full name and address
(c) That the seller or sellers agent has given the buyer the disclosure plan for the proposed
allotment
(d) If a development permit mentioned in section 8(1)(a) is subject to conditions:
(e) That the buyer has
(i)
for an allotment capable of being staked by a cadastral surveyorinspected the

proposed allotment after it has been staked by the surveyor
(ii) for an allotment that is not capable of being staked by a cadastral surveyor
inspected the proposed allotment
(iii) been given the opportunity, and declined, to do an inspection mentioned in
subparagraph (i) or (ii)
(f) That the seller must give the buyer the registrable instrument of transfer for the
allotment, together with the other documents mentioned in section 10a(3), not later than
18 months after the buyer enters upon the purchase of the allotment
(g) That if the seller or sellers agent contravenes this section, other than subsection (3)(a),
(b) or (h), the buyer may avoid the instrument relating to the sale by written notice given
to the seller or sellers agent
[20.9.5] Step 5 - Significant variation notice

If there is a significant variation to the original lot being sold, then the developer must provide
the buyer with a Significant Variation Notice. This notice must be given within 14 days of the
developer receiving a final copy of the plan to be registered with the Titles Office. A
significant variation means, in the details between a disclosure plan and a survey plan a
variation of more than 2% in land area, 1% in linear dimension, in the details between a
disclosure plan and an as constructed plana variation of more than 500mm in height in
details of surface contours or fill levels.
[20.9.6] Step 6 - Delivery of plan
A final copy of a certified surveyors plan should be delivered to the buyer before they are
required to settle on the property.
[20.9.7] Step 7 - Finalisation of sale

Once the building and site works have been completed and the land or buildings have had
final certification by the local authority (or an authorised certifier) the surveyor will lodge the
plans with the Titles Office for registration and issue of separate title.
The buyer will usually settle no less than 14 days of being notified of issue of separate title.
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Question 1: You are listing a block of units for sale. The seller tells you that they are on one
title. What searches and documentation will you undertake?
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
Question 2: You are asked to list an older home unit for sale. When you conduct an
ownership search you discover that the property information does not exist on a real property
database. Can you explain the likely reason?
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
Question 3: Explain why some of the terms and conditions of a standard contract of sale
may be altered or omitted at auction?
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
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APPENDIX A - LEARNING ACTIVITY ANSWERS

ANSWERS TO [17.6] LEARNING ACTIVITY 17
Q1: What are some of the warranties
offered to a buyer in the contract of
sale?
The seller warrants all of the following:

There are no defects in the title
The present use is unlawful
There are no unrevealed encumbrances
or requisitions over the title
The affairs of the body corporate are as
stated in the sellers disclosure
Q2: Identify at least two potential defects

Potential defects in title or in property could
in title or property.
include:
An easement for drainage or other
purpose
A caveat preventing transferring of the
title
A right of way across the land
Road widening, resumptions, realignments, encroachments
An order under the Environmental
Protection Act including contaminated site
or an Environmental Protection Notice
Heritage Listing
Q3: You are listing a property for sale
that is affected by the Queensland
Heritage Act 1992 (Queensland). How
would you advise the client to handle
this situation regarding the
preparation of a contract of sale?
Make full disclosure on the contract of sale.

This should be presented as a special
condition drafted by the sellers solicitor.
Q4: You have successfully negotiated a

contract for the sale of a house. The
deposit is $50,000. The contract
settles in 30 days. The buyer and
seller have requested that the
deposit be invested in a special trust
account so that they can earn
interest. Can you do this? Please
explain your answer.
You cannot invest the deposit in a special

trust account as the contract period is only 30
days and the POA requires a contract of at
least 60 days before a special trust account
can be opened.
Q5: You are selling a home unit to an

investor who is a citizen of
Singapore. Can you sign them up on
an unconditional contract? Please
explain your answer.
No. This person may not be a resident of

Australia for tax purposes and will require
permission from the FIRB before they can
purchase in Australia. Therefore the contract
must be subject to FIRB approval.
ANSWERS TO LEARNING ACTIVITY 18 (excerpt from Contract for Houses and

Residential Land)
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Q1: What is a BCCM Section 206
Disclosure Statement and when
should it be signed?
The BCCM Disclosure Statement is an

information sheet containing essential
information regarding the affairs of the body
corporate. This Disclosure is required under
the Body Corporate and Community
Management Act to be the top sheet on a
BCCM contract of sale. However, the POA
Warning Statement must go on top in the
case of a residential transaction. The
disclosure statement should be signed prior
to the contract being signed.
Q2: List five items of information that

should be disclosed on the BCCM
Section 206 Disclosure Statement.
Any of the following items will be acceptable:

The name of the body corporate and CTS
number
The name of the secretary or managing
agent of the body corporate
Body Corporate Committee
Contributions and levies
Improvements on the common property
for which the buyer will be responsible
Information prescribed under regulation
module
Body corporate assets required to be
recorded on registrar
Q3: You are preparing a contract of sale

on a commercial office suite. Your
searches reveal that it is on a
community title scheme and that it is
strata titled. What documentation
should you prepare with the
contract?
The sales documentation for a commercial

strata title building is the BCCM Information
Sheet and Disclosure Statement and
compliance with the BCCM Act.
Q4: What sort of contract would you use

for the above transaction?
The contract to be used would be the

Contract for Commercial Lots in a
Community Titles Scheme.
Q5: When should the sellers disclosure

(contract warranties) be made?
The sellers disclosure or warranties should

be signed by the seller (or their agent if
authorised in writing) before the buyer signs
the contract.
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Q1: You are listing a block of units for
sale. The seller tells you that they are
on one title. What searches and
documentation will you undertake?
I would need to investigate if the flats are

registered with the local council. I would
request a Certificate of Registration of
Multiple Dwelling as well as compliance
certificates for Health and Fire Safety.
Q2: You are asked to list an older home

unit for sale. When you conduct an
ownership search you discover that
the property information does not
exist on a real property database.
Can you explain the likely reason?
The property information doesnt exist on a

real property database because it is likely the
title is held as a company title. Instead I
would have to search the companies register
for ownership (share portfolio) information.
Q3: Explain why some of the terms and

conditions of a standard contract of
sale may be altered or omitted at
auction?
If the auctioneer reads the terms and

conditions of sale of auction immediately
before an auction then those terms and
conditions shall apply to any subsequent
contract and can override or vary the terms
of the contract. Auction is where the term
caveat emptor applies, and the buyer
purchases the property as is and the terms
of sale give the buyer less opportunity to end
a contract than in a private treaty sale.
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APPENDIX B REIQ Fact Sheet New local laws applying to contracts of sale
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APPENDIX C REIQ Fact Sheet Legal Profession Act 2001
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Identify legal and ethical

requirements of property sales

v17 July 2016

[16.1] Sequence of signing documents by buyer

UNIT 17 TERMS OF CONTRACT

[17.1] Requisitions on title

PART 6: COMPLETION GUIDE FOR CONTRACTS

UNIT 18 THE REIQ CONTRACT FOR HOUSES AND RESIDENTIAL LAND

[18.1] Contract format

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[18.6] Buyers inspection

UNIT 19 CONTRACTS FOR RESIDENTIAL LOTS

[19.1] Community Titles Scheme

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[19.5] Sellers disclosure (implied warranties)

UNIT 20 PARTICULAR CIRCUMSTANCES AFFECTING THE CONTRACT

[20.1] Blocks of flats

APPENDIX A - LEARNING ACTIVITY ANSWERS

APPENDIX C REIQ Fact Sheet Legal Profession Act 2001

FORMS INCLUDED IN THIS MANUAL

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Application of the unit

Types and characteristics of land tenure systems are identified

Legislation regulating the sale of properties is identified in line

Information provided on the Certificate of Title is checked for

Types of property ownership are identified in line with

Legal requirements relating to the sale of property are identified

Requirements of ethical and conduct standards and consumer

Need for demonstrating effective communication strategies in

Listing opportunities are identified and assessed in the context

Methods of selling property are identified and assessed in the

Sale authority agreements are identified, completed and stored

Strategies for marketing property are identified and assessed in

Purpose and terms of statutory statements required to be

Contractual documents relating to the sale of property are

Process for settling the sale of property is identified in the

REIQ v17 July 2016

3 Identify roles and

Processes for receipt, recording, banking and release of deposit

Roles and responsibilities of agent in sale of property

Restrictions on agents purchasing property and sanctions for

Controls and sanctions on secret commissions are identified in

Entitlements and commissions for agents are identified and

Required skills and knowledge

Negotiation skills required for interacting with sellers and buyers

REIQ v17 July 2016

Required knowledge and understanding

Agent entitlements and commissions

Key principles of consumer protection and privacy legislation

Key principles and terminology of property law

Legislative limitations on agency practice

Offences and penalties under legislation

Anti-discrimination and equal employment opportunity

Consumer protection, fair trading and trade practices

Employment and industrial relations

Risk and risk management strategies

Trust funds and legislative controls on trust funds.

Legislation may include:

REIQ v17 July 2016

Freehold or fee simple

Relevant federal, and state or territory legislation and local

Anti-discrimination and equal employment opportunity

Consumer protection, fair trading and trade practices

Employment and industrial relations