NEW LEGISLATION COULD COME INTO EFFECT AS QUICKLY AS THE END OF THIS YEAR
Changes to the current legislation are being rushed through Parliament in a bid to make the sale of property in Queensland similar to those procedures that our Southern States practice.
The Department of Justice and the Attorney General (hereinafter referred to as DJAG) have been working to change our current legislation to eliminate the current Disclosure Statement and replace it with a Body Corporate Certificate that must be prepared by the Body Corporate Management for the Scheme.
This change to the legislation has come out of the blue and the cut off date to object to the change was all but upon us before we were even aware of what was being proposed.
Many of the private Search Agents in and around South East Queensland have united together and have formed an Association to object strongly to the proposed change in the legislation as a group. Whilst the legislation has all but passed, we are seeking an amendment to the Bill to allow Search Agents to continue to give specialised service to Real Estate Agents and be recognised as a legal provider of these new Body Corporate Certificates.
Whilst our Search Agents Association did have an opportunity to voice our objections at the hearing, our major points of concern were brushed aside by DJAG.
DJAG made the comment that they are not aware that there is any problem with the Body Corporate Managers providing the Disclosures as they have not received any complaints.
It seems that, reading between the lines, DJAG were totally unaware that private Search Agents exist let alone the details of the unique service they provide, giving Agents an option to obtain Disclosure & Implied Warranties without the hassle of dealing with Body Corporate Managers, often having to wait up to a week to receive the documents for a Contract.
WHAT THIS MEANS IS THAT if the Bill in its current format is passed, the service we currently provide to you will cease to exist and if a Lot Owner wishes to sell their property, they will have to apply to their Body Corporate Manager to provide the Body Corporate Certificate before they list their property for sale. Owners and Real Estate Agents will no longer have an option to avoid dealing with Body Corporate Managers directly to get what is needed for a Contract of Sale.
We believe that the REIQ supports our arguments, however this support has not been recognised by those making the final decisions.
If we do nothing, then you, as an Agent, will face many challenges to comply with the new legislation. The way the new legislation reads is that the Vendors will have to apply to their Body Corporate Manager to get the documents they need before they list their property for sale, but lets face it, many owners just want someone else to do it for them and then the task falls to the Selling Agent.
We seek your support to have the Bill amended to allow private Search Agents to provide the service that they currently provide and continue to allow freedom of choice in who can or cannot provide these proposed Certificates.
The second reading of the proposed Bill is set to take place on or about the 9th of May.
If you feel as strongly about this as we do, we are asking our clients to lobby the Attorney General, Yvette D’Ath’s office directly, as it could very well have some impact.
Redcliffe@parliament.qld.gov.au
May we suggest that in your email to the Attorney General, outline to her what difference our service has made to your business. Point out to them that even though the owners are supposed to provide a Disclosure Statement from the Body Corporate Managers, that this task inevitably falls to the selling Agent and it becomes your problem. Explain the issues you have faced in the past in dealing directly with Body Corporate Managers, the delay experienced, the sales lost. Whatever your experience has been. If you are not sure what to write in your email, I have given some ideas below.
TIME IS OF THE ESSENCE and this needs to be done before the second Parliamentary reading on the 9th of May.
EXAMPLE EMAIL:
I have just become aware of the proposed changes in legislation regarding Vendor Disclosure for the sale of property in a Body Corporate Scheme.
We have been using a private Search Agent to provide the current Disclosure Statements for many years to eliminate the problematic issues involved in having owners provide the required documents from their Body Corporate Manager. In our experience, the task to obtain the Body Corporate Disclosure falls to the selling Agent.
The Search Agent that we use takes this onerous task on board and can provide the documents we need efficiently and quickly and often at a cost much less than the fees charged by the Body Corporate Managers. The Service that our Search Agent gives is a valuable and essential service to assist in the sale of property that is part of a Community Title Scheme.
We urge you strongly to continue to allow Search Agents to provide the new Body Corporate Certificates to avoid the sale of property process becoming once again, delayed, uncertain and an onerous experience all round.
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Please join us and lobby the Attorney General to include Search Agents as a legal provider of the new Body Corporate Certificate to give Agents and owners freedom of choice.
Should you have any queries regarding the above, please do not hesitate to contact me.
Jan Davies
STRATA ASSIST