Government to Deregulate the Queensland Real Estate Industry.

Government to deregulate the Queensland Real Estate Industry.

Property Sales Brisbane…How Much is Too Much?

The Honourable Paul Lucas is proposing to deregulate the property industry by removing the prescribed maximum fee agents can charge when selling residential property in Queensland.

Government to Deregulate the Queensland Real Estate Industry.

Up until now, an agent is confined to a fee of 5% on the first $18,000 and 2.5% of the balance of the sale price, or anything under this cap which is agreed upon between the parties.

The effectiveness of this policy has been evidenced by several real estate companies which promote cut price commissions. This is now to change under the proposed new legislation by removing the cap, thereby enabling an agent to charge whatever is agreed.

He claims this will bring our State into line with other States, yet he has failed to point out that the other States don’t have a significant component which he plans to introduce with his new bill.

This is a facility for property sellers to arbitrarily challenge an agent after their property has been sold by claiming they have paid too much commission. This will be in spite of a written agreement, a Form 22a, which has been agreed to by, and signed by both parties, the Sellers and the Agent.

The proposed new provision virtually makes an agency appointment worthless from an agents point of view as there is no surety of payment for a job done once a property has been sold.

Most real estate sales are complex transactions, always take more work than is initially envisaged with a huge amount of time expended by a sales person, most of which is unseen by a seller. It seems this can be the basis for a complaint

Negotiation is the key to the proposed change and if it is to be a genuine bill, the agreement should stand. Bear in mind the Seller has the right to engage who they like and can always withdraw their property from sale if they are dissatisfied with the service.

An analogy of the proposed situation could be.

Lets say an employee is working for a wage and doing what they think is a good job and produce a result by weeks end. On Friday afternoon the boss comes up to he or she and says I don’t think you worked hard enough doing what you did so I am not going to pay you the agreed amount, I will pay you less. Would you be happy with that?

Let’s suppose that an employee of the people, a minister for example was to sign off on some  government expenditure and the job  was later found to be wanting and the money wasted. An example could be the Health Department and a pay role contract.

What if it turned out to be a failure and cost a huge amount to remedy. Would that mean the cost of the reparation could be deducted from the ministers salary by the tax payers because they were unhappy with the outcome.

I don’t think so!

So Mr Lucas, deregulate the industry by all means, We don’t have a problem with that, but if you’re going to do it, do it properly, you will then have our support.

Property Sales Brisbane

Real Estate Brisbane

Previous post:

Next post: