A Comprehensive 2024 Handbook on the Property Occupations Form 6
In the world of real estate transactions, the Property Occupations Form 6 plays a crucial role. As seasoned conveyancers with vast experience in the field, we at Sunstate Conveyancing understand the significance of this document. In this comprehensive guide, we will walk you through all the essential aspects of the Property Occupations Form 6, providing you with valuable insights and information.
Understanding the Property Occupations Form 6 The Property Occupations Form 6 is a legal document that holds great importance during property transactions. It serves as a contract between the seller and the buyer, outlining the terms and conditions of the sale. With our extensive experience as conveyancers, we can offer you valuable expertise on how to navigate this form effectively.
Key Elements of the Property Occupations Form 6
a) Parties Involved: The Property Occupations Form 6 requires the identification of all parties involved in the transaction. As conveyancers with vast real estate experience, we can guide you through the process of accurately recording the details of the seller, buyers excluded from commission agreements if it is a sole listing, and any agents or representatives involved.
b) Property Description: Describing the property in detail is crucial for the Property Occupations Form 6. Our experienced conveyancers can assist you in accurately documenting the property’s location, boundaries, and any relevant encumbrances.
c) Listing or Reserve Prices: The Property Occupations Form 6 necessitates the inclusion of the listing price, listing price range or reserve price. With our expertise, we can ensure that these details are accurately stated, protecting your interests throughout the transaction.
d) Special Conditions: Special conditions may be included in the Property Occupations Form 6 to address kickbacks the selling agent might receive if they refer your services or any exclusions of the agreement if you chosen a sole listing.
e) Term of contract: The term of a sole or exclusive agency can be negotiated between the parties involved, with a maximum term of 90 days. After the sole or exclusive agency period, the parties may agree for the agreement to automatically revert to an open listing arrangement.
If the parties wish to extend the exclusive or sole agency beyond 90 days, such an extension can only be made within the last 14 days of the agreement.
In the case of an appointment lasting 60 days or more, it must remain in effect for a minimum of 60 days. If the appointment is for less than 60 days, either party may terminate it with a written notice of 30 days.
An open listing agreement does not require a specified end date and may be terminated at any time by either the agent or the client, provided it is done so in writing.
f) Expenses: The agent should outline any advertising and marketing expenses, as well as expenses for repairs and maintenance that they intend to recover from the client.
g) Commission payable: The agreed commission amount and the schedule for its payment (including GST) should be explicitly stated in the Form 6.
Types of Listings agreements
The Property Occupations Form 6 provides three appointment types to choose from:
1. Exclusive Agency: Under an exclusive agency appointment, the real estate agent retains the right to claim the agreed commission for selling the property, regardless of whether they were the effective cause of the sale. For instance, even if the seller sells the property independently or through another agent, the exclusive agent can still claim their commission.
2. Sole Agency: Similar to exclusive agency, a sole agency appointment allows the agent to claim commission if the property is sold by another agent. However, in the case of a sole agency, the agent cannot claim commission if the property is sold directly by the owner.
3. Open Listing: An open listing agreement permits engagement of multiple agents, but only the agent who is deemed the effective cause of the sale can claim the commission.
Signing the form 6
To be valid, each party and the agent must sign and date the Form. Additionally, the agent must provide a copy of the Form to the seller.
It is important to note that the above information is not exhaustive, and additional requirements may apply. For further guidance, it is advisable to contact the Real Estate Institute of Queensland (REIQ) or consult a solicitor.
Consequences of an Invalid Form Proper completion of the Form 6 is crucial. An incomplete form may affect the agent’s ability to claim commission for the property sale. If you have any doubts about the validity of your agreement, it is recommended to seek legal advice.
As the leading conveyancers with extensive experience in real estate, we understand the intricacies of the Property Occupations Form 6. By utilizing our services, you can navigate the complexities of this document with confidence, ensuring a smooth and successful property transaction. Trust Sunstate Conveyancing to provide you with unparalleled expertise in conveyancing and real estate matters.
Frequently Asked Questions (FAQ) –
1. What are the different types of appointments available in the Property Occupations Form 6?
• Exclusive Agency: The agent can claim commission even if the property is sold by the owner or through another agent.
• Sole Agency: The agent can claim commission if the property is sold by another agent but not if sold by the owner.
• Open Listing: Multiple agents can be engaged, but only the agent who is the effective cause of sale can claim commission.
2. Can the appointment term be negotiated?
• Yes, the term of a sole or exclusive agency can be negotiated between the parties, up to a maximum of 90 days.
• After the sole or exclusive agency period, the agreement can revert to an open listing automatically if agreed upon.
3. Is there a possibility to extend the exclusive or sole agency beyond 90 days?
• Yes, an extension can only be made within the last 14 days of the agreement.
4. Can the appointment be terminated before the agreed term?
• For appointments of 60 days or more, the appointment must stay in place for at least 60 days. Otherwise, it may be terminated in writing with 30 days’ notice by either party.
• An open listing agreement can be terminated at any time in writing by either the agent or the client.
5. Are there any requirements regarding advertising and marketing expenses?
• The agent should specify any advertising and marketing expenses, as well as expenses for repairs and maintenance that they wish to recover from the client.
6. How should the commission payable be handled?
• The agreed commission amount and the payment schedule should be clearly stated in the Form.
7. What is the importance of signing the Form 6?
• The Form must be signed and dated by each party to be valid. Additionally, the agent must provide a copy of the Form to the seller.
8. Are there any additional resources or sources of information?
• For more information, it is recommended to contact the Real Estate Institute of Queensland (REIQ) or seek advice from a solicitor.
9. What happens if the Form 6 is not filled out correctly?
• An incomplete form may impact the agent’s ability to claim commission for the sale of the property. It is advised to seek legal advice if there are concerns about the validity of the agreement.
10. What happens if I sign two exclusive agreements with two different agents?
• You could be liable to pay full commission to both agents which could cost you thousands.
This is general advice only, for specific legal advice speak to your legal representative or conveyancer.