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P A G E 2 3

R E I Q J O U R N A L

| J U N E 2 0 1 6

A G E N C Y A D V I C E

How to correctly complete the

Form 6 appointment form

Any agent listing real estate for sale, letting and leasing in Queensland

is strictly regulated by the Property Occupations Act and Regulation..

This includes the use of a mandatory

government Appointment of Agent

form, and strict guidelines on the terms

and conditions of the appointment

of the agent. The PO Form 6 is the

mandatory form prescribed by the

Property Occupations Act which is

required to be completed when listing

a property for sale or rental with a

property owner. Agents must ensure

that all sections of the Form 6 are

completed in clear and understandable

language, expressing the specific

terms, conditions, obligations and

commitments of the parties to the

agreement. A copy of each final

agreement must be furnished to each

party upon their signing and initialling.

The Property Occupations Act

requires the agent to provide to

the client information about the

commission payable for services. The

agent must inform the prospective

client, who could be either the seller,

landlord or a property buyer, as the

occasion arises, that the commission

is negotiable prior to signing the

appointment of agent form. The

agent must specifically bring to the

client’s notice the information in

the form of the appointment about

the implications of different listing

types (i.e. of an open listing; an

exclusive agency; and a sole agency;

and the difference between each

type of listing). If the agent fails

to do so before the appointment is

signed, such appointment of agent

is rendered invalid. Also, if the

appointment is not in the correct

form (i.e. the Form 6 as per legislative

requirements) it is considered

ineffective from the time it is made.

The statutory document Property

Occupations Form 6 is your ‘core

document’, containing the basic

range of information required for

appointment. It is somewhat lacking

in vital information to permit the

agent to carry out the services for

which it is designed. As a result, the

REIQ produces appropriate schedules

for these respective appointments to

provide for common circumstances

and instructions relating to each

type of property listing. There are

five specific schedules developed by

the REIQ available for the Form 6,

including schedules for Residential

Sales, Residential Property

Management and Holiday Letting

(Resident Letting Agent).

Correctly completing a valid Form

6 is crucial for any real estate agent

to claim commission on sales or

property management activities.

Unless an agent has the signed

appropriate appointment (correctly

completed) in writing:

• A contractual arrangement

may not exist at law, and the

transaction between the agent and

the client may be invalid

• The agent may risk being

prosecuted for trespassing

• The agent’s public liability and

professional indemnity insurances

may be jeopardised for that

particular transaction

• The agent may be in breach of the

law and may be prosecuted.

Registered sales and property

management staff must understand

that a property owner (the client),

does not appoint them to act as an

agent, but rather, the client appoints

the licensee of the agency as the

agent (who holds either a corporate

licence or, when there is no corporate

licence, is the principal licensee

of the real estate agency). Under

the provisions of Section 89 of the

Property Occupations Act, only a

licensed agent who is authorised

under the agent’s licence to perform

that activity, and who is properly

appointed by the client to be charged

with the reward or expense, is

entitled to sue for, or recover or

retain, a reward or expense for the

performance of an activity as a real

estate agent.

Completed examples of each Property

Occupations Form 6 with the various

REIQ schedules are available on

the REIQ Members Resources page

(accessed at

www.reiq.com )

and at

www.realworks.com.au

for Realworks

subscribers. The REIQ also offers

ongoing training in the completion

of crucial documentation throughout

Queensland. Further details can be

found at

www.reiq.com/courses-

training/specialised-courses

. If any

REIQ individual or agency members

have specific questions about

completing the Form 6, remember that

the FREE REIQ Agency Advisor and

the Property Management Support

Service team are just a phone call away

on 3249 7347.