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R E I Q J O U R N A L
| J U N E 2 0 1 6
P A G E 4 4
WORDS BY ANDREW PERSIJN, SENIOR ASSOCIATE, CARTER NEWELL LAWYERS
A Refresher Course on the
Disclosure of Benefits
In the December / January edition of the REIQ Journal, we examined the new versions of the
Property Occupations Form 6 – Appointment and reappointment of a property agent, resident
letting agent or property auctioneer (
Form 6
), and the Property Occupations Form 8 – Disclosure
to prospective buyer (
Form 8
), released by the Office of Fair Trading on 1 October 2015.
In this edition, we focus on the
benefits that are required to be
disclosed in the Form 6 and
Form 8 by both sales agents
and property managers.
Sales Appointments
Pursuant to s 157 of the
Property
Occupations Act 2014
(Qld) (
Act
),
it is mandatory for a sales agent to
disclose to prospective buyers, any
relationship (including the nature of
the relationship) that the agent has
with an entity (
referred entity
) to
whom the agent refers the buyer for
professional services associated with
the sale of the property.
The agent must disclose whether he
or she derives or expects to derive a
benefit from a referred entity and, if
so, the amount or value of the benefit.
The agent must also disclose the
amount, value or nature of a benefit
an entity has received, receives or
expects to receive in connection with
the sale, or for promoting the sale, or
for providing a service in connection
with the sale of the property.
The Form 8 assists by making the
disclosure process straightforward
for the agent and includes an
acknowledgement for the buyer,
which effectively places an onus on
the buyer to confirm that the Form 8
has been explained to them and that
they have understood all disclosures
made by the agent and the effect (if
any) of those disclosures.
The Form 8 Notes document
provides some guidance for
agents in clarifying the wording
of the Act in relation to what is
required to be disclosed and
clearly details what constitutes
a ‘
relationship
’ and a ‘
benefit
’,
and what an agent needs to disclose
and does not need to disclose.
Relationships
Examples of the ‘
relationships
’ that
may need to be disclosed, include,
but are not limited to:
• A family relationship;
• A business relationship, other than
a casual business relationship;
• A fiduciary relationship; and
• A relationship in which one person
is accustomed, or obliged, to act
under the directions, instructions,
or wishes of the other.