Under the new law that has been passed couple of days ago, real estate agents are no longer obliged to reveal their commission rates to their buyers. Furthermore, they are no longer obligated to follow an extreme commission limit.
The modifications made in the Property Occupations Act and its associated regulations will surely affect how buyers and sellers make a deal, since the agents are no longer required to reveal their fee to the prospective buyers.
With the latest changes, agents can now ask any amount as commission fee from the seller as the maximum commission limits have been dissolved. These changes will also affect how agents participate in an auction as they are no longer required to issue price guides.
The goal of these changes, according to Jarrod Bleijie, Queensland’s attorney general, is to get rid of red tape as the changes will also include stricter disclosure policy, elimination of warning statement written in the contract and longer agency agreements. He said, “Contracts can often do more harm than good, with many people either skimming over important information or in some cases not reading the finer detail at all”.
According to Jarrod’s statement, these changes will greatly protect Queenslanders in purchasing a house. When the process of buying a house becomes simpler, people living in Queensland who want to invest in a house will be secured with the changes as stated in the Act.
On the part of real estate agents, the changes are well-respected. In fact, the president of Real Estate Institute of Queensland, Anton Kardash, considered the changes, specifically the price guide ban, as a way to promote transparent relationship between the buyer and the seller. For him, it is a win-win situation for consumers as they will enjoy better transparency when they purchase a property at an auction.
However, the changes may also hurt the merchants, according to Tony Panos, who is a real estate coach. He told the Real Estate Business publication that buyers might be disappointed if they would not have a way to know whether or not such property is in their price range. “They would stay away from properties where they were given no idea at all of the selling price. So, I think it would be against the vendor’s best interests,” Tony commented.
Given previous allegations of developer support for the Campbell-Newman government one has to question who benefits most from these changes