What is a Form 6 in Real Estate? | Understanding Property Contracts on the Gold Coast in Queensland
A Form 6 in Real Estate refers to a Property Occupations Form 6 agreement. It is a critical document you, as a property owner, will encounter when engaging the services of a real estate agent in Queensland.
This form, officially known as ‘Property occupations Form 6 – Appointment and reappointment of a property agent, resident letting agent or auctioneer‘, serves as the contract between you and your agent, outlining the terms of their appointment, their responsibilities, and the extent of their authority to act on your behalf.
It is essential that you thoroughly understand the specifics of this agreement to ensure your property affairs are handled as you expect.
In Queensland, the Real Estate Institute of Queensland (REIQ) commonly provides a Form 6 agreement to real estate agencies.
A Form 6 in real estate sets out the services the agent will provide, the fees or commissions for their services, the duration of the appointment, and specific terms and conditions relevant to your arrangement.
Form 6 in Real Estate Qld: A Contractual Relationship
Entering into a contractual relationship with a real estate agent without a clear, well-defined agreement can lead to misunderstandings and disputes.
Taking the time to review and negotiate the details within a Form 6 can protect your interests and help maintain a positive, professional relationship with your agent.
Whether you are selling, buying, or managing rental properties, accurately completing and understanding a Form 6 in real estate is vital.
It can be beneficial to consult a legal expert or a professional advisor to help you understand all the clauses and implications of this agreement.
Remember, this is a legally binding contract, and being well-informed will put you in the best position to make decisions that align with your real estate objectives.
Agreement Fundamentals
Navigating the complexities of Form 6 agreements is essential for agents and parties involved in property transactions. By understanding the specifics, you can ensure compliance and protection throughout the process.
Definition of a Form 6
A Form 6 in Real Estate is a contract that authorises a real estate agent to act on behalf of a property owner in the sale of property in Queensland, Australia.
It’s paramount that this form be completed correctly, as it details the terms on which the agent is appointed, including the scope of the agent’s authority, the commission rates, and the duration of the appointment.
Legal Framework of a Form 6 in Real Estate
The legal framework for Form 6 is determined by the Property Occupations Act 2014 and the Property Occupations Regulation 2014, which set out the necessary conditions for these agreements.
It’s essential to ensure that all legal requirements are met, including providing warning statements and a clear outline of the conditions.
The Appointment of a property agent, resident letting agent, or property auctioneer (Form 6) must comply with regulatory standards, including the specifics outlined in the legislation, to avoid legal missteps.
Understanding the requirements for a valid Form 6 is crucial for sales agents, particularly to maintain the integrity of the agreement and uphold professional standards.
This entails meticulous attention to detail, precise declarations, and adherence to guidelines for appointments and responsibilities.
Preparation and Execution of a Form 6 in Real Estate
Before signing a Form 6 agreement, ensure that the document is thoroughly drafted by your Real Estate agency and that all parties understand the execution process.
Proper witnessing of signatures is crucial to validate the agreement.
Drafting the Agreement
To draft your Form 6 agreement, start by outlining the essential terms, responsibilities, and obligations.
It’s imperative to include clear language and address any specific legal requirements pertinent to the agreement.
You may need to consult a legal professional to verify the document’s completeness and compliance with Australian law.
- Essential Clauses: Be sure to incorporate clauses that specify the service being provided, fees, and the duration of the agreement.
- Details: Include all relevant details such as the names of the parties, ABN numbers, and any unique conditions that may affect the agreement’s application.
Execution Process
Executing the Form 6 agreement properly is vital for it to be legally binding. Each party needs to sign the agreement in the presence of a witness, who must also sign.
- Arrange a Meeting: Schedule a time for all parties to come together and sign the document.
- Identification: Make sure each signer has valid identification to provide to the witness.
- Review: Before signing, each party should review the document thoroughly to ensure understanding and agreement on all points.
Witnessing Signatures
The signatures on your Form 6 agreement must be witnessed to attest to the signers’ identities and the voluntariness of their actions.
- Qualifications of Witnesses: Witnesses should be over 18 years of age and not party to the agreement.
- Documentation: The witness should also print their name, address, and date next to their signature to properly document the witnessing.
Remember to follow these steps to ensure that the Form 6 agreement is prepared and executed in compliance with Australian legal standards.
Terms and Conditions
The Terms and Conditions section lays out the legal and financial obligations you’ll be required to adhere to under the Form 6 agreement.
It includes details on payments, the duration of the agreement, procedures for termination, and the handling of confidential information.
Payment Terms
Your payment obligations are detailed in this subsection. You must ensure timely payment as specified in the agreement:
- Invoice Frequency: Invoices are to be issued monthly.
- Payment Due Date: Payments are due within 30 days of the invoice date.
- Late Payment Penalties: Interest on overdue payments is calculated at a rate of 10% per annum.
Duration and Termination
This subsection outlines the period for which the agreement is valid and the conditions under which it may be terminated:
- Effective Date: The agreement is effective as of the date of signing.
- Termination Notice: Either party may terminate the agreement with a 30-day written notice.
- Termination for Cause: Immediate termination is allowable for breaches of agreement.
Confidentiality Clauses
Your commitment to handling all confidential information with care is outlined here. Breaching these terms can lead to legal consequences:
- Disclosure Restrictions: You must not disclose confidential information to any third party.
- Duration of Confidentiality: The obligation to maintain confidentiality persists indefinitely, even after termination of the agreement.
Dispute Resolution
In your Form 6 agreement, clear procedures are outlined for resolving disputes. This ensures efficient and fair resolution, safeguarding your rights and interests.
Governing Law
The agreement is governed by the laws of the state or territory in which it was signed. You should be aware of these laws, as they govern the rules and regulations for the dispute resolution process.
- State/Territory Law: Understand the specific laws of your state or territory that apply to the agreement.
- Jurisdiction: Agree on the courts or tribunals that will have jurisdiction in case of a dispute.
Dispute Escalation
Before legal proceedings are initiated, a dispute typically escalates through several stages. This structured approach aims to resolve conflicts in a mutually amicable manner.
- Negotiation: An attempt to resolve the dispute through direct negotiation between the involved parties.
- Mediation:
- Mediator: An independent third party often helps facilitate the negotiations.
- Resolution: If the mediation results in a mutual agreement, the dispute is considered settled.
- Arbitration or Litigation: Should mediation fail, the dispute may then be referred to arbitration or the court system.
Amendments and Modifications of a Form 6 in Real Estate
When dealing with a Form 6 agreement, you may need to alter its terms or conditions. Understanding when and how you can make such changes is crucial to maintaining the agreement’s legality and enforceability.
Changing Terms
To change the terms of a Form 6 agreement, you must follow a structured process. Any alteration to existing terms must be:
- Mutually agreed upon: Both parties must consent to the changes.
- In writing: The amendment should be documented to ensure clarity.
Below is a table that outlines different aspects you ought to consider when changing terms:
| Aspect to Consider | Importance |
| Reason for Change | Establishes the necessity for the amendment |
| Impact on Agreement | Evaluates how the change will affect the overall contract |
| Approval Procedure | Outlines the steps for obtaining mutual agreement |
Valid Amendments
For an amendment to be considered valid, it must adhere to specific criteria:
- Consistency with the original contract: The amendment cannot contradict the fundamental purpose and terms of the original agreement.
- Legal Compliance: The amendment must align with relevant legislation and principles of contract law.
Validity depends on the following:
- Documented approval: A written record of all parties’ consent is essential.
- Signatures: The amendment should have the required signatures to be legally binding.
Example of a REIQ Completed Form 6 for Real Estate in Qld
Example-Completed-Form-6-REIQ-Residential-Sales-Schedule-and-DISA_REIQ_
THIS IS HOW YOUR JOURNEY TO A SUCCESSFUL GOLD COAST PROPERTY SALE STARTS
My simplified guide below will take you through a 20-step process for selling your property anywhere on the Gold Coast;
I proudly sell homes across the entire coast.
1. PREPARING YOUR GOLD COAST PROPERTY FOR SALE + SOME OF THE LEGAL REQUIREMENTS
- Tidying gardens and decluttering everything inside and out.
- All homes for sale, are legally required to have hardwired photoelectric, interconnected smoke alarms.
Non-removable 10-year battery smoke alarms can be installed as an alternative.
- By law, you are required to complete a pre-contractual seller’s disclosure statement: generally related to limitations, restraints, or defects in the property title, such as easements, covenants, leasing, zoning, etc.
- A pool safety certificate is also required if you have a swimming pool or if the property has a shared swimming pool (Body Corporate).
2. COMPARATIVE MARKET ANALYSIS REPORT FOR YOUR GOLD COAST PROPERTY
After showing me around your property, I will provide you with a Comparative Market Analysis (CMA) report. This is a detailed, legally required analysis of your home’s market value.
The CMA is based on recently sold and for-sale properties similar to yours in the immediate area. I will need to view your home to prepare this report.
3. SETTING A MARKETING BUDGET FOR YOUR GOLD COAST HOME
The third step in selling your home is to create a marketing budget.
By law, this must be based on actual costs.
There are various marketing options to consider, such as:
– Internal, External and Drone Photography.
– Property and House Plans show potential buyers the exact layout of your home and property.
– Internet Advertising on platforms such as RealEstate.com.au, Domain.com.au, Facebook.com, Instagram.com, etc.
– For Sale Sign on the street is still essential to attracting potential buyers. Even though many buyers start their search online, they often drive around neighbourhoods to see what’s available.
A simple fact: Not having a For Sale sign can significantly reduce the number of people who see your property and may be interested in buying it.
4. PREPARING AND APPROVING THE FORM 6 AGREEMENT WHEN SELLING A GOLD COAST PROPERTY
A Form 6 Agreement is a document provided by the Queensland State Government. It outlines all relevant details of the property sale, including the marketing budget.
Our administration team will prepare this form for you and send it for your review and approval.
5. PAYING THE MARKETING BUDGET FOR YOUR GOLD COAST PROPERTY
Once you have approved the Form 6 Agreement, the next step is to pay for the marketing budget that you have chosen.
6. STARTING THE ADVERTISING PROCESS
Once your payment is received, the advertising campaign will commence.
Advertising strategies will align with the choices you made within your marketing budget.
7. MONITORING MARKET RESPONSE
If your property hasn’t received offers within 30 days, don’t assume there’s no interest.
It often means the price isn’t aligned with what buyers are willing to pay at this time.
This is your signal to review and adjust your pricing strategy so your home remains competitive and receives the attention it deserves.
8. ARRANGING BUYER VIEWINGS
When buyers express interest in your property, viewings will be arranged to allow them to see your home in person; you need to be away from the property during these viewings.
This helps potential buyers feel relaxed and visualise themselves as the new owners, thereby forming a deeper connection with your property.
9. CONSIDERING A BUYER’S OFFER
When you receive an offer on your home, it means a buyer is serious and ready to move forward at a certain price.
This is a key moment in your selling journey. Take the time to go over the offer carefully.
Look beyond the price; check the terms, conditions, and settlement timeframes. Make sure it works for you before accepting, countering, or declining.
10. ACCEPT, COUNTER, REJECT
When an offer is presented, you will need to respond by accepting, countering, or rejecting it.
Accepting locks in the agreed-upon price and terms.
Countering proposes changes and initiates further negotiations. If countering, present revised terms clearly; open, respectful communication is key for a smooth sale.
Rejecting means the offer is unacceptable; in this case, respond promptly and professionally, explaining your reasoning for the decision.
11. YOUR LEGALITIES
When you finally accept an offer, you will engage your conveyancer or solicitor to facilitate the legal requirements to complete the sale.
If you are part of a Body Corporate, you will need to provide a Disclosure Statement from them.
Your solicitor will use PEXA to settle your property. Part of the process requires Verification of Identity. Also, anyone selling a property must complete an ATO Clearance Certificate.
12. BUYER’S DEPOSIT
The buyer’s deposit is a crucial step in the property purchase process; it will be held in the agency’s Trust account.
This is a tangible expression of the buyer’s commitment to purchase your property.
13. BUILDING AND PEST INSPECTIONS
Typically, a buyer will arrange for a building and pest inspection report to be completed, usually within 14 days of the contract date.
Additionally, they may have the contract subject to finance, which is generally applicable for 21 days from the contract date.
14. COMPLETING YOUR GOLD COAST PROPERTY SALE
Based on the outcome of the building and pest inspection report, as well as any finance being sought, the buyer will proceed with their offer or withdraw it.
At this point, the sale either falls through or becomes unconditional.
15. LOOKING FOR YOUR NEW PROPERTY
If the sale becomes unconditional, it is time to start looking for a new property. Remember, there is no need to rush.
It is essential that you take your time, as this needs to be a very considered purchase.
Your new home is of substantial value and can be costly if you change your mind. Something you may want to investigate is Short-Term Bridging Loans.
16. ALTERNATIVES YOU SHOULD CONSIDER
An alternative to seriously consider when deciding where to live between selling and buying is renting while you look for a new property.
Renting for a short period gives you breathing room; it allows you time to clear your head, make a confident, considered decision, and ultimately buy where you truly want to live, with no pressure or panic.
17. TIME FOR YOU TO MOVE
Leaving your home opens doors to a new chapter full of new beginnings. Embrace the excitement of a fresh start and cherish the memories you’ve made.
Every box you pack brings you one step closer to a new adventure full of possibilities that lie ahead.
18. YOUR SALE CONCLUDES
The culmination of the property sale is settlement; it marks the transfer of the property to the new buyer.
As the final chapter concludes, this marks a sense of achievement: your property has now SOLD.
19. YOUR FUTURE OPTIONS
If you have chosen to rent, you will continue to look for and eventually purchase a property, apartment, or perhaps even buy land and build; now there’s something to consider.
20. TIME TO UNWIND AND MAKE YOUR NEW HOME YOUR OWN
As you unpack and furnish your new home, embrace the gradual process of creating your haven.
Enjoy the transformation, one room at a time.
Relax in the tranquillity of your surroundings and immerse yourself in the gentle sounds of your new neighbourhood.
Explore the nearby parks and cafes; enjoy the unique charm of your new community.
Remember, settling in is a journey in itself; it’s not a race. Embrace the process of creating a home that reflects your unique style and personality.
Whether you’re downsizing, relocating or just ready to move on, I’ll guide you through every step of selling your Gold Coast home with confidence and ease.
Navigating the intricacies of selling your property can be complex, but it doesn’t have to be.
My 20-step guide provides a simplified general overview; as you would naturally expect, your steps may vary.
Author – Craig Douglas
Are you ready for a conversation about selling your Gold Coast home?
Let’s get you Selling
LET’S GET YOU SOLD
Craig Douglas 0418 189 963
Professional | Knowledgeable | Experienced
These are just some of the suburbs that I proudly sell homes in:
Ormeau Hills
Please Note: The information contained in this document is for general information purposes only and does not constitute legal advice. The laws and regulations governing the sale of property in Queensland are complex and constantly changing. It is important to seek the advice of a qualified property lawyer or conveyancer before making any decisions about the sale of your property. This document does not take into account your individual circumstances and may not apply to your situation. By reading this document you agree that you have not relied on the information contained herein and that you will seek independent legal advice before taking any action.
This page was proudly created by Craig Douglas, your local independent Gold Coast real estate agent, working for a Boutique Real Estate Agency. Selling residential and commercial properties, from those that are awe-inspiring, through to a diamond-in-the-rough, otherwise known as a “renovator’s delight“.
I negotiate and sell on behalf of property owners who want to get the best possible price with the least amount of hassle. Let’s talk about the process of selling your property over a coffee to get you started – 0418 189 963
