MEDIA RELEASE 4 March 2002
Issued by Queensland Resident Accommodation Managers Association Inc
Resort News Article
Managed Buildings and the PAMD -
Holiday Guests have Rights Too

                       

While QRAMA continues its work to respond to the review of the Body Corporate and Community Management Act and its amendments and the issues surrounding the licensing of body corporate managers, further issues with legislation continue to impact on the industry. 

QRAMA has been pleased with the results of the ongoing liaison with the Office of Fair Trading and the further practical changes being made to streamline the administrative process with forms and requirements. 

Since the GST holiday accommodation input tax issue, the Ansett collapse, the export  market development grant cases and the PAMD review, there is now a better understanding of the economic and services contributions made by managed units to the Queensland and Australian tourist industry. 

Governments are now more aware and conscious of the extent of holiday accommodation and the specialist services provided by resident accommodation managers.  

Conflict between selling agents and restricted letting agents has caused problems for agents, guests, owners and resident managers and a clear understanding of the rights and objectives of the parties involved needs to be promoted. 

Owners of managed units have a right to sell their property at any time. This is done by appointing a selling agent. 

However, the rights of the selling agent to inspect the property and the requirement of the letting agent to attract guests to generate income for the owner and the letting agent can obviously become conflicting objectives. 

Under the Real Estate Agency Practice Code of Conduct in the PAMD Act, clause 37 requires the real estate agency (selling agent) to immediately give written notice of their appointment to sell to any agent (restricted letting agent) responsible for the management of the property. 

This step is an important new requirement in that no inspection should be arranged until this written notice is received and the selling agent is identified. 

Now while most owners as a courtesy will inform letting agents of their plans, at times this does not happen. 

We have asked QRAMA members to make sure that they have made owners aware of all problems, including this activity. 

Where the unit has permanent tenants, the position of inspections is addressed by the requirements of the Residential Tenancies Act. 

The Act requires the selling agent to provide to each of the letting agent and the tenant a copy of the RTA Form 10 “Notice of Lessors Intention to Sell the Property” on receiving the listing. The Act further requires an RTA Form 9 “Entry Notice” to be provided to the letting agent and the tenant for each inspection with a prospective buyer. Failure to comply under this Act attracts a penalty of $1500 if prosecuted by the RTA. 

But the sale process for holiday units is quite different as there is no process under any legislation to interrupt the holiday guest. 

The holiday guest has the right to a holiday free of hassles of property inspections.  

The letting agent, selling agent and owner must reach satisfactory arrangements regarding inspection times and possible sale. 

Holiday guests have made successful claims for compensation against letting agents because of their lack of pleasure and enjoyment resulting from interruptions for property inspections. 

On another issue, QRAMA members have raised with the Office of Fair Trading the issue of real estate agents contravening the PAMD Code of Conduct by soliciting letting appointments from owners when the real estate agent should know there is an appointment in force with another agent (resident manager), in contravention of Code of Conduct sections 12 and 5. 

There have recently been cases at Maroochydore, Mooloolaba and Bribie Island where real estate agents have sought  appointments clearly in breach of the Code of Conduct.  This disregard for the Act by real estate agents makes professional co-operation difficult. 

 

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