FAQs updates to the PO Form 6 REIQ Residential Sales Schedule – 1 May 2024

Watch the REIQ's webinars on the new Property Occupations Forms: PO Form 6 and PO Form 6A.

REIQ members can access a best practice example completed version of the PO Form 6 and REIQ Residential Sales Schedule in Member Resources.

1. What changes have been made to the REIQ Residential Sales Schedule?

From 1 May 2024, the REIQ Residential Sales Schedule will be updated to complement the new PO Form 6 Appointment form released by the Office of Fair Trading on the same date. Parts of the Schedule have been updated to streamline efficiency and enhance user experience. 

The changes include:

• Item B consolidates the market advice and comparative market analysis to reduce the duplication of information
• Item I Property Information has been updated to extract marketing information into a separate optional annexure
• A new warranty and indemnity has been included to improve contractual protection for Sales Agents that rely on information about the property provided by their clients
• EF057 Comparative Market Analysis is added as a new optional annexure

2. Why should sales agents use the Property Information Annexures?

There are now two annexures to the REIQ Residential Sales Schedule which may be used by sales agents to obtain information about the property they have been appointed to sell. The Property Details and Disclosure Annexure and Marketing Information Annexure.

These annexures are optional and will be automatically added to a PO Form 6 when created in Realworks. Sales agents can remove the annexures by unselecting them in the Annexures panel in Realworks.

The REIQ recommends that both annexures are used.

The Property Details and Disclosure Annexure captures essential information about the property that:

• is necessary to complete the Contract of Sale; and
• ensures that any matters that need to be disclosed are identified prior to listing the property.

The Marketing Information Annexure captures information about the physical features of the property.  Many of these details are needed when listing the property for sale. 

The REIQ has included new clauses whereby the client warrants that all information provided to the sales agent in the PO Form 6 and annexures is correct. The Client also indemnifies the agent against any claims that may arise from a breach of this warranty.

In preparation for the mandatory Seller’s Disclosure Regime to be introduced in Queensland, sales agents should start to familiarise themselves with obtaining disclosure information by using these annexures.

3. Is my PO Form 6 still valid if I don't use the annexures?

The REIQ strongly recommends that the annexures are included or, that the client provides the information contained in the annexures at a later stage but before entering into a Contract of Sale. Using the annexures will limit the risk of a Contract of Sale falling over and protect your commission.

If you do not want to complete the annexures at the PO Form 6 stage, you can choose to send the annexures to the client separately in Realworks at a later date.

We recommend this is done as soon as possible after the PO Form 6 is entered in case there is important information about the property that you may need to know to avoid making errors or misrepresentations when marketing the property and responding to queries.

4. Will the features in Realworks still work?

Yes, there have been no changes to the features in Realworks that sales agents may use to streamline the preparation of sales contracts.

Once the PO Form 6 is completed, you can then create a New Related Form, for example:

• EF001 Contract for Residential Houses and Land; or
• EF003 Contract for Residential Lots in a Community Titles Scheme,

and the information captured in the PO Form 6 will automatically populate in the relevant field within the Contract. The information in the annexure will only populate if the annexure is used.

Look out in the sidebar of the contracts where you'll find the Merge feature that allows you to search for any completed EF157 Notice of Offer to Purchase form to automatically populate the completed fields from the Notice to the Contract including:

• The buyer's details;
• The purchase price;
• The deposit amount and due date;
• The building and pest condition due date;
• The finance condition due date;
• Any special conditions; and
• The settlement date.

5. What if I have an existing PO Form 6 in progress? Will I have to start again?

You do not need to start a new PO Form 6 in Realworks, if you have a draft one in progress.  If you click on this form, Realworks will prompt you to update the form to the new version of the PO Form 6 and the information will be populated into the new version of the form. See the REIQ FAQs for guidance on the transitional requirements for the new PO Form 6 and Form 6A.

6. How do I complete the Property Details and Disclosure Annexure?

This Annexure contains the following sections, which you will likely be familiar with from the former PO Form 6 and the REIQ Contract Schedule:

• Property description
• Pool, smoke alarms and safety switch compliance
• Matters affecting the property (from the title search)
• Tenancy information
• Disclosure questions
• Financial details
• Client's solicitor details
• Details for Lots in a Community Titles Scheme

The information entered in these sections that have matching fields in the REIQ Contract Schedule will automatically populate into the Contract, if a New Related Form contract is created in Realworks.

You can also use the Information Request feature in Realworks to request your client to complete certain fields.

7. What is the Verification of Identity in Item H?

The REIQ has retained the Verification of Identity and Facts Material to Sale of Property sections to ensure your appointments are valid and compliant with the Property Occupations Regulation 2014.

Agents are required to take reasonable steps to identify their clients' ownership under s19 of the Property Occupations Regulation and this section helps to ensure real estate professionals comply with this legal requirement.

It is also best practice to ensure the client is properly identified because of the increase in fraudulent transactions and incidents that target the real estate profession.

8. What if my client doesn't know about the disclosure matters in the annexure?

If your client is not aware of the matters for disclosure listed in the annexure, it is ok if you do not complete this section in full. You should recommend that they seek legal advice as they may need to make disclosure under clause 7 of the relevant REIQ Contract.

The questions included are existing disclosure requirements under the REIQ Contract. Each question relates to a specific seller's warranty given under clause 7 of the REIQ Contract.

This disclosure information should be obtained from the seller prior to preparing a contract so that you can meet your obligations, as the seller's agent.

For example, under the current REIQ Contract for Sale of Residential Houses and Land:

• The seller warrants under clause 7(1)(g) that the property is not heritage listed at the contract date;
• The seller warrants under clause 7.4(2)(d)&(e) that there are no outstanding obligations on the seller of notifiable activity being conducted on the land, and the seller is not aware of any facts that may lead to the land being classified as contaminated (ie. the land is not listed on the Environmental Management Register or Contaminated Land Register); and
• The seller warrants under clause 7.7(1)(a) that the present use of the land is lawful.

If the client is not aware of the answer to these questions, they should seek legal advice. In most cases they should be aware. A special condition drafted by a legal practitioner may be required to deal with the disclosure item.

If you have any questions and you are an REIQ member, please call the Agency Advice Service on 1300 697 347.

Read more sales articles here.