With the New Year in sight it might be a good time to think about a new year’s resolution. For those of you who have not checked your letting appointments in quite some time, an ideal resolution would be to undertake a self-audit. Unfortunately, there are some managers that overlook the importance of ensuring their appointments are valid and compliant. Here are some of our tips and advice.

• Make sure you are using the most recent version of the Form 6 prescribed under the Property Occupations Act 2014 (Qld). The latest version of the form came into effect on 1 May 2024. Whilst the use of an older version of the appointment after that time may not make the appointment invalid, you should at least ensure that from now on the correct version is used.
• The client’s name should always reflect the owner of the property at Part 1 of the Form 6. It should never be assumed that an individual is the owner and appropriate steps should be taken to confirm this. Quite often we see that managers will hold appointments with a client that is mis-described.
• Managers will often include the incorrect details in the licensee section at Part 2. The licensee should be the individual or entity which holds the license, while the trading name is the registered business name you use (if there is one). This section should never include more than one licensee and should include full particulars such as the company name, ACN or the individual’s complete name as it shows on the license. Where a company is the letting agent, it is the company’s licence number that should be shown, not that of the licensed director or person in charge.
• The appointment should always be a continuing appointment at Part 4, Section 2 rather than for a fixed period of time and should also include the date of commencement. Section 3 should include the weekly rent for the property or refer to the schedule of fees and charges. It is strictly important to include reference to instructions/conditions at Part 4, Section 4 or otherwise the appointment is likely invalid. Assuming there is an addendum or a schedule to the Form 6, use of the words “See attached addendum/schedule” will suffice.
• The commission at Part 7 should refer to the base rate plus any management fee, letting and re-let fees referred to in the schedule (e.g. 7.5% commission plus GST and other applicable fees). The commission should be described as being payable at the same time when the owner receives payment of rent.
• For Part 8 it is not necessary to describe all fees, charges and expenses and reference can be made to the schedule. It is important that you properly categorize all fees, charges and expenses as there is a distinct difference between the two (you are entitled to profit from a fee or charge but not an expense). It is best to use the industry adopted addendum/schedule of charges rather than the REIQ schedule. The ARAMA endorsed addendum is on appropriate terms for managers operating both short term and long term letting business.
• Lastly, make sure the appointments are properly signed and dated by you and the client at Part 9. This is quite often the most overlooked aspect of the appointment and it is common for one party to forget to sign.

While our advice might seem basic or self-explanatory, we see that some managers do not have their appointments in order. If you are not sure about what to include at a particular section, it is best to consult a solicitor or accountant. It is vitally important for your appointments to be valid, particularly when it comes time for you to sell.

Written by William Kenny

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