PO Form 6 Refresher and Best Practice Tips

Journal,  Journal,  Principals,  Salespeople

Agents should be familiar with the procedure for completing a Property Occupations Form 6 Appointment and reappointment of a property agent, resident letting agent or property auctioneer (Form 6).

The Form 6 must be completed in accordance with the requirements of the Property Occupations Act 2014 (PO Act), and must be signed and dated by the client and agent before an agent can lawfully provide any services to the client.[1]

Relevantly, the PO Act outlines the statutory requirements which must be satisfied for Form 6 to be valid and enforceable.

The general content requirements which must be satisfied in order for the Form 6 to be valid are listed in section 104 of the PO Act. It is important that agents are aware that section 112(4) of the PO Act mandates that any appointment is ineffective from the time it is made if the appointment does not comply with section 104 of the PO Act.  Accordingly, due care and consideration needs to be taken to ensure that all relevant information is included in the Form 6.

Specifically, section 104 of the PO Act states, inter alia, that:

PO Act

Other requirements which must be satisfied in order for the Form 6 to be valid are contained within Part 4, Division 2 of the PO Act.

Further, if any annexures are added to a Form 6 (including the Item Schedule and Essential Terms and Conditions available on Realworks), they must be listed in Part 9 of the Form 6 under the signatures.

However, situations may arise where instructions from a client, or the agreement between an agent and their client may change after the Form 6 has been completed and signed.

It is thoroughly recommended that all amendments to a Form 6, no matter how minor, are made in writing and initialled by all parties. In the event of a minor amendment, such as correcting an error made when the Form 6 was initially completed and signed, it is vital to record the amendment in writing, have all parties initial and date the amendment, and send the client a copy of the amended Form 6 in writing (eg via email or post).

Another example may be where an agent has been appointed to sell a property by auction. As agents are aware, a date for the auction must be inserted into the Form 6 at Part 4, Section 1. A failure to insert an auction date will result in the agent breaching section 107(2) of the PO Act.

In the event that the auction date is changed, the agent must ensure that the variation is agreed to in writing by the seller client. Again, it is vital to record the amendment in writing, have all parties initial and date the amendment, and send the client a copy of the amended Form 6 in writing (eg via email or post).

In the event of a major amendment to the Form 6, such as multiple or extensive changes to fees, charges and any commission payable for the agent’s service, it is recommended that a new Form 6 be prepared and signed by the client and agent. The new Form 6 should incorporate the new instructions from the client, or the new agreement between the agent and their client, and ensure that all other requirements of the PO Act are complied with in order for the new Form 6 to be valid and enforceable.

In the event that a new Form 6 is prepared due to multiple or extensive changes to fees, charges and any commission payable for the agent’s service, a copy of the new Form 6, once executed by the parties, should be sent to the client in writing (eg via email or post) along with confirmation of when the new Form 6 commences.

Conclusion

The appointment agreement between an agent and a client (the Form 6) is paramount in demonstrating an agent’s compliance with the PO Act, in particular section 104. Agents should always ensure that the information required under the PO Act is included in order for the Form 6 to be valid and protect an agent’s entitlement to commission. Further, performing any services for a client without a valid Form 6 is an offence with a maximum of penalty of 200 penalty units.[2]

Due care and consideration also needs to be taken where instructions from a client, or the agreement between an agent and their client, changes after the Form 6 has been completed and signed. Whether a minor amendment is made to the Form 6 (initialled and dated by the parties) or whether a new Form 6 is prepared, agents should always ensure that all relevant information is included in the Form 6.

If members have any further queries, we encourage them to contact the REIQ Agency Advisor Service on 1300 697 347 for assistance. Not a member? Join today.

References

[1] Section 102 of the Property Occupations Act 2014.

[2] As of 1 July 2022, the value of a penalty unit is $143.75

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