Form 6 QLD: Appointing a Real Estate Agent, and What to Check

Wondering what your obligations as QLD Real Estate Agent are when looking at Verification of Identity for your client when signing a Form 6? Well look no further…

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VERIFICATION OF IDENTITY (VOI)

On a Form 6, Item H prompts the Sales Agent to complete a verification of identity for their client (extract p3 below).

This means that the Sales Agent properly identifies that the person they are dealing with is the person who owns the property and the person with the correct authority to deal with the property.

From the Office of Fair Trading:

A QLD Real Estate Agent’s obligations under the Property Occupations Regulation (s19) have not changed:

(1) Before auctioning property, an auctioneer appointed to sell the property must take reasonable steps to find out or verify the ownership of the property and property description.

(2) Before listing property for sale, lease or exchange, a real estate agent or real estate salesperson must take reasonable steps to find out or verify the ownership of the property and property description.

As a property agent, you must take reasonable steps to check the true ownership of a property―that the vendor is who they claim to be, and that they have the authority to sell the property.

You must also find out or verify any other facts about the property, including those told to you by the vendor to ensure you don’t misrepresent the property.

“You are breaking the law if you ignore these responsibilities”

What are “reasonable steps”:

The onus is on you to decide what “reasonable steps” are.

The Office of Fair Trading has a guide with their recommendations – which includes face to face meetings and a 100 point ID check (certified by a Qualified Witness):

• Justice of the Peace
• Commissioner for Declarations
• Solicitor

REIQ Verification of Identity Checklist with detailed information that Agents may wish to use to complete a verification of identity.

The REIQ released a Webinar for the Residential PO Form 6 Update in September 2022.  The Webinar addresses the new sections of the PO Form 6 and how to use the new features in Realworks.

Actionable Steps:

You should set procedures within your office to ensure that the above steps occur for every sale. You do not want to be put in a position where you have not validly verified your client’s identity.

Say, hypothetically, the matter goes to court. The judge asks you – “what steps did you take to verify your client’s identity?” Without 100 points of Government issued photo ID, you will not have a strong case to present.

By ensuring you always correctly verify your clients identity, you protect yourself and the real estate agency.

We have experience with VOI and Form 6 advices. Feel free to get in touch with us via the email below.

We look forward to continuing to help thousands of Queenslanders every year with their conveyancing!

Any questions? Want to know more? Get in contact with us via the below form or via info@empirelegal.com.au.

What is a Form 6 in Queensland real estate?

A Form 6 is the Appointment of Property Agent, Resident Letting Agent or Property Auctioneer under the Property Occupations Act. It is the document that appoints an agent to act for you, and it is what gives the agent the legal authority to market and sell your property.

No valid Form 6, no valid appointment. It is the foundation document of the agency relationship, not paperwork.

What does a Form 6 have to include?

The essentials a seller should check before signing:

• The parties and the property, correctly described
• Whether the appointment is sole, exclusive or open, and for how long
• The commission, stated as an amount or a clear method of calculation
• The marketing and advertising costs you are agreeing to pay, and whether they are payable if the property does not sell
• The services the agent will perform

Why does the Form 6 matter to a seller?

Because a defective appointment can affect the agent’s entitlement to commission, and because the terms you sign are the terms you are held to. The two that cost sellers money are the length of an exclusive appointment and the marketing spend agreed up front.

An exclusive agency that runs longer than you expected means you cannot move to another agent without exposure, even if the campaign is going nowhere.

What is the difference between a Form 6 and a Form 2?

They do different jobs and are frequently confused. A Form 6 appoints your agent. A Form 2 is the seller disclosure statement given to a buyer before the contract is signed. One is about your relationship with your agent, the other is about what you must tell the buyer.

Does the Form 6 have anything to do with identity verification?

No, and this is a common mix up. Verification of identity is a separate process your solicitor carries out to confirm you are who you say you are before dealing with your land, and it now sits alongside AML and CTF obligations. The Form 6 appoints an agent. VOI protects your title.

Both happen at the start of a sale, which is why people conflate them.