Many Queensland commercial and industrial real estate agents are members of the REIQ. As members, these agents have access to current training and professional development through the Institute and are also bound by strict Standards of Business Practice.
Commercial real estate is typically retail shops and offices while industrial real estate generally refers to factories and warehouses. The term "commercial real estate" is generally accepted these days as covering industrial as well as commercial real estate.
Frequently Asked Questions
Commission
Property Management
Stamp Duty
GST
Property Agents and Motor Dealers Act 2000
1. What are the fees and commission rates charged by commercial agents in Qld?
Fees are not regulated and are therefore negotiable. Any successful investor will tell you that if you choose the right agent they are worth far more than the fees they charge. Never choose an agent on the fee structure alone. The final result is where the money is made not through negotiating lower fees.
2. Why should I have my commercial and industrial property managed by a specialist agent, surely anybody can collect the rent?
Collecting the rent is only part of the job. When you engage a specialist agent to manage your commercial and industrial property they do just that - they manage your property. Management means more than just collecting the rent. It involves:
- Advising on acceptable lease structures so that your investment not only retains its value but also has growth built in wherever possible.
- Negotiating lease terms with the tenant to obtain results that ensure that the value of your property is enhanced by the lease and not restricted or worse - devalued.
- Dealing with your tenant in an expert manner regarding queries and problems that inevitably arise from time to time with the property and/or tenancy - these negotiations should only be handled by professionals to achieve the best outcome.
- Ensuring the property is maintained.
- Advising the owners on rental and sale values and generally keeping them informed of market trends.
- The future value of your property is dependent in part by the quality of it's management - to take chances with a non specialist is unwise and likely to result in rough running for your investment and lower returns.
3. What if I need information about Stamp Duty rates in Queensland?
The best place to refer the issue to is the Queensland Office of State Revenue - For more information about Stamp Duty, go the State Government's website at www.osr.qld.gov.au or phone 07 3227 8733 or 1300 301 342.
4. If I have GST-related questions regarding supply of a going concern or GST on rent, where should I go for advice?
The only source of definitive information on these topics is the Australian Tax Office. Contact details are included on their website at: www.ato.gov.au
5. What if any were the effects of the Property Agents & Motor Dealers Act 2000 on Queensland commercial real estate?
Whereas there is now a 5-business day cooling off period on all Queensland residential property transactions, this does not apply to commercial property transactions.
The impacts on commercial real estate agents who deal in business brokerage, hotel brokerage, commercial and industrial sales and leasing from the introduction of the Property Agents and Motor Dealers Act on July 1, 2001, are minimal but do include the following:
- Electronic Fund Transfers permitted for trust account transactions;
- Audit period extended and enlarged range of "qualified" auditors to do audits of trust accounts;
- Mandatory codes of conduct for all real estate agents, including a requirement to put in place a dispute resolution process;
- Mandatory requirement for an Appointment of Real Estate Agent (Sales and Purchases) PAMD Form 22a.
Where in the past, multiple sales of land or buildings used for residential purposes being sold on behalf of a single owner were defined as commercial property, under the new Act they will be regarded as residential. For those commercial real estate agents who are involved in property project marketing and sales of property developers' stock the impacts include:
- Warning statements as front page of all contracts of sale of residential property;
- Where unsolicited invitations to attend a property information session that result in a sales contract, that contract must be subject to a 5 business day cooling off period;
- False representation and misleading statements about property have been strengthened to include representations about the value of the property, previous history of the property, tax advantages of purchasing the property or the income earning potential of the property;
- A 60 day limit on sole and exclusive agency on residential property will apply. This sole or exclusive agency is renewable, but not more than 14 days prior to the expiry of the previous agreement;
- Maximum rates of commissions on residential property sales remain regulated.
The Office of Fair Trading has recognised that the definition of "residential property" has impacted on agency requirements to comply with sole/exclusive agency limitations and limits on the maximum commissions, which can be charged for the sale of residential property - even property developer's stock. Further policy and legislative development will be undertaken with a view to providing the Minister with options for amendment of the provisions relating to sole/exclusive agency and the regulation of commissions.
