April 27, 2023

Your guide to the PO Form 6

A Form 6 is a formal agreement between a real estate agent and a seller, and it is used to appoint the real estate agent to act for the seller in the sale of their property.

The Form 6 can also be used to appoint an agent as a property manager, but for this article, we will focus on its use to appoint a real estate agent to sell residential property.

The form’s full name is Form 6 – Appointment and reappointment of a property agent, residential letting agent or property auctioneer, and it must be completed correctly, signed and dated by both parties for the agent to be properly appointed.

Agents should not provide any real estate services to their clients for payment until they have been formally appointed with a valid Form 6.

Requirements For A Valid PO Form 6 Appointment

The Form 6 will not be valid unless it meets the requirements set out in s 104 the Property Occupations Act 2014 (Qld), and certain other requirements also apply.

These requirements include;

1. Use The Approved Form

For a Form 6 to constitute a valid appointment, it must be in the approved form, and the most current version of the form should be used.

2. Verify The Identity Of The Seller

The real estate agent should verify the seller’s identity before they are appointed, and only take instructions from the legal owner(s) of the property.

3. Fill Out The Type Of Appointment

There are three types of appointments that can be made in the Form 6;

Exclusive agency means the real estate agent has the right to claim the agreed commission for the sale of the property, whether or not they are the effective cause of the sale. For example, under an exclusive agency agreement, the agent can claim commission even if the seller sells the property themselves, or it is sold through another agent.

Sole agency is similar to exclusive agency, in that the agent can still claim commission if the property is sold by another agent. However, in a sole agency, the agent cannot claim commission if it is sold by the owner.

More than one agent can be engaged through an open listing agreement, but only the agent who is the effective cause of sale can claim commission for the sale.

4. Fill Out The Term Of The Appointment

The term of a sole or exclusive agency can be negotiated between the parties, up to a maximum term of 90 days. The parties can opt for the agreement to revert to an open listing agreement automatically after the sole or exclusive agency period.

If the parties wish to extend the exclusive or sole agency beyond 90 days, they can only do so in the last 14 days of the agreement.

If the appointment is for 60 days or more, it must stay in place for at least 60 days. Otherwise, the appointment may be terminated in writing with 30 days notice by either party.

An open listing agreement does not require an end date, and may be terminated at any time in writing by either the agent or the client.

5. State Advertising And Marketing Expenses

The agent should set out any advertising and marketing expenses, along with any expenses for repairs and maintenance that they wish to recover form the client.

6. Set Out Any Commission Payable

The agreed commission and when it is to be paid should be clearly stated.

7. Make Sure It Is Signed

The Form must be signed and dated by each party to be valid. The agent must also give a copy of the Form to the seller.

The above is not an exhaustive list, and other requirements apply. For more information, contact the REIQ, or seek advice from a solicitor.

What Happens If The Form Isn’t Valid?

It is critical that the Form 6 is filled out correctly. An incomplete form may impact the real estate agents ability to claim commission for the sale of the property. If you are unsure about the validity of your agreement, seek legal advice.

More Questions?

If you have more questions about the Form 6, or any other aspect of conveyancing law in Queensland, our friendly, expert property lawyers are waiting to take your call! Contact us today.

The above is not legal advice and is general information only