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REIQ Journal : July 2008
34 Legal Issues Safeguard your commission: Avoid the potential By Michael Gapes, Partner, Carter Newell Lawyers IN THE DECEMBER 2007/January 2008 edition of the REIQ Journal, we reported on the District Court decision of Jones v Knobel & Davis Property Services Pty Ltd  QDC 241. In that case, the seller in the transaction accused the agent of not obtaining an executed PAMD Form 22a Appointment to Act. However, the agent was able to recover his commission of $76,120, and also interest and costs, with the help of contemporaneous diary notes of his meetings with the seller. This decision serves as a reminder that agents must ensure they hold a valid Appointment before selling a property, otherwise they run the risk of not being able to recover their commission. Following on from the District Court decision the seller, Jones, recently appealed the decision to the Court of Appeal ( QCA 105). The case on appeal examines an interesting issue concerning the provisions of the Property Agents and Motor Dealer’s Act 2000 in relation to an agent’s entitlement to commission. The facts Jones was the owner of a valuable parcel of land and buildings on the Gold Coast. She claimed that she had already found a buyer for the properties when she was approached by the sales agent, McKay, on 24 May 2004. Jones stated that she told McKay she would allow him a week to obtain a higher offer than the existing offer that she had already received for the property. REIQ Journal July 2008 pitfalls