Changes to Queensland Laws Impacting Property Sales

On 25 October 2023, the Queensland Government passed the Property Law Bill 2023, which is replacing the Property Law Act 1974. This Bill introduces a raft of changes to property law that will impact property sales and leasing in Queensland.

The Bill will commence on a date fixed by proclamation. This means a date to be set by Parliament in future.

The Real Estate Institute of Queensland (REIQ) has released a summary of the changes to the law.

Seller’s Disclosure Regime

This regime applies to the sale of both residential and commercial property in Queensland.?

Once the regime commences, a seller will be required to provide a disclosure statement and prescribed certificates in relation to the property they are selling, to a prospective buyer before a contract of sale is signed by the prospective buyer.

In Queensland, real estate professionals, such as Sales Agents, are permitted to prepare and exchange the disclosure documents on behalf of their client.

There are some limited exceptions that apply to specific property transactions. The buyer may be entitled to terminate a contract of sale any time before settlement if the disclosure documents are not provided correctly, or there is a mistake or omission that relates to a material matter, which the buyer was not aware of and had they been aware, they would not have entered into the contract.

Property sale transactions

Provisions relating to the settlement of contracts have been updated to reflect modern conveyancing processes, including electronic conveyancing. These changes will not likely have a significant impact on real estate professionals, however it is important to be aware of these changes and to direct your clients to seek legal advice if they need assistance.

Delay Events

Provisions dealing with a delay of settlement due to an adverse event (such as weather, public health emergency, act of terrorism, war or similar event) now apply. New provisions also relate to inoperative computer systems for electronic conveyances on the date of settlement, to ensure consistency between paper-based and electronic transactions.

Easements

The new provisions confirm that unless the easement specifically confers a covenant to a party personally, both positive and negative covenants contained in registered easements will bind a grantor and the grantee of the easement, and their respective successors in title.

Right to rescind contract of sale on destruction of or damage to dwelling house

Provisions relating to the right of a buyer to rescind a contract for the sale of a house that has been destroyed or damaged resulting in the property to be unfit for occupation now clarifies the buyer’s right to termination. This right will end on the earlier of:

• settlement;
• the buyer taking possession of the property; or
• the seller rectifying the dwelling so that it is returned to the condition it was prior to the damage or destruction.

The buyer also now has a right to inspect the dwelling to confirm it has been returned to the condition it was in prior to the damage or destruction.

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