Draft Bill proposing seller disclosure obligations in Queensland

The Queensland Government has published a draft Bill, which in its current form, would introduce mandatory seller disclosure obligations for real property sales.

The implementation of a statutory seller disclosure scheme in Queensland, will be similar to the schemes already existing in Victoria, New South Wales, South Australia and the Australian Capital Territory, which impose a disclosure obligation on the seller, to provide certificates prior to the purchaser signing a contract.

If the Bill is passed, it will create a significant change to the manner in which property contracts are prepared and how property transactions are conducted in Queensland. It will also provide purchasers in Queensland, with the opportunity to review critical information about land, and make informed decisions before they enter into a contract to purchase land.

Notably, the proposed disclosure obligations, require sellers of land, to provide a Disclosure Statement and additional body corporate certificates (if relevant) to a purchaser, before the purchaser signs a contract for the sale of land.

A draft Disclosure Statement has been provided for comment. In its current form, the Disclosure Statement and Bill, require the seller to provide copies of a current title search and registered survey plan for the lot, the community management statement and by-laws (if relevant) a pool compliance certificate (if relevant), along with copies of unregistered easements and various notices.

If a seller fails to comply with the disclosure requirement or the Disclosure Statement contains inaccuracies, which adversely affect the purchaser, the purchaser may terminate the contract, by notice at any time, prior to settlement. If the contract is terminated, the seller must repay to the the purchaser, any amount paid towards the purchase of the lot, under the contract.

The draft Bill contemplates that a purchaser, can waive the requirement for a Disclosure Statement, if the purchase price exceeds $5 Million.

There are also a number of proposed exemptions from the disclosure obligation in the draft Bill, including, where the seller and purchaser are related, the purchaser is a listed corporation, a subsidiary of a listed corporation, government entity or statutory body.

The closing date for written submissions, is 31 August 2022.