Property Law Bill
Exciting times are ahead for Queensland property buyers with the Queensland Parliament introducing new legislation to modernise property laws with contemporary language to better reflect current commercial practice.
The Property Law Bill 2023 (Bill) is intended to replace the existing Property Law Act 1974 (Qld) which has not been substantially reformed since its commencement over 50 years ago.
The Bill has been drafted broadly in accordance with the recommendations prepared by the Commercial and Property Law Research Centre at the Queensland University of Technology. Most notably, the Bill proposes a statutory seller disclosure scheme mandating sellers of freehold land to disclose relevant information about the property before a prospective buyer has signed the contract.
Who will this affect?
- Sellers – Currently in Queensland, there are no formal seller disclosure requirements other than for off-the-plan or community title scheme sales. The Bill will require sellers to provide copies of the property title, which will show any registered encumbrances such as mortgages or easements, and information regarding the property through basic property searches.
- Buyers – The scheme will remove the current responsibility placed on buyers to investigate any defects and faults in the property. The Bill will empower buyers to make well-informed decisions prior to entering into a purchase contract as well as provide the right to terminate should the seller not comply with their disclosure requirements. Buyers will also be alerted to undertake their own due diligence to obtain flood information on a property.
- Real estate agents – The scheme will require significant changes to the way contracts are drafted and prepared.
Similar seller disclosure obligations already exist in other States including New South Wales and Victoria. It’s about time Queensland catches up and it will be interesting to see how such a scheme plays out in the current property market.
Watch this space!
Disclaimer: This publication is intended for general and informative use only and is not to be relied upon as professional financial or legal advice.
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