Significant changes to Queensland’s property law are set to take effect on 1 August 2025, with the introduction of the Property Law Act 2023 which will replace the Property Law Act 1974 modernising legislation in line with current legal practices.
A key feature of this legislation is the establishment of a mandatory seller disclosure regime, aiming to enhance transparency and provide buyers with essential information before entering into property transactions. This will bring Queensland in line with other states who have already established pre-contract seller disclosure requirements.
Overview of the Seller Disclosure Regime
Under the new regime, sellers of freehold land in Queensland are required to provide prospective buyers with a disclosure statement and prescribed certificates before the buyer signs the contract of sale. This requirement applies to both residential and commercial properties, with certain limited exceptions.
Key Requirements for Sellers
- Disclosure Statement and Prescribed Certificates: Sellers must furnish a completed and signed disclosure statement including (but not limited to):
- title search and plan
- notices of any building work
- details of any current work orders or notices from authorities
- tenancy information
- rates and water invoices/information
- information about encumbrances including easements, covenants, mortgages, leases
- body corporate information certificate, community management statement (CMS), and bylaws not included by the CMS if the property is in a community titles scheme
- Timing: These documents must be provided to the buyer before they sign the contract, ensuring they have all necessary information to make an informed decision.
Benefits for Buyers
Buyers gain increased protection under this regime. If a seller fails to provide the required disclosure documents, or if the information is inaccurate or incomplete regarding a material matter, the buyer may have the right to terminate the contract before settlement.
Exceptions to the Disclosure Requirements
There are specific exceptions to these disclosure obligations. For instance, sales of off-the-plan lots are not subject to these requirements and will continue to be regulated under existing legislation.
Preparation for Implementation
The Property Law Act 2023 will commence on 1 August 2025, allowing time for education and preparation among legal professionals and real estate agents. The Queensland Law Society and the Real Estate Institute of Queensland are collaborating to update standard contracts and provide guidance to ensure compliance with the new requirements.
These reforms mark a significant shift in Queensland’s property law, aiming to balance the responsibilities of sellers and buyers, and promote transparency in property transactions.
For further information, contact the team at Lynch law.
