This article is from the Australian Property Journal archive
QUEENSLAND’S new Property Law Bill 2023 has successfully through state parliament, including new disclosure rules to establish greater transparency between sellers and home buyers.
After first being introduced to parliament in February, the legislation has now replaced the current Property Law Act 1974, which has not been comprehensively reformed since it was introduced.
Property Law Bill 2023 is based largely on the recommendations of the Commercial and Property Law Research Centre at the Queensland University of Technology (QUT), following an independent review of the state’s property law.
The bill introduces a mandatory seller’s disclosure regime; changes to commercial leasing practice; and changes to how contracts for sale of land operate and settle.
While the Real Estate Institute of Queensland (REIQ) welcomed the modernised laws, the peak body remains unconvinced on certain provisions it still deems “impractical and ambiguous”.
“The wheels of legislative reform can turn slowly and our advocacy work to inform and influence policy can often span a number of years, but given the significant implications a seller’s disclosure regime will have on the real estate industry, we have rightly dedicated ourselves to ensuring our voice was heard,” said Antonia Mercorella, CEO at REIQ.
“We have long-advocated for the introduction of a seller’s disclosure regime, on the basis that such a regime enhances, without inhibiting, the unique property landscape we have in Queensland.”
REIQ’s position remains that sellers in Queensland should only be required to disclose information that is within a seller’s knowledge, or that are easily attainable by way of searches at no or nominal cost.
“It is disappointing that despite our repeated advice and unparalleled understanding of the way real estate transactions are facilitated in this state, that some material issues have not been duly addressed,” added Mercorella.
“In the case of the disclosure requirements at auction, there will be an opportunity to review at the 12-month mark and we highly anticipate revisiting what we have warned will be impractical and unnecessarily complex requirements.”
REIQ also expressed concerns regarding the introduction of the previously repealed Community Management Statement (CMS) disclosure when selling lots in a Community Titles Scheme.
“Lastly, the Bill stipulates that a buyer may be entitled to terminate a contract of sale any time before settlement because the disclosure documents are not provided correctly, and we’re concerned about the ambiguity of how termination rights will apply with minor technical inaccuracies,” said Mercorella.
“In order to keep real estate great in our state, we need the selling and buying process in Queensland to be as smooth and efficient as possible while including appropriate protection measures for consumers and real estate agents.”
