On 25 October 2023, the new Property Law Act 2023 was passed by the Queensland Parliament for changes to be made to Queensland residential and commercial contracts, for both off the plan and existing properties.
Some of these new changes are set out below in this blog.
New disclosure requirements by the Seller
Sellers will be required to provide information for transparency about the property to buyers, prior to the execution of the contract. Currently, buyers make these enquiries themselves after the contract is executed and usually during the cooling off or the due diligence period.
New prescribed form and certificates
The seller will need to provide buyers, prior to execution of the contract, with documents such as title searches, registered survey plans, adjudicators’ orders, pool compliance certificates, notices from the Environmental Protection Agency and Queensland Building and Construction Commission, unregistered encumbrances, information about the body corporate, community management statements and by-laws that are not in the CMS.
Buyers can terminate contracts due to non-compliance by Sellers
If:
- the disclosure documents are not provided correctly by the sellers; or
- buyers uncover ‘material inaccuracies’ that were not initially disclosed,
buyers will be able to terminate the contract up until the settlement date.
The inaccuracy must be such that the buyer would not have signed the contract had it been aware of the correct state of affairs in relation to the property.
What sales are excluded from the above?
The new scheme has several categories that are exempt from its requirements, including:
- Sales between related parties where the buyer voluntarily waives the requirement.
- Sales between co-owners or neighbouring landowners when the purpose is a boundary realignment.
- Sales mandated by a court order.
- Transfers to personal representatives or beneficiaries under a will or due to the death of the property owner.
- Contracts stemming from an option where the seller previously disclosed information to the buyer when entering into the option for when the buyer under both the contract for the sale of the lot and the option for the sale of the lot are the same. If a nominee is appointed under an option, separate disclosure is necessary before the option is exercised.
- Sales with a price exceeding $10 million (including GST) where the buyer consents to waive the requirement.
- Sales by entities such as Brisbane City Council or another local government to recover overdue rates or charges. In such cases, the buyer is notified that the seller is exempt from providing the disclosure statement and required certificates.
- Sales by the state where the buyer has been the property’s tenant for at least three years, and the buyer receives a notice that the seller is not obligated to provide the disclosure statement and required certificates.
- Sales to buyers who are publicly listed corporations (or subsidiaries of publicly listed corporations), the state, statutory bodies, or constructing authorities under the Acquisitions of Land Act 1967 (Qld).
Are you wanting your property contract reviewed?
There are many steps you must take once a contract is signed moving forward and this is why it is crucial that you speak with us before signing a contract, so that you are well prepared for the next steps in the usually fast paced conveyancing process.
Contact our team today to speak with us regarding any property matters.
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