The Property Law Bill 2023 has recently been introduced to Parliament in Queensland. If enacted, the Bill will replace the historic Property Law Act 1974 (QLD) which has been in place now for almost 50 years.
The Bill makes several significant changes to the current Property Law Act in QLD. Some of these changes, if introduced, would align QLD with certain disclosure obligations currently required at law in Victoria for the sale of property. Industry bodies are currently advocating for changes to the Bill. Key aspects of the Bill in its current proposed form are noted below;
Seller disclosure regime
The Bill seeks to significantly modify conveyancing in Queensland with the inclusion of a seller disclosure regime. The introduction of this regime aims to mandate sellers to disclose certain information about the property to prospective buyers. The prescribed disclosure statement requirements include a title search, a copy of the registered plan of survey, and in the case of community titles schemes, a copy of the community management statement.
The disclosure statement, much like the Section 32 in Victoria, must be signed by the seller or their authorised representative as a true statement at the time of signing. It must be given to the buyer and contain information on any unregistered encumbrance, zoning under the local government scheme, information about any contamination or pest infestation the Vendor is aware of, the financial information about rates and water charges, and details such as whether the property is heritage listed.
If introduced, these changes would introduce significant obligations on the Vendor to disclose information about the property. Conversely, the changes would provide buyers with a greater understanding of the risks associated with a certain property, and the ability to make a more informed decision for their purchase.
Contracts of sale
Time is usually of the essence in contracts of sale. Under the new Bill, the concept of time being of the essence will no longer apply for certain ‘Adverse Events’ that occur beyond a party’s control. This will offer protection to parties who are unable to complete settlement due to no fault of their own. However, the affected party must provide notice as soon as possible, and should not intentionally cause undue delay.
The proposed Bill also incorporates electronic conveyancing provisions not previously reflected in the 1974 Act. This change is particularly timely given the electronic conveyancing mandate from 20 February 2023.
The Bill, once enacted, will change the way property transaction occur in QLD. It will be of even more importance that Vendors obtain professional advice on the new disclosure requirements to ensure compliance with the new Bill and to safeguard their property transaction.
Other key proposed changes
Lease assignments
The Bill provides for statutory release of liability for tenants (and any guarantors) who assign their interest under a lease, specifically when an assignee further assigns their interest to a third party. This means that post assignment, a tenant will not be responsible for any breach of the subsequent assignee. Furthermore, these provisions cannot be excluded by the parties involved in a lease assignment. The Bill also gives tenants the right to apply to the courts to recover damages when a landlord unreasonably withholds consent to a lease dealing.
Limitation periods for deeds
The Bill proposes a reduction in the limitation period for an action based upon a deed from 12 years to 6 years, substantially decreasing the timeframe to initiate legal proceedings following a cause of action.
The team at Robinson Gill Lawyers will monitor the introduction of the Bill and any changes, and update our clients accordingly once the Bill passes into effect.
How can I learn more?
Kelly Brown.
Senior Associate.
- Property and Wills & Estates
- 03 9890 3321
- Email Address: k.brown@robinsongill.com.au
Kelly is a lawyer in the property, wills and estates team at Robinson Gill. She has extensive experience in a range of commercial and residential property, estate planning and administration matters.
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