The Queensland Government is implementing a new system for property sales in the state, shifting from the traditional “buyer beware” approach to a more proactive seller disclosure model. This significant change aims to enhance transparency for buyers, enabling them to make more informed choices when purchasing property. The Property Law Bill 2023 (Qld) was presented to the Queensland Parliament on 23 February 2023. Once enacted, it will establish a set of fresh disclosure criteria for the sale of registered (established) property in Queensland. These requirements will apply not only to residential property but also to agricultural, commercial, industrial, and other freehold properties. Before finalising the sales contract, sellers are obligated to provide a “disclosure statement” along with any documents specified by regulations, known as ‘prescribed certificates,’ that pertain to the property.
The disclosure statement must contain accurate information as of the time it is furnished to the buyer and must be signed by the seller or an authorised agent. The Property Law Regulation 2023 (Qld) will detail these prescribed documents. The disclosure statement will include statutory assurances from the seller, and the prescribed documents will comprise a title search, a registered survey plan, and other relevant notices according to the Queensland Building and Construction Commission Act 1991 (Qld), Building Act 1975 (Qld), and Planning Act 2016 (Qld), where applicable.
Sellers are required to disclose details about any unregistered encumbrances affecting the property, the property’s zoning status under the local government’s planning scheme, information regarding contamination and environmental protection in accordance with the Environmental Protection Act 1994 (Qld), and whether the property is affected by a transport infrastructure proposal that may impact its dimensions. Additionally, sellers must disclose whether the property is heritage-listed, affected by a government body’s intention to acquire all or part of it, and if there is a pool on the property (or common property). Furthermore, the disclosure statement should include information about the amount of rates and water charges payable for the property. It’s worth noting that the draft disclosure statement does not require the disclosure of flooding information, structural defects or pest infestation, current or historical use, details of past or current building approvals for the property, planning law restrictions on property use, and the status of services connected or not connected to the property.
This change will provide buyers with a clearer understanding of the risks associated with property purchases. Under the new rules, buyers have legal recourse against sellers who fail to make proper disclosures. This legislation encompasses all registered freehold properties, including those sold at auction, by mortgagees or receivers, and through the exercise of an option, with some exceptions.
This new law will significantly impact conveyancers, agents, and other professionals involved in the property industry, as they must ensure compliance with the disclosure requirements. Additionally, the drafting and review of contracts will necessitate careful consideration, and sellers must fully grasp their obligations to avoid potential liability.
The introduction of a seller disclosure regime in Queensland is a positive development for buyers, enhancing their ability to make informed decisions and fostering greater trust in the property market.
