The 50 year Queensland Property Law Act has been replaced with new legislation. Up until 2023 interpretations of many fundamental property rights and principles were from the Property Law Act 1974 (OLD)(PLA), but that’s all changed with the introduction of the new legislation.

This article examines those important changes, so read on to discover how they affect property owners and the industry.

The Property Law Bill 2023

The Property Law Bill 2023 is based on more than 200 recommendations from the Commercial and Property Law Research Centre at QUT, and was designed to modernise property law and the Property Law Act. It reflects contemporary commercial practices and languages. It also amends and consolidates other important Acts.

Let’s cover some of the key changes the new Bill introduced and learn what they mean for you.

Seller disclosure requirements for freehold land

The 2023 legislation includes a requirement that sellers provide disclosure to a buyer regarding the property for sale. These changes obligate sellers to provide certain information to the buyer of their property. The new requirement applies to the sale of all freehold land. This includes apartments, and if it isn’t done correctly, the buyer has certain rights to terminate the deal.

The information required in the disclosure statement is a prescribed form and includes the following information:

1. Title searches
2. Registered survey plan
3. For lots in a community title scheme:
   • Body corporate information certificate
   • Community management statement
   • By-laws not included in CMS
4. QCAT tree and fence orders
5. Pool compliance certificates or notice of no pool safety certificates
6. EPA notices
7. QBCC notices
8. Current rates and water notice.

Changes to tenant liability and lease transfer rights

According to the 2023 Bill, any tenant who transfers their lease to a new tenant will no longer be responsible once that new tenant transfers the lease again. This means the original tenant won’t be liable for any issues caused by the subsequent new tenant. However, the original tenant is still accountable for any issues caused by the first new tenant, unless the lease agreement or the law states otherwise.

Contract terms cannot override the lease, and any lease provision that states otherwise will be invalid. Due to this, landlords carefully need to consider agreements and security provided by a potential new tenant. These new changes to the Bill make the rules for commercial leases similar to those of retail shop leases.

Another important inclusion in the Bill is this. Tenants may now apply to the courts to recover damages where a landlord’s consent to a lease deal (including an assignment) was “unreasonably withheld”.

Exceptions to contract deadlines

The 2023 Bill also introduced changes to contracts of sale. For instance, under the new provisions, time frames or deadlines written in a contract will no longer be crucial in certain situations defined as “adverse events”. These include where someone cannot complete a property settlement due to the following reasons:

1. Natural disasters
2. Public health emergencies (such as COVID-19)
3. Requirements to comply with a lawful direction or order given by a government entity
4. An act of terrorism or civil commotion
5. An explosion or sudden impact of an object (for example, an aircraft or object from space)

However, once a party that couldn't previously meet the deadline gives notice, time frames will become valid again. They must give notice as soon as they can, and they can't cause any unnecessary delays.

Contingency plans for e-conveyancing system outages

Under the new Bill, there are now provisions regarding electronic conveyancing (eConveyancing). This includes a rule about what to do if computer systems are not working on the day of settlement (such as the one in the REIQ contract of sale).

Shorter time limits for legal action on deeds in Queensland

In Queensland, the time limit for commencing deed-based legal action dropped from 12 years to 6 years under the new Bill. Therefore, Queensland residents now have a shorter window of opportunity to file a lawsuit than those in other states, where deeds may still be filed for up to 12 years.