In this blog we explain in 4 minutes the NEW QLD Seller's Disclosure Regime for Queensland property! A new Bill has passed and big changes are coming....
We explain what will be required with the NEW Sellers Disclosure Regime, as well as what is likely to be omitted, timeframes and much more...
Prefer to watch/listen? Click here to consume this content via YouTube!
Hi everybody - George Sourris, Empire Legal.
Today's topic: NEW Seller's Disclosure Regime - EXPLAINED!
Caveat Emptor. "Buyer beware".
That's how I'd say it if I was speaking Latin.
It's a direct translation. It means: "purchase at your own risk".
So, this Latin phrase dictates the legal principle for buying a property in Queensland. Well, guess what guys? Times are changing. Updates to the disclosure requirements for land sales in Queensland suggest the departure of the "buyer beware" principle.
In Queensland, the onus has traditionally rested on buyers to conduct thorough due diligence investigations before finalising a property purchase - with sellers having relatively limited responsibilities in terms of disclosure.
Property law - Seller's Disclosure.
Last month, on the 25th of October 2023, the Queensland Government passed the Property Law Bill (2023), replacing the Property Law Act (1974). The Bill introduces a stack of changes to property law that will impact property sales and leasing in Queensland.
The Bill will commence on a date fixed by proclamation. This means a date set up by Parliament in the future.
The REIQ will keep members up to date in relation to the commencement of this bill. Special shout out to the REIQ for producing great content surrounding this topic.
This new legislation will affect all real estate agents and property lawyers / conveyancers as well as bankers & brokers and anyone in Queensland property.
The Seller's Disclosure Regime.
A new mandatory Seller's Disclosure Regime has been introduced in Queensland. This regime applies to the sale of both residential and commercial properties in Queensland. Once the regime commences, a seller will be required to provide a disclosure statement and prescribed certificates in relation to the property they are selling to prospective buyers - before a contract of sale is signed by the prospective buyer.
There are specific requirements on how the disclosure documents must be prepared, what must be included, and how it must be given to the buyer. In Queensland, real estate professionals are permitted to prepare and exchange the disclosure documents on behalf of their client - the vendor.
The buyer may be entitled to terminate a contract for sale any time before settlement if the disclosure documents are not provided correctly, or there is a mistake or omission that relates to a material matter; whereby if the buyer was not aware of, and had they been made aware, they would have never entered into the contract.
That said, at present, Queensland has no formal seller's disclosure, and sellers are not required to disclose all information to prospective buyers, except that required under common law or contract (for example Community Title Scheme lots do require a Disclosure Statement).
The seller will need to provide buyers with a signed seller disclosure statement. The disclosure statement WILL NEED to include information like: a title search, a registered survey plan, any adjudicator's orders - for example, QCAT for tree and fence, if it is in a community title scheme, body corporate information certificate, community management statement, and bylaws not included in the CMS.
Furthermore, pool safety compliance, QBCC notices, environmental protection notices and current rates and water documentation will need to be provided as part of the new disclosure regime.
A piece of information that will NOT currently be included in the Disclosure Statement is FLOODING History and Flooding Maps. This area is in debate - especially given everything that's happened in Southeast Queensland over the last few years with flooding. There is still discussions between the Government for this to be included in the new seller's disclosure pack.
This lawyer believes that the new laws will allow greater transparency for buyers, allowing Queensland property sales to not have turbulence or speed bumps once they are signed.
This will allow a higher strike rate of deals going all the way through to completion once they're actually signed and on foot. Because, as it stands right now, searches may uncover issues with the property that could allow the deal to fall over/terminate.
Well guys, there is obviously a lot more to come with this in the months ahead. The Bill is still awaiting a date, we don't know when that will happen. We're thinking at least late next year. It is exciting times.
If you have any questions, you can email me: george@empirelegal.com.au.
Keep in mind that there is more information that will be unpacked here. We're just going to have to wait, but as we uncover more, we will share it with you. If this has added value, please share this blog / the YouTube video with a friend.
Thanks for reading everybody. See you on the next one.
Ladies and gentlemen, please keep in mind that all advice is general in nature and does not constitute legal advice. This is authorised by George Sourris, Empire Legal, Gold Coast, Queensland, Australia.
---------------------------------------
We can help…
For simple, sunny, smooth sailing conveyancing - Empire Legal.
We look forward to continuing to help thousands of Queenslanders every year with their conveyancing!
Any questions? Want to know more? Get in contact with us via the below form or via info@empirelegal.com.au.
Note: all information is general in nature and as each matter is unique please contact our office for tailored advices: the above does not constitute legal advice.