Introduction

On October 25, 2023 the new Property Law Act 2023 (the New Act) passed parliament and will commence on the date of proclamation (being a date yet to be confirmed)

The New Act replaces the antiquated Property Law Act 1974 (QLD) (the Current Act) and aims to bring Queensland’s property laws into the modern era, particularly focusing on enabling conveyancing and electronic transactions.

In addition the New Act includes some other significant changes, including:

Selling Property

Seller Disclosure Scheme

Unlike other Australian jurisdictions, Queensland has traditionally operated on a caveat emptor principle (‘buyer beware’), where buyers bear the responsibility of due diligence on the property they are looking to purchase.

Under the new Seller Disclosure Scheme, Sellers are obligated to provide buyers with a disclosure statement and prescribed certificates before the buyer signs the purchase contract. This disclosure must be in an approved form, including all necessary information and signed by the seller. The scheme allows for physical or electronic delivery of disclosure documents, aligning with the trend towards e-conveyancing.

The need to disclose applies to sales of all freehold land, including auctions, with specific exemptions.

The buyer may be entitled to terminate a contract of sale any time before settlement if the disclosure documents are not correctly completed, or there is a mistake or omission that relates to a material matter, which the buyer was not aware of and had they been aware, they would not have entered into the contract.

This changes marks a significant shift in favour of buyer protection and transparency.

Leasing

Assignment and sublease of leases

Where a tenant requests the landlord’s consent to assign or sublet their lease to another party, the landlord cannot unreasonably withhold its consent and under the New Act the landlord will have one month to decide if they will consent to the request. If they don’t consent within time, unreasonably withhold consent or imposes unreasonable conditions, the tenant may apply to the court for damages.

Liability of Assignors:

Under the New Act, a tenant (and tenant’s guarantors) who assign their lease to a new tenant will be released from breaches of the lease by the new tenant (subsequent assignees) unless expressly agreed otherwise.

Lease Renewals

If a tenant is in breach of their lease, at the time their option to extend or renew their lease is exercised, the New Act sets out a process relating to whether and how a lessor can refuse to accept the lease extension.

Breach of Lease

Before a landlord can re-enter or forfeit a lease for a breach of term, the landlord must serve a notice to remedy breach on the tenant, with copies of the notice to be sent to all designated parties (ie mortgagees, receivers, guarantors and sublessees). Designated parties are then given a right to make a court application to seek relief from forfeiture.

Where the lessor reasonably believes that the tenant has given up possession of the premises, the landlord may not need to serve a notice to remedy breach.

Conclusion

The impending commencement of the Property Law Act 2023 heralds a new era for property laws in Queensland. With a focus on transparency, electronic transactions, and modernizing outdated practices, the New Act aims to create a more efficient and equitable legal framework.

As we all adapt to these changes, it is essential to stay informed and seek legal advice to navigate the evolving landscape of Queensland’s property laws.

Please contact us if you have any questions at info@pacificlaw.com.au