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As part of reform to the Property Law Act 2023, property sellers in Queensland, whether commercial or residential, must provide a disclosure statement and prescribed certificates to buyers before they sign a contract.
That information covers a variety of areas, such as the seller’s name, title searches and encumbrances, zoning details, rates and services, as well as prescribed certificates like heritage and environmental documents, pool compliance certificates, and notices issued under building, and planning legislation for any work completed on the property.
This is aimed at providing clarity and transparency for purchasers by giving them a clearer understanding of the property and better access to relevant information.
The reforms also provide buyers the right to terminate a contract right up to settlement day if documentation isn’t provided.
InfoTrack’s head of property Australia, Lee Bailie, said the changes will remove the need for buyers to connect with solicitors, agents, or conveyancers to conduct property checks, saving time and money.
There have been mixed reactions to the announcement of this legislation.
As reported by Broker Daily sister brand REB, REIQ CEO Antonia Mercorella said the new changes would provide greater clarity and consistency in property transactions and also help minimise disputes and contract terminations.
Others, such as Strata Community Association general manager Laura Bos, said it would result in a “$3 million headache for Queenslanders in the next 12 months.”
Bos said someone will need to pay for the shortfall, while ABC News said it could push up the cost of selling a property by $1,000 or more.
Bailie, on the other hand, said that reform was necessary, as the previous legislation hasn’t been updated since 1974.
Regardless of the new requirements, Mercorella reminded buyers that mandatory disclosure statements do not remove the need for buyer due diligence.
“While this regime enhances consumer protection by providing a consistent foundation of information across the state, it’s important for buyers to understand that the disclosure statement may not cover everything they wish to know about a property,” she said.
Mercorella added that Queenslanders in particular must be alert, as there is a lack of government education and information.
“Unlike other states, Queensland still lacks a quality, comprehensive statewide search tool to help sellers obtain the information required for disclosure,” she said.
“This places a disproportionate burden on sellers – especially those in regional and rural areas – who must navigate disconnected systems to collect and verify property details.”
[Related: Brisbane population boom pushes median property value to $1m]
