In 2013 the Commercial and Property Law Research Centre of the Queensland University of Technology commenced a review of Queensland’s property laws for the Queensland Government. On 19 September 2024, the Property Law Act 2023 (Qld) (‘the Act’) was proclaimed, with the commencement date for the Act set as 1 August 2025.
Aimed at modernising and simplifying Queensland’s property laws, this legislation represents a significant overhaul and will replace the Property Law Act 1974 (Qld).
Key Changes
While the reforms are extensive, key changes under the new Act include:
- Seller Disclosure
Arguably the biggest change being implemented, the Act will introduce a mandatory seller disclosure scheme for freehold land in Queensland. Sellers will be required to give detailed information about the property in the prescribed form, with the goal being that buyers will be better informed before entering into a sale agreement. Under the Act, buyers will generally have rights of termination for a seller’s failure to comply with their disclosure obligations.
- Leases
Significant changes to leasing provisions aim to provide additional protections for lessees and streamline processes. Key changes include:
- Lessor’s Consent Process
Under the Act, lessee’s seeking the lessor’s consent (including to assign, sublease, alter the premises, or change the permitted use) must provide notice to the lessor. Lessors will now have a prescribed timeframe in which they must respond. Failure to respond within the timeframe is deemed unreasonable, and tenants will have the right to seek a court order for relief or damages if consent is unreasonably withheld or conditions are deemed onerous.
- Release of Lessee and Guarantor on Subsequent Assignment
For leases entered into after the commencement of the Act, the original lessee and any guarantor will be released for breaches occurring after a subsequent assignment of the lease. These provisions cannot be contracted out of, providing greater protection for lessees and their guarantors.
- Enforceability of Covenants
The Act clarifies that, unless specified otherwise, covenants in a lease bind assignees to the same extent as they bound the original lessee.
- Notice to Remedy Breach
Lessor’s obligations to serve a notice to remedy a breach will be broadened to include serving a copy on parties including mortgagees, receivers, and guarantors.
- Enforceability of Easement Covenants
In a departure from established precedent, the Act provides that both positive and negative covenants in registered easements will be enforceable against successors in title, unless the covenant expressly states that it is to be personal to the original parties to the easement.
- Limitation Period for Deeds
The Act reduces the limitation period for actions based on deeds from 12 years to 6 years. This will align the limitation period for deeds with that of contracts, providing for improved consistency.
As the review and amendment of Queensland’s property laws continues, it is important for all stakeholders to keep up to date. The continued push to shift property dealings to electronic platforms also means ongoing updates to practices and administrative processes. Such broad-ranging amendments mean that a large section of the community will be impacted given the scale of property dealings in Queensland.
The above is general information only, and it is important that advice be sought about your specific circumstances. If you require advice or assistance with navigating Queensland’s property laws, contact the experienced team at Miller Sockhill Lawyers on 07 5444 4750.