IF YOU ARE A REAL ESTATE AGENT IN QUEENSLAND – YOUR ROLE MIGHT BE ABOUT TO CHANGE, ARE YOU READY? | DRAFT PROPERTY LAW BILL 2022 – SELLER DISCLOSURE OBLIGATIONS

An exposure draft of the Property Law Bill 2022 has been released for consultation which, if passed, will significantly alter the way property contracts are prepared and conducted in Queensland. The Bill seeks to introduce a statutory seller disclosure scheme in Queensland which would, with some exceptions, make it mandatory for a Seller of freehold land to provide a Buyer with a disclosure statement and associated certificates prior to the contract being signed.

Purpose of the legislation

The new disclosure scheme is designed to provide Buyers with the opportunity to review key information and make more informed decisions before entering into a contract for the purchase of real property.

Queensland currently does not have a general seller disclosure regime and disclosure obligations are spread across contract, statute and common law. The seller disclosure scheme would consolidate the disclosure obligations, bringing Queensland in line with many of the other states.

Information to be provided

Before entering into a contract, a Seller would be required to provide a Buyer with a signed disclosure statement for the relevant lot in the prescribed form.

As currently drafted, the disclosure statement would need to include:

Details of any unregistered or statutory encumbrance over the lot that will not be released at settlement
Details of any current notice, order or transport infrastructure proposal that has been issued to the seller by a Commonwealth, State or local government entity and that may affect the title to or use of the lot after settlement
Details of any notices issued in accordance with the Environmental Protection Act 1994
Details of any tree applications or tree orders issued in accordance with the Neighbourhood Disputes (Dividing Fences and Trees) Act 2011
Details of the Seller’s compliance with their obligations under the Queensland Building and Construction Commission Act 1991

Attached to the disclosure statement, the Seller would also need to provide:

Current title search
Registered survey plan of the lot
Body corporate certificate in the approved form
Community Management Statement and any by-laws not included in this document
Pool compliance certificate or notice of no pool safety certificate
The most recent rates notice (or details of the exemption or a statement that no separate assessment of rates has been issued for the lot by a local government)
The most recent water services notice (or statement that no separate water services notice has been issued for the lot by a local government)
Any application order under the Neighbourhood Disputes (Dividing Fences and Trees) Act 2011 in relation to a tree on the lot
Any notice required to be given to the Buyer under the Environmental Protection Act 1994
Any ‘unlicensed building work’ notice required to be given to the Buyer under the Queensland Building and Construction Commission Act 1991

Information not required

As currently drafted, the disclosure statement would not require the Seller to disclose details of the following:

Flooding history
Structural soundness of the building or pest infestation
Current or historical use of the property
Current or past building approvals for the property
Limits imposed by planning laws on the use of the land
Services that are or may be connected to the property

Buyers would still be encouraged to make their own enquiries about these matters.

Failure to disclose

Under the draft Bill, if a Seller fails to comply with their disclosure obligations or the disclosure statement contains inaccuracies that adversely affect the Buyer, the Buyer may terminate the contract at any time prior to settlement. The Seller would be required to repay any amount paid towards the purchase, including any interest that has accrued on funds held, for example by the agent as deposit.