‘Buyer beware’: Huge change to how homes are sold in Qld

Queensland property law unpacked

Queensland’s real estate industry is bracing for new laws which will make it the nation’s most regulated major market – but buyers’ advocates say the reforms still fall short.

The landmark seller disclosure scheme effective from August 1 will “fundamentally alter” how homes are sold, according to industry experts.

Sellers will have to share a wide range of details about their property before contracts are exchanged, including zoning, rates and water charges, tree orders or heritage listing, government orders requiring work or money, and any building work carried out by an owner-builder in the last six years.

But the pendulum still swings to “buyer beware”, with controversial omissions including the structural soundness of the building or pest infestation, the presence of asbestos, and any history of flood or other natural hazards.

REIQ CEO Antonia Mercorella said the peak body had been pushing for change for more than a decade

Real Estate Institute of Queensland CEO Antonia Mercorella said the changes to the Property Law Act was one of the most significant since it was introduced in 1974.

“While this is a meaningful change that enhances consumer protection, it’s important for buyers to understand that the seller’s disclosure regime may not prescribe or encompass everything they may wish to know about a property, and accordingly they should still conduct their own due diligence,” Ms Mercorella said.

“The ‘buyer beware’ principle continues to apply in Australia.”

Ms Mercorella said the peak body had been pushing for a clearer disclosure process for more than a decade, which had been “largely delivered” by the legislation.

Challenges included ensuring sellers had easy and low-cost access to the information they had to reveal to buyers.

Buyers agent Melinda Jennison wants buyers to be equipped to make better informed decisions

Brisbane buyers agent Melinda Jennison said the updated minimum disclosure requirements lacked in areas “buyers are commonly exposed to risk”.

“It would have been great if sellers were required to disclose any uncertified or unapproved building work that had taken place at the property,” Ms Jennison said.

“Sellers should also be obligated to disclose any previous building or pest defects that have been identified in the past, even if those issues have since been addressed.

“The availability of past inspection outcomes would provide an important layer of transparency for buyers.”

The pendulum still swings to ‘buyer beware’

Ms Jennison said this information would allow buyers to make better informed decisions, rather than having to undertake costly investigations of their own after contracts were exchanged.

Property lawyer Bryce Melville, of Redemont, said Queensland’s new seller law was tougher than its counterparts in NSW and Victoria, noting seven specific disclosures that were not required by either of the two other states.

“Sellers and agents need to prepare now,” Mr Melville said.

“For the first time, sellers must provide a full set of disclosure documents, including title searches, planning certificates and environmental notices, before a contract is signed, or risk the contract becoming void.

“The changes bring Queensland in line with Victoria and NSW, but go even further, setting a new national benchmark for buyer protection.”

Redemont property lawyer Bryce Melville said the laws go further than in NSW or Victoria

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Chris Burling, of Business Depot Legal, said the reform aimed to boost transparency and avoid disputes by giving buyers crucial information upfront.

But it was “not a free pass”, Mr Burling said.

“Unlike other states such as NSW and Victoria, Queensland has historically operated under a ‘buyer beware’ model, placing the onus on the buyer to uncover crucial property details through independent due diligence,” Mr Burling said.

“This has often left buyers vulnerable to unexpected risks and financial loss if key issues weren’t identified before entering into a contract.”

The laws could delay off-market or auction sales

The new rules were expected to create a ripple effect through the market, potentially delaying off-market deals and auctions as sellers would need to engage a solicitor earlier to prepare the disclosure documents.

Ms Jennison said the reforms, while “a step in the right direction”, left room for improvement.

“In particular, standardising the disclosure of known historical issues would significantly reduce buyer vulnerability and improve transparency across the market.”

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