2024 has seen a lot of change for property law in Queensland. Here is a brief summary of the key changes and how they affect property owners, buyers, and tenants.
1. Property Law Act Updates
The Property Law Act 2023 (Qld) passed in 2023 and has yet to be enacted but it is currently set to come into effect in August 2025, introducing the most significant reforms in Queensland property law in 50 years.
Seller Disclosure Requirements
The new Act establishes obligations for sellers to disclose critical information before contract signing:
- Mandatory Disclosure: Sellers must provide a prescribed form that includes details about property title, zoning, building works, infrastructure proposals, rates and water accounts, body corporate information, and environmental issues.
- Delivery Method: Disclosures can be shared physically or electronically. Real estate agents may prepare these on behalf of sellers.
- Consequences of Non-Disclosure: Buyers can terminate contracts if they later discover material inaccuracies or omissions in the disclosure documents.
The disclosure will not replace the need for a building and pest inspection or investigations by the buyer some of things not required to be disclosed are: flooding history, structural soundness of the building, current or historical use of the property and current or past building approvals.
“Time of the Essence” Rule
Under the updated Act, settlement deadlines can be extended due to “adverse events” such as natural disasters, public health emergencies, or acts of terrorism. This rule aims to safeguard transactions in extraordinary circumstances and cannot be contracted out of. The Act also includes a new section in regard to extending settlement date if settlement is unable to occur due land title registry being inoperative.
There are also changes in regards to enforceability of covenant, release of subsequent assignee and guarantor post lease assignment, how consents to assignment, sublease, change of use or alterations are to be dealt with by the lessor.
2. Residential Tenancies and Rooming Accommodation Act Reforms
The Residential Tenancies and Rooming Accommodation Act 2008 continues its phased updates, with the final stage commencing in May 2025.
Key Changes Effective 2024:
- Rent Increases: Limited to once every 12 months and tied to the property. Exceptions may be granted by QCAT in cases of landlord hardship.
- Minimum Housing Standards: Mandatory from 1 January 2024, requiring properties to be free from vermin, damp, and mold; have functioning locks; and include window coverings for privacy.
- Ban on Rent bidding: rent bidding or accepting rent offers higher than the advertised price is now banned.
- Reletting Costs: The costs for re-letting when a tenant breaks the lease will be calculated on the remaining term of the agreement
- New Rules for Landlords:
- Sellers must disclose if a property was rented within the last 12 months and provide evidence of the last rent increase.
- Utilities bills must be provided to tenants within four weeks or tenants are not liable for payment.
- Entry notice period: minimum notice period will increase from 24 hours to 48 hours in May 2025.
3. Body Corporate and Community Management Act Reforms
The Body Corporate and Community Management Act (BCCM Act) changes, effective May 2024, focus on terminating schemes, smoking, and animal by-laws.
Terminating a basic Community Titles Scheme
A basic Community Titles Scheme can still be terminated either by agreement, when a committee passes a resolution without dissent or with a court order but now if there is economic reasons which are backed up by evidence in the form of a pre-termination report, the vote can pass if at minimum 75% of the lot owners agree to the termination.
Smoking Restrictions
Body corporates can now prohibit smoking in common areas and outdoor lot spaces, such as balconies and courtyards.
Animal By-Laws
By-laws prohibiting pets are no longer allowed. However, committees must follow existing by-laws when approving applications for animals, necessitating updates to remove restrictive rules.
4. Foreign Residents Capital Gains Withholding (FRCGW)
From 1 January 2025, significant changes will apply:
- Withholding Rate: Increased from 12.5% to 15% of the sale price.
- Threshold: Reduced from $750,000 to $0, requiring all property sales to include a clearance certificate from the ATO.
5. Transfer Duty and First Home Owner Benefits
Increased Additional Foreign Acquirer Duty (AFAD)
Effective 1 July 2024, the AFAD rate increased to 8%. For instance, a $680,000 purchase by a foreign buyer incurs $27,200 in AFAD.
Resources for Navigating the Changes
- For Sellers and Buyers: Ensure disclosure forms are accurate and complete to avoid contract disputes and consult with legal experts to understand the implications of FRCGW changes and seller disclosure requirements.
- For Landlords and Tenants: Familiarise yourself with the updated minimum housing standards and rent increase rules and ensure that utilities notices are given in the required timeframes
- For Body Corporate owners: Work with the committee to review and update by-laws regarding smoking and pets.
At NB Property, we specialise in helping stakeholders navigate these legal changes. Our team offers tailored advice to ensure compliance and protect your interests. Book a consultation today to stay ahead in Queensland’s evolving property landscape.