Property Law Bill 2023
Plain English Summary
Overview
This bill replaces Queensland's nearly 50-year-old Property Law Act 1974 with a modernised framework for property transactions. It introduces a statutory seller disclosure scheme requiring sellers to provide standardised information to buyers before contract signing, facilitates electronic conveyancing and electronic deeds, and simplifies rules governing mortgages, leases, co-ownership, and trusts.
Who it affects
Home buyers and sellers are most directly affected, with buyers gaining new rights to receive key property information upfront and to terminate contracts if disclosure is inadequate. Mortgage holders, commercial lessees, body corporate owners, and trustees also benefit from modernised and simplified rules.
Key changes
- Sellers of freehold land must provide buyers with a statutory disclosure statement and prescribed certificates before contracts are signed, with buyers able to terminate if information is missing or inaccurate
- Electronic deeds, electronic contracts for land, and electronic service of notices are formally recognised and facilitated
- Mortgagees must sell at market value when exercising a power of sale, with penalties of up to 200 penalty units for non-compliance on prescribed mortgages
- Settlement is automatically delayed when computer outages, cyclones, floods, or other adverse events prevent completion, protecting both parties
- Former commercial lessees are released from liability for lease breaches committed by subsequent assignees after the lease has been on-assigned
- The complex common law rule against perpetuities is abolished and replaced with a fixed 125-year perpetuity period for trusts
- Body corporate certificates must be provided within 5 business days (down from 7 days), with a penalty of 20 penalty units for delay
- The limitation period for claims under deeds is reduced from 12 years to 6 years for deeds entered into after commencement
Bill Story
The journey of this bill through Parliament, including debate and recorded votes.
▸Committee23 Feb 2023View Hansard
Referred to Legal Affairs and Safety Committee
The Legal Affairs and Safety Committee examined the Property Law Bill 2023 over several weeks, receiving 29 submissions and holding a public hearing in Brisbane. The committee recommended the bill be passed, while also making three further recommendations concerning auction disclosure provisions, lease surrender conditions, and the enforceability of covenants in easements. The Queensland Government supported three of the four recommendations, declining only the recommendation to change lease surrender conditions.
Key findings (5)
- The bill replaces the Property Law Act 1974 with modernised, plain English provisions covering property transactions, mortgages, leases, covenants, and e-conveyancing.
- A new statutory seller disclosure scheme consolidates the currently fragmented disclosure obligations for sales of freehold land.
- The Local Government Association of Queensland called for mandatory disclosure of natural hazard risks at point of sale, but the committee did not recommend this change.
- Stakeholders raised concerns about how disclosure documents would be provided at auctions, leading the committee to recommend a review within 12 months of commencement.
- The committee recommended a review of easement and covenant provisions to ensure non-abusive covenants in modern easements continue to bind successors in title.
Recommendations (4)
- The committee recommends the Property Law Bill 2023 be passed.
- That the Department of Justice and Attorney-General engage with stakeholders and review the provisions of the Property Law Act 2023 for providing disclosure documents at auctions within 12 months of the Act commencing, giving consideration to the provision of disclosure documents to buyers registering before and during an auction.
- That the lease provisions of the Property Law Bill 2023 be amended to require a lessee to surrender the premises to the lessor in the same condition it was in when the lessee first took possession.
- That the Department of Justice and Attorney-General review the easement and covenant provisions of the Property Law Act 2023 within 12 months of the Act commencing to ensure that all non-abusive covenants found in modern easements will still bind successors in title.
Committee report tabled
▸Second Reading24 Oct 2023View Hansard
▸36 members spoke33 support3 mixed
Supported the bill as necessary modernisation of property law, particularly praising the new statutory seller disclosure scheme that will give buyers more complete and accurate information before purchasing property.
“This modern, up-to-date legislation is what is needed now. In our own constituencies we have all heard about cases where a buyer is put in a situation where they believe that inaccurate or incomplete information has been given to them when making a decision to buy a property or freehold land.”— 2023-10-25View Hansard
As Attorney-General, moved the second reading and outlined the bill's key reforms including the seller disclosure scheme, modernisation of property law provisions, and amendments to be moved during consideration in detail.
“The bill will replace the current Property Law Act 1974 with modernised property legislation, drafted in line with contemporary practice and using plain English to simplify Queensland's property laws.”— 2023-10-24View Hansard
Supported the bill as an important modernisation of nearly 50-year-old property laws, highlighting the new statutory seller disclosure scheme and changes to community titles scheme disclosure requirements.
“For buyers and sellers, it is an ongoing safeguard in ensuring that this most significant transaction in their life—the purchase or sale of a property—is undertaken with greater ease, with more transparency and with peace of mind.”— 2023-10-25View Hansard
Standing in for the shadow Attorney-General, confirmed the LNP supports the bill. Acknowledged the modernisation is long overdue and credited the LNP for initiating the QUT review, while criticising the government for taking five years to act on it.
“The need to update and rewrite the Property Law Act is a long time coming and its modernisation is long overdue.”— 2023-10-24View Hansard
Supported the bill, drawing on personal experience of buying a flood-affected property without adequate disclosure to illustrate the value of the new disclosure requirements.
“I would have liked to have had the benefit of the changes included in this bill when I was in my 20s and buying my first home to ensure I was directed towards researching and understanding the flood maps so I could take them into consideration when buying.”— 2023-10-25View Hansard
As committee chair, supported the bill and outlined the committee's four recommendations. Highlighted the seller disclosure scheme as providing valuable information to buyers while noting the practical difficulties of mandating natural hazard disclosure.
“The purpose of the bill is to replace the current Property Law Act with new, modernised property legislation drafted broadly in accordance with the recommendations of the Final report: Property Law Act 1974.”— 2023-10-24View Hansard
As Attorney-General, replied to the second reading debate defending the bill's approach to seller disclosure, rejecting the Greens' amendments on building management statements and natural disaster disclosure, and moving government amendments to clarify technical aspects of the bill.
“It is something that needed to be done right, so the government makes no apologies for taking the time needed to develop this once-in-a-generation rewrite of Queensland's property laws.”— 2023-10-25View Hansard
Supported the bill but criticised the government for taking five years to bring it forward. Raised concerns about the community management statement requirement being voluminous and the exclusion of mandatory natural hazard risk disclosure.
“Buyers need the right information to make informed decisions, but equally sellers should definitely not be unfairly burdened with unreasonable volumes of paperwork.”— 2023-10-24View Hansard
As a committee member, supported the bill as being about fairness and protecting the financial interests of Queenslanders. Outlined the committee's four recommendations and welcomed the seller disclosure scheme.
“This bill is about fairness and providing protection to the financial interests of Queenslanders.”— 2023-10-24View Hansard
Supported the modernisation aspects but raised significant concerns in a statement of reservation about the failure to require disclosure of lawful use of land and natural hazard information, calling them demonstrative of planning system failures.
“What is the point of a planning scheme if it does not, and seemingly cannot, achieve the goal of ensuring buildings and lands are used for the lawful purpose for which they were approved?”— 2023-10-24View Hansard
Supported the bill and its seller disclosure scheme as offering greater protection for all parties. Spoke about the importance of natural hazard disclosure for Brisbane electorates affected by the 2022 floods.
“Ensuring that buyers have information about hazards and issues in an accessible and transparent way is really vital, and I firmly support this aspect of the bill.”— 2023-10-24View Hansard
As a qualified property valuer, supported the bill but raised technical concerns about the removal of agreements for lease from the Land Valuation Act and its significant impact on rates, land tax and property values.
“The most significant purchase that the average Queenslander will ever make in their lifetime is the purchase of their home, that is, their real estate.”— 2023-10-24View Hansard
Strongly supported the bill, particularly the natural hazard disclosure aspects, drawing on her community's experience with the 2022 floods and the Resilient Homes Fund buyback and raise programs.
“By not having some kind of scheme for future buyers of flooded homes to be informed of that event we are simply moving the problem on to the next potential home owner, and that benefits no-one.”— 2023-10-24View Hansard
Supported the bill as a much needed replacement for the 1974 act. Raised concerns about short-term letting issues in his Gold Coast electorate and supported the Unit Owners Association's call for disclosure of lawful use of land.
“My office regularly receives complaints from residents in properties that have short-term letting issues such as loud music, late-night parties and damage to common area facilities.”— 2023-10-24View Hansard
Supported the bill and its seller disclosure scheme, drawing on her community's experience with the 2022 floods and the importance of warning newcomers about flood risks.
“The seller disclosure scheme will give ample warning to potential buyers to perform their due diligence before signing a contract.”— 2023-10-24View Hansard
Did not oppose the bill. Criticised the government's glacial pace in introducing reforms and raised concerns about the exclusion of natural hazard disclosure and inconsistencies in flood information portals.
“It is not surprising that the government has taken five years to introduce the necessary changes. It rarely has control of the agenda because it is so consumed by its self-inflicted chaos and crisis.”— 2023-10-24View Hansard
Supported the bill and highlighted the role of the Queensland Small Business Commissioner in resolving leasing disputes, noting the commission resolves 71 per cent of matters at under $200 per matter.
“It is important for members to know that when it comes to commercial leases between small businesses and landlords for instance, the Queensland Small Business Commissioner is taking calls about the very issues that are raised in this report.”— 2023-10-24View Hansard
Supported the bill on behalf of the KAP, particularly the seller disclosure scheme. Drew on North Queensland experience with floods to argue that the old buyer beware approach is insufficient and sellers should inform buyers of natural disaster risks.
“The old buyer beware advice does not stack up anymore. We need to do more to make sure those potential buyers are properly informed.”— 2023-10-24View Hansard
Supported the bill and defended the time taken to get it right given the 18 QUT papers and 232 recommendations. Cautioned about mandating natural hazard disclosure given different standards of flood information across councils.
“When we had 18 papers making 232 recommendations on an act that is a fundamental part of our legal system and the everyday lives of Queenslanders, it is absolutely crucial that we get this right.”— 2023-10-24View Hansard
Supported the bill but made a strong plea for better flood zoning information to be enforced on insurance companies, highlighting that properties on hilltops are being charged the same high premiums as flood-prone properties due to postcode-based assessments.
“If someone is on a hill at the top of the street, that needs to be reflected in the person's insurance. They have to assess the real risk so that we know that we are being treated fairly, which is not the case at present.”— 2023-10-24View Hansard
Supported the bill as making improvements to information available to buyers for better market outcomes. Thanked the Attorney-General for addressing concerns raised by the Wide Bay Burnett Community Legal Service about clause 68.
“For optimal functioning of a market in any area of market activity it is necessary for all buyers and sellers to have access to the best possible information that they can.”— 2023-10-24View Hansard
As a former solicitor, supported the modernisation but criticised the reinstatement of the community management statement requirement as a lazy reversion to red tape and raised concerns about shifting disclosure liability to body corporate managers.
“Less is more when it comes to disclosure. Putting that CMS back into the process is a lazy reversion to red tape under this Labor government.”— 2023-10-24View Hansard
Supported the bill and drew on her experience as a former town planning consultant to stress the importance of buyers checking land use approvals, noting cases where buyers discovered their property's use was not lawfully approved.
“You cannot assume that an existing use on a site is a lawful use. That is why it is incredibly important for buyers to be aware of existing approvals or the lack thereof.”— 2023-10-24View Hansard
Did not oppose the bill. Focused on the inconsistency of flood mapping that frustrates home owners and the need for better natural hazard disclosure, including bushfire risks.
“Flood maps can have a significant impact on the value of a property depending on where it lies on the map.”— 2023-10-24View Hansard
Supported the bill as a significant step forward in modernising property legislation, highlighting the seller disclosure scheme and e-conveyancing provisions.
“This bill will provide further protections for Queenslanders as we modernise the way we contribute to a more efficient and transparent property law system for Queensland.”— 2023-10-24View Hansard
Supported the bill but moved amendments for mandatory disclosure of past natural disaster impacts to buyers and tenants, and for extending building management statement disclosure to existing lots, not just off-the-plan properties.
“If you own a property and you know it has been flooded or affected by bushfire, you need to be transparent and tell prospective buyers or tenants about the impacts and repairs that have taken place.”— 2023-10-24View Hansard
Supported the bill and the Attorney-General's amendments. Outlined the key changes including the seller disclosure regime, e-conveyancing provisions, and release of liability for tenants who assign their lease.
“The bill, once enacted, will change the way property transactions occur in Queensland.”— 2023-10-24View Hansard
Supported the bill but focused on the inadequacy of natural hazard risk disclosure, criticising the FloodCheck portal as clunky and inaccurate. Highlighted both flood and bushfire hazards as equally important.
“There has been a lot of comment in this bill about flood as a natural disaster; however, there has not been as much comment relating to bushfire hazards. These are equally important to home owners and landowners.”— 2023-10-24View Hansard
Supported the bill and provided an extensive historical account of the evolution of property law from the Married Women's Property Act 1870 through to the current reforms, arguing for the removal of the outdated section 15 on rights of husband and wife.
“It is about time we got rid of section 15 and let 1870 stay in the past where it belongs.”— 2023-10-24View Hansard
Supported the bill but backed amendments for mandatory disclosure of flood risks and building management statements. Criticised BMSs as giving developers dictatorial power over building management and residents' homes.
“For the government and their mates in the Real Estate Institute of Queensland to justify this by placing the onus on renters to do their due diligence is, in my view, unacceptable, especially when we are talking about people's lives and livelihoods.”— 2023-10-24View Hansard
Supported the bill as making a real difference for Queenslanders by simplifying and clarifying the property transaction process, particularly the seller disclosure scheme.
“The easier we make it for people at these particular points in their lives, the better it is for all of us.”— 2023-10-24View Hansard
Supported the bill and drew on Lockyer Valley's world-class flood mapping to argue for better natural hazard information and engagement with insurance companies on postcode-based assessment.
“Good information does not necessarily mean getting more information, as many submitters have said, but certainly getting the best information allows you to make a sensible decision around that big decision.”— 2023-10-24View Hansard
Supported the bill as a key piece of reforming legislation, particularly the seller disclosure scheme and its importance for her electorate which has a higher than average percentage of mortgaged home owners.
“I want to ensure that we do everything we can to give them the information they need to make an informed purchase when buying their homes.”— 2023-10-24View Hansard
Supported the bill but shared firsthand experience of purchasing off-the-plan and discovering the developer changed the building management statement after settlement, stripping out obligations while keeping fees. Suggested future reforms to BMS arrangements.
“Do I think it could be better? Yes, I think it could be better. Given that we have been looking at this for over nine years, we probably had time to make it better but we have not.”— 2023-10-24View Hansard
Supported the bill as modernising an important legal framework, particularly welcoming the continuation of electronic conveyancing provisions introduced during COVID-19 and the seller disclosure scheme.
“It is really good to see that the bill continues the operation of the provisions relating to electronically creating and signing deeds, which were first brought forward in Queensland during the COVID-19 pandemic.”— 2023-10-24View Hansard
Supported the bill and its seller disclosure scheme as empowering buyers with transparent, streamlined access to key information. Drew on her electorate's experience with the 2022 floods to highlight the importance of natural hazard awareness.
“The seller disclosure scheme simplifies and streamlines the existing disclosure process and empowers buyers to make informed decisions about property dealings.”— 2023-10-24View Hansard
▸In Detail25 Oct 2023View Hansard
Amendments 1-3 to clause 65 clarifying that the provision on covenants in registered easements applies to easements in gross, and expanding the list of examples to include insurance and indemnity covenants.
Amendment 4 to clause 68 replacing the requirement that every party to a contract must be joined to legal proceedings with a requirement that every party must be served with the proceedings.
Amendment 5 to clause 80 clarifying that the provision for delayed settlement due to inoperative computers operates on a rolling basis.
Amendments 1 and 2 to clause 95 (consequential) to include references to a proposed new clause 99A requiring disclosure of building management statements and natural disaster impact statements.
That the amendments be agreed to
Party VoteVote on Dr MacMahon's amendments 1 and 2, which were consequential amendments to require sellers to disclose building management statements and natural disaster history to prospective buyers. The amendments were defeated.
The motion was defeated.
What is a party vote?
This was a party vote. Each party's Whip declared how their members voted without a physical count, so individual votes were not recorded. Party votes are used when all members of a party are expected to vote the same way.
Amendment 3 proposing new clause 99A requiring sellers to provide buyers with building management statements for existing lots and a statement of the seller's knowledge of natural disaster impacts on the property.
Amendment 4 to clause 100, a consequential amendment to include references to the proposed new clause 99A for disclosure of building management statements and natural disaster impacts.
Amendment 5 to clause 101, a consequential amendment to include references to the proposed new clause 99A.
Amendments 6-8 to clauses 101 and 103 clarifying that disclosure document requirements for auction bidders registering after the start of an auction only apply if the bidder was not previously given the documents.
Amendments 9-12 to clause 106 correcting the scope of the provision so it applies to prescribed certificates issued by any entity (including departments and local governments), not just statutory bodies.
Amendment 6 proposing new clause 178A requiring lessors to disclose natural disaster impacts on residential tenancy premises before the tenancy agreement is signed, with a right for tenants to terminate if disclosure is not provided.
Amendment 13 to clause 191 omitting subclauses (4) and (5) to correct an unintended override of the common law principle for determining priorities between competing assignees of a debt.
Amendment 14 inserting new clause 239A to clarify that the omission of express references to signing by a lawfully authorised agent does not limit the general law of agency.
That the amendment be agreed to
Party VoteVote on Dr MacMahon's amendment 3, which proposed a new clause 99A requiring sellers to provide building management statements for existing lots and a statement of natural disaster impacts before the buyer signs the contract. The amendment was defeated.
The motion was defeated.
What is a party vote?
This was a party vote. Each party's Whip declared how their members voted without a physical count, so individual votes were not recorded. Party votes are used when all members of a party are expected to vote the same way.
Moved amendments to require sellers to disclose building management statements for existing properties and provide statements about natural disaster impacts, including a new disclosure requirement for residential tenancies. All amendments were defeated.
“Prospective buyers of existing properties, not just off-the-plan properties, deserve to know what they are entering into, which are often restrictive and undemocratic schemes.”— 2023-10-25View Hansard
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