Remaining up to date with legislative changes is essential for real estate professionals operating in Queensland. Recent reforms have introduced significant updates that impact property transactions, tenancy agreements, and overall industry practices. Below is a detailed overview of the key changes and their implications for the industry.
Property Law Act 2023
The Property Law Act 2023, passed by the Queensland Parliament on 25 October 2023, replaces the nearly 50-year-old Property Law Act 1974. This new legislation is scheduled to commence on 1 August 2025 and aims to modernise property laws in Queensland. Key updates include:
Mandatory Seller’s Disclosure Regime:
Sellers of residential properties are now required to provide a disclosure statement and prescribed certificates to prospective buyers before a contract of sale is signed. This does not apply to commercial properties.
- If a seller fails to provide the required disclosure, buyers may have the right to terminate the contract before settlement.
- Modernisation and Clarification:
The Act simplifies legal language, removes outdated provisions, and clarifies sections that have historically caused confusion among practitioners. It also accommodates digital transactions and updated contractual clauses, ensuring the legislation remains relevant to modern property practices.
For more information, visit the Queensland Government’s Crown Law site.
Residential Tenancies and Rooming Accommodation and other Legislation amendments
On 23 May 2024, the Queensland Parliament passed the Residential Tenancies and Rooming Accommodation and Other Legislation Amendment Act 2024, introducing several reforms aimed at improving tenancy laws. These changes include:
- Portable Bond Scheme:
The Act establishes a framework for a portable bond scheme, allowing tenants to transfer their rental bond directly between properties rather than paying a new bond upfront. This reduces financial stress and simplifies the transition for tenants. - Rental Sector Code of Conduct:
A new code of conduct promotes fairness, transparency, and accountability for all parties in tenancy agreements, including landlords, tenants, and property managers. - Several tenancy law reforms will come into effect in stages, with the final phase commencing on 1 May 2025. These changes focus on tenant rights, privacy, and fairer rental processes.
- Enhanced Privacy Protections
- Property owners and managers must provide at least 48 hours’ notice before entering a rental property, except for general inspections, safety checks, and emergency situations.
- Standardised Rental Applications
- A new prescribed rental application form will be introduced to ensure personal information is handled securely and fairly across all rental applications.
- Disclosure of Financial Benefits
- Property owners and agents must disclose any financial incentives they receive from rent payment methods offered to tenants.
- Tenant Rights for Property Modifications
Tenants can now request permission to attach fixtures or make structural changes to improve safety, security, or accessibility. Landlords must assess these requests reasonably and in line with the new regulations. - Staged Implementation:
The changes have been rolled out in stages:- Initial changes commenced on 6 June 2024.
- Further reforms came into effect on 30 September 2024.
- Additional provisions are scheduled for 1 May 2025.
For further details, refer to the Residential Tenancies Authority (RTA).
Stamp Duty Concessions for First Home Buyers
To support first-time homebuyers, the Queensland Government has increased stamp duty concessions:
- Threshold Increase:
The exemption threshold for first-home buyers has been raised from $550,000 to $700,000, potentially saving buyers up to $17,350. - Example: A first-home buyer purchasing a property for $650,000 would have previously paid $9,000 in stamp duty but now pays none.
For more details, visit the Queensland Revenue Office website.
Implications for Real Estate Professionals
These legislative updates have significant implications for real estate professionals in Queensland. To stay compliant and effective, professionals should:
- Stay Informed:
Regularly update knowledge of legislative reforms through trusted sources like the RTA, Queensland Government sites, or professional training programs. - Review Practices:
Assess and adjust current practices, particularly around seller disclosure obligations, tenancy agreements, and client communication, to align with the new legal requirements. - Educate Clients:
Provide buyers, sellers, landlords, and tenants with clear, accurate advice about how these changes impact their rights and responsibilities. For example:- Inform sellers about the new disclosure regime.
- Advise tenants about their rights to request modifications.
- Guide first-home buyers on stamp duty concessions.
- Undertake Professional Development:
Participate in training or CPD programs to gain a thorough understanding of these reforms and enhance service delivery.
Preparing for the Future
The real estate landscape in Queensland is evolving rapidly, with these legislative changes reflecting a shift towards modernisation, fairness, and consumer protection. Real estate professionals who proactively adapt to these developments will not only ensure compliance but also maintain trust and credibility with clients.
By staying informed, adjusting practices, and prioritising client education, Queensland real estate professionals can thrive in this dynamic industry environment.