The Property Law Act 2023 (Act) will modernise property legislation in Queensland and is set to commence on 1 August 2025. By replacing the existing Property Law Act 1974, the Act aims to better accommodate for current legal practices within the property sector. This article provides an overview of the key changes that will be introduced by the Act.
Key Takeaway Points
- The Property Law Act 2023 will modernise Queensland’s property legislation and is set to commence on 1 August 2025.
- The property sector should prepare for changes to rules relating to e-conveyancing, sale transactions, instalment contracts, leases, covenants, deeds, and the repeal of outdated provisions.
- Sales of freehold land will be subject to a new seller disclosure regime.
- A new Form 7 Notice to remedy breach and Form 9 Notice to terminate lease must be used from 1 August 2025.
Sale of land
The requirement that an agreement for the sale of land be in writing and signed will remain. The Act will however account for electronic conveyancing and settlement, and recognises the validity of electronic land contracts and the use of electronic means to enter into deeds and to give notices.
The Act will allow extensions of settlement in the event of inoperative computers or an ‘adverse event’, such as a public health emergency, significant weather event, act of public disturbance and more.
Seller disclosure regime
The Act introduces a statutory seller disclosure scheme. Sellers will be required to provide buyers with a disclosure statement and any prescribed certificates, prior to the buyer signing the sale of contract. This can be done either physically or electronically. Noncompliance with the scheme may enable the buyer to terminate the contract before settlement. Stay informed with our upcoming article: Understanding QLD’s New Seller Disclosure Regime.
Instalment contracts
Instalment contracts are contracts for the sale of land, where the buyer makes payments by instalments but only receives title to land upon the final instalment. The Act safeguards against the unintentional creation of instalment contracts by requiring buyers to make an election that the contract is to be an instalment contract.
Leases
The Act imposes further requirements to obtain lessor consent to an assignment of lease. This includes a statutory timeframe of one month for consent to be obtained and if the lessor refuses to consent, the lessee can apply to the court for relief. When asking for consent, the lessee must provide information required under the lease or by the lessor, to facilitate the lessor in making its decision.
In terms of a lessor exercising its right to re-enter land due to a breach of a lease term, the lessor must serve a notice to remedy the breach on not only the lessee, but to ‘designated persons’. Such persons include a mortgagee, guarantor, sublessee, or assignor under the lease. The Act will relieve lessors of notice requirements, if the lessor reasonably believes that the lessee has given up possession of the land. Original lease assignors and their guarantors will also be released from liability for any breaches by the assignee or subsequent assignees.
From 1 August 2025, a new Form 7 Notice to remedy breach and Form 9 Notice to terminate lease must be used. It is noted that these new forms are similar to but will replace the existing Property Law Act 1974 Form 7 Notice to remedy breach of covenant and Form 8 Notice to tenant.
Easement covenants
The Act provides that both positive and negative covenants in registered easements will be enforceable against successors of title. This provision will apply retrospectively.
Statutory limitations for deeds
The current limitation period for an action based upon a deed is twelve years. The Act will reduce this period to six years, which aligns with the limitation period for an action based upon a contract.
Perpetuities
The Act abolishes the common law rule against perpetuities that a property interest must vest earlier than 21 years after the death of a person alive at the time of the interest created. The Act implements a fixed perpetuity period of 125 years for a property disposition under trust.
Outdated provisions
The Act will repeal outdated or unnecessary property law provisions. Examples include insurance money from burnt buildings, agricultural holdings, restrictions on operation of conditions of forfeiture, and presumption of right to access or use of light or air.
Next steps
Our Property experts are happy to assist if you have any queries about how the Act may affect you or your clients.
