The Importance of Disclosure in Property Contracts

On Wednesday 25 October 2023, the Queensland Parliament passed the Property Law Act 2023 (the New Act), which is a landmark legislative reform designed to modernise the state’s property laws. This legislation supersedes the Property Law Act 1974, which has been in effect for nearly five decades.

The New Act attempts to streamline property laws in Queensland, bringing them into alignment with the laws already in operation in other Australian states, with its primary objective being the enhancement of transparency and consumer protection in freehold land property transactions.

In particular, the New Act introduces and/or modifies seller disclosure requirements for sellers of freehold land, including units, whereby the seller must disclose relevant information and documentation regarding the property to potential buyers prior to signing a contract.

Failure to Comply with Disclosure Requirements

Where a seller fails to provide proper disclosure in compliance with the New Act, the buyer may be entitled to terminate the contract. The purpose of the new disclosure requirements is to enhance the transparency and allow potential purchasers to make informed decisions when purchasing property in Queensland.

The New Act also further enhances the disclosure requirements for the sale of a property that is part of a body corporate, and attempts to streamline disclosure requirements for land sales in Queensland, bringing them into alignment with other Australian states.

In the recent case of Burridge & Anor v Saville [2023] QSC 244, a CJM client was faced with the situation where the buyers alleged that she had failed to comply with her disclosure obligations prior to the buyer entering into the contract for the purchase of her duplex property. The buyers alleged that the disclosure provided by the seller was insufficient, and they purported to terminate the sale contract and seek a refund of their deposit.

Whilst the Supreme Court of Queensland found that the CJM client had in fact complied with her disclosure obligations, and that the buyers’ termination of the contract was not valid, it serves to highlight the importance of compliance with the new disclosure requirements for all freehold land sale contracts once the New Act comes into operation.

Get Experienced Legal Advice

Purchasing a property is often one of the largest investments in a person’s life. The Burridge case emphasizes the importance of engaging an experienced solicitor to prepare and/or review a draft contract prior to execution, and to represent you throughout the conveyance process, particularly in the unfortunate circumstance where a dispute arises.

If you are considering purchasing a property, or find yourself in a contract dispute, CJM Lawyers’ experienced solicitors can provide you with advice at any stage throughout the sale process, including reviewing the proposed contract of sale. Our property lawyers can be contacted on 1300 245 299.