The Property Law Act 2023 (QLD): What to Expect from August 2025

The Property Law Act 2023 (QLD) (new PLA) introduces substantial changes to QLD property law, replacing the Property Law Act 1974. The new legislation is set to take effect on 1 August 2025 which brings about significant reforms in areas such as property sales, leases, and seller disclosure requirements. For those involved in property transactions, whether buying, selling, or advising – it is essential to understand these new obligations and how they will impact standard practice.

1.      Introduction of a Mandatory Seller’s Disclosure Regime

A central feature of the new PLA is the new mandatory Seller’s Disclosure Regime. This replaces the previously fragmented disclosure obligations with a comprehensive, uniform set of requirements that apply to all residential and commercial property transactions.

Under the new regime, a seller must provide a disclosure statement and any prescribed certificates relating to the property to prospective buyers before signing the contract. This aims to ensure buyers have full knowledge of material facts before committing to the purchase. Real estate professionals will also be able to prepare and deliver these documents on behalf of their clients.

We have set out below the key points of the Seller’s Disclosure Regime.

• Mandatory Disclosure: Sellers are required to disclose key information through a disclosure statement and relevant certificates. These must be provided to the buyer before the contract is executed.

• Double Disclosure for Option Deeds: In cases involving an option deed with a nominee provision, disclosure must be made both before the option deed is entered into and again before the nominee contract is signed.

• Consequences of Non-Disclosure: If a seller fails to provide the required disclosure documents before the buyer or nominee signs the contract, the buyer may terminate the contract up until settlement, without needing to show any loss. Termination rights also apply if the disclosure contains inaccuracies or omissions relating to a material matter that the buyer was unaware of when signing the contract.

This new regime streamlines the disclosure process and provides greater transparency in property transactions, but sellers must be diligent in ensuring compliance to avoid potential contract terminations.

2.      Modernising Property Sale and Leasing Processes

The new PLA introduces updates that align property transactions with modern practices, particularly in the areas of electronic conveyancing and settlement delays. These changes reflect the realities of contemporary conveyancing and aim to streamline processes for both buyers and sellers.

The key changes are set out below.

• Electronic Conveyancing: The new PLA formally adopts electronic conveyancing as the standard for property transactions, ensuring consistency between electronic and paper-based processes.

• Settlement Delays: The new PLA also includes provisions to address delays in settlement due to unforeseen adverse events such as natural disasters, public health emergencies, or system failures in electronic conveyancing.

3.      Changes to Commercial Leasing

For commercial property transactions, the new PLA introduces several important changes related to leasing, particularly regarding lease assignments, subleasing, and breach of lease.

• Assignment and Sublease: Landlords must respond to tenant requests for lease assignment or sublease within one month. If the landlord fails to respond, the tenant can seek relief from the court. Furthermore, tenants and their guarantors are now released from liability for any breaches of the lease by a future assignee.

• Breach of Lease Notices: If a landlord seeks to re-enter or forfeit the lease due to a breach by the tenant or guarantor, they must now notify designated parties such as mortgagees or subtenants. These parties are also granted the right to seek court relief from forfeiture.

• Lease Renewals: The process of renewing a lease has also been updated. Even if a breach occurs after the tenant exercises their option to renew, the landlord must still serve a prescribed notice before refusing the renewal.

  
  

4.      Easements and Buyer’s Right to Rescind for Property Damage

The new PLA clarifies that both positive and negative covenants within registered easements will bind not only the original parties but also their successors in title unless the easement explicitly confers a covenant to a specific party.

Additionally, the new PLA strengthens a buyer’s right to rescind a contract if the property is damaged or destroyed, making it unfit for occupation. This right to rescind lasts until settlement, the buyer taking possession, or the seller restoring the property to its original condition. Buyers are also entitled to inspect the property to confirm that necessary repairs have been completed before settlement.

The mandatory Seller’s Disclosure Regime is one of the most significant changes, requiring sellers to provide all necessary documents to buyers to avoid contract termination. While buyers benefit from increased transparency, they should still conduct their own due diligence. For commercial leases, updates to assignment, sublease, and breach procedures offer clearer protections for both parties, and the formal adoption of electronic conveyancing further modernises property transactions.

Preparing for the Property Law Act 2023

With the new PLA commencing on 1 August 2025, it is crucial for all involved in property transactions to familiarise themselves with these changes. Sellers must ensure compliance with the new disclosure rules, and real estate professionals should be prepared to advise clients accordingly.

For more tailored advice on how the new PLA will impact your transactions, or assistance with the new requirements, please contact our people below.

Ron Zucker  0410 590 111

Eollyn Cortes 0478 727 395

Sagang Chung  0431 435 333

Julia Zou  0426 670 202