The Queensland Government has introduced the Land Sales and Other Legislation Amendment Bill 2014 (Bill). The Bill proposes amendments to the Land Sales Act 1994 (LSA), Property Law Act 1974 (PLA) and Body Corporate and Community Management Act 1997 (BCCM).
The Bill is designed to reduce red tape in the sale and purchase of property. The changes will be of particular benefit for developers.
Key proposed changes include:
- Disclosure obligations: Disclosure obligations in the LSA are proposed to be transferred to the BCCM.
- Disclosure material: Disclosure material will no longer be required to state the names and addresses of the seller and buyer.
- Disclosure material in option to purchase: Where a buyer is provided with disclosure material when entering into an option to purchase the seller will not be required to re-issue disclosure material when the option is exercised. However, where a nominee is the buyer under the contract entered into, upon exercise of the option, the nominee must be given a new disclosure statement.
- Further Disclosure: Further statements must be given at least 21 days before the contract is settled (currently the requirement is to give notice within 14 days of the seller becoming aware of the change). The buyer's right to terminate arises if the buyer is materially prejudiced by the change.
- Sunset dates for strata lots: For a proposed lot in a community titles scheme, the seller may nominate a 5 ½ year sunset date (currently 3 ½ years).
- Increased deposit: For 'off-the-plan' contracts a deposit may be up to 20% of the purchase price without making it an instalment contract.
- EOI deposits: Expression of interest holding deposits must be paid directly into the trust account of an agent or law practice (and may no longer be held by a seller).
- Holding Redlich's Property & Projects Group will continue to follow the progress of the Bill and provide updates as they arise.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.