The Development and Real Estate Industries have welcomed
the passing of the Land Sales and other Legislation Amendment
Act 2014 ("The Act") by Parliament with Amendment on
9 September 2014.
The Act amends the Land Sales Act 1984 (Qld)
("LSA"), the Body Corporate and
Community Management Act 1997 (Qld)
("BCCMA") and instalment contract
provisions in the Property Law Act 1974 (Qld)
("PLA") with the aim to significantly
cut down red tape for the sale of off-the-plan lots. This will be
of significant benefit to property developers.
In a recent media release the Attorney-General and Minister for
Justice, Jarrod Bleijie, noted "these reforms will make
Queensland an even more attractive place to live and work by
promoting growth and investment, which in turn creates
opportunities for Queenslanders".
WHAT YOU NEED TO KNOW
Amendments to the LSA
The Act transfers the disclosure requirements for proposed
community title scheme lots to the BCCMA. This alignment means that
Buyers can no longer terminate based on the existing
'significant variation test' but instead only where
material prejudice is demonstrated.
The Act requires the Seller to provide a further statement to
the Buyer at least 21 days before settlement if the disclosure plan
The Seller must provide a plain English explanation of any
The onus is on the Buyer to show that any variation materially
Amendments to the BCCMA
A Buyer will now have 21 days to terminate a Contract if they
are materially prejudiced as a result of a variation.
All offences relating to disclosure statements have been
Only one disclosure statement will have to be provided to
Buyers under an Option Contract if the Buyer remains the same.
The Seller can nominate a 5½ year sunset date.
Amendments to the PLA
For contracts entered into after the Act commences, deposits of
up to 20% of the purchase price are permitted before the instalment
contract provisions are triggered.
If a deposit is forfeited because of a Buyer breach of
contract, the Seller may retain the deposit of up to 20%.
WHERE TO FROM HERE?
It is expected that the Act will commence shortly. We will
provide you with an update once the commencement date of the Act is
In the meantime, it is important that professionals involved in
property transactions understand the new requirements and prepare
for the commencement of the Act.
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.
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