More changes to property law in Queensland have recently been announced with Parliament passing the Land Sales & Other Legislation Amendment Bill 2014 (“the Bill”).
The Bill brings amendments to the Land Sales Act (“LSA”), which was viewed as outdated due to complicated technical requirements and the use of redundant and old terminology. The aim of the Bill is to reduce red tape in the sale of off-the-plan properties, whilst still ensuring consumers are protected. The changes brought in by the Bill will modernize and streamline the LSA.
Some of the changes that will commence in the near future as a result of the Bill being passed include:
- The removal of the restriction on developers being able to sell off-the-plan blocks of land until they have obtained a development approval or compliance permit from the local council;
- The requirement for a seller of off-the-plan property to provide the buyer with disclosure documents prior to the signing of the Contract of Sale;
- Increased identification of the details of the off-the-plan property in these disclosure documents;
- Allowing for buyers and sellers of an off-the-plan property to agree not to settle for up to five and a half years after the Contract date;
- An increase in the maximum deposit payable by a buyer of an off-the-plan property from 10% to 20%; and
- Amending the buyer’s right to terminate for changes to an off-the-plan sale from a ‘technical test’ to a ‘material prejudice’ test.
These changes are designed to reduce red tape for developers of projects and enable them to easier secure sufficient pre-sales to secure financing for their projects. There are also increased protections of the rights of potential buyers as part of this.
The Government hopes that the amendments brought about by the passing of the Bill will provide a boost to the development of large residential property projects in Queensland.