From 1 August 2025, the Property Law Act 2023 (Qld) came into force, introducing the most significant property law reforms in Queensland in over 50 years.
One of the key innovations is the Adverse Event clause in section 81, which fundamentally changes how settlement deadlines are treated when unexpected disruptions occur.
What Is an Adverse Event?
An adverse event is defined in the Act as a serious disruption beyond the control of the parties that prevents a party (the non-attending party) from completing settlement on the due date.
Examples of adverse events include:
- Natural disasters such as cyclones, floods, bushfires, earthquakes, or tsunamis.
- Public health emergencies such as pandemics.
- Lawful government directions that restrict movement or business operations.
- Acts of terrorism, war, riots, or explosions.
- Even “collision with, or impact of, an aircraft or other aerial object” is covered.
(Queensland legislation – Property Law Act 2023, s 81)
How Does the Adverse Event Clause Work?
Previously, Queensland contracts treated settlement as time of the essence, meaning a missed deadline could amount to breach. The new clause provides a safety net:
- Immediate effect – If an adverse event prevents completion, time immediately stops being of the essence.
- Obligations of the affected party – They must:
- Take reasonable steps to mitigate the impact.
- Notify the other party as soon as practicable, explaining how the event prevented settlement.
- Once the event ends, issue a new settlement notice.
- New settlement window – The fresh settlement date must be set between 5 and 10 business days after the notice.
- Time restored – Once the notice is given, “time is again of the essence.”
- Seller’s notice prevails – If both parties issue notices for the same event, the seller’s notice takes priority.
This ensures fairness without undermining certainty in property transactions.
Why This Matters for Brisbane Property Market
In Brisbane’s property market, delays often carry significant financial risk. The Adverse Event clause helps by:
- Reducing default risk – Buyers and sellers are protected from wrongful termination if a natural disaster or systemic failure occurs.
- Providing clarity – There is a clear statutory framework for handling disruptions, avoiding ad hoc disputes.
- Increasing resilience – The law acknowledges real-world risks, from floods to IT outages, that can affect Queensland settlements.
Practical Implications for Property Lawyers and Conveyancers
For lawyers and conveyancers, the reform means:
- Contract updates – All template contracts and client advice must align with the Adverse Event clause.
- Risk management – Advising clients on how and when to issue valid notices becomes critical.
- Electronic settlements – Given reliance on PEXA and banking systems, practitioners should be ready to act quickly if technical outages trigger the clause.
As noted by industry commentators, this provision modernises Queensland law to reflect both environmental realities and technological reliance.
Key Takeaways
- The Adverse Event clause (s 81) of the Property Law Act 2023 came into effect on 1 August 2025.
- It suspends the strict “time of the essence” rule when settlement is prevented by extraordinary events.
- Affected parties must notify promptly and reset settlement within 5–10 business days.
- Buyers, sellers, and lawyers in Brisbane must understand these obligations to avoid costly mistakes.
How Ensure Legal Can Help
At Ensure Legal, our Brisbane property law team is across every aspect of the Property Law Act 2023. We guide buyers, sellers, and investors through settlement with confidence — including advising on Adverse Event notices, extensions, and risk management.
Contact us today to ensure your next property transaction in Queensland is protected — even when the unexpected happens.
