The Property Law Act 2023 passed the parliament last week (25 October 2023) and will commence on a date to be announced. Some of the important changes you should be aware of are:
1. introduction of a seller disclosure scheme that will apply to all freehold land in QLD (form will be prescribed by regulation). There will be buyer termination rights for failure to comply with the relevant disclosure requirements. Note however if there is another legislation providing for the relevant termination rights (e.g. Body Corporate and Community Management Act), then the consequences of that other legislation will apply.
2. In the leasing spacing, there will be additional protection for current and former tenants (i.e. assignor). Under the current common law position, for example, when tenant #1 assigns the lease to tenant #2 who then subsequently assigns the lease to tenant #3, tenant #1 can still be made liable for tenant #3 during the lease term. The new legislation will remove the ongoing liability of tenant #1 for tenant #3 during the lease term. Note however tenant #1 can still be made liable for tenant’s 2 breaches (unless tenant #1 is expressly released in the relevant agreement/deed).
3. Limitation Period for deeds reduced to 6 years – the limitation period to bring an action based on a deed is 12 years. Under the new legislation, the limitation period will be reduced to 6 years, taking away one of the current benefits of using a deed (as opposed to an agreement).
4. Enforceability of easement covenants – currently, a positive covenant may not be binding on successors in title (of a burdening lot) unless the successors in title agree to be bound by it (e.g. a positive covenant for another party to attend to repair and maintenance works/ a positive covenant for another party to attend to rates and taxes payment). Under the new legislation, a covenant of a registered easement imposing an obligation, whether it is positive or negative, will be binding on the subsequent owners of the burdened land in relation to use, ownership or maintenance of the burdened land for the benefit of other land (unless those covenants are expressly made to be personal to the original parties).
Please contact Ensure Legal should you have any questions about the reform on the Property Law Act.
