New property law will help Qld buyers be better informed but it needs to go further
AT LONG LAST new property laws are coming that will EMPOWER BUYERS to make more informed decisions when purchasing property in Queensland! However, the new seller disclosure requirements under the Property Law Bill 2023 do not go far enough. Regrettably the Bill omits seller disclosure of floods, bushfires, coastal hazards, asbestos and known structural defects or infestations - these are all very serious matters that would significantly impact a buyer’s decision to purchase their biggest asset yet they are deliberately left out!
Many will welcome the new legislation to replace Queensland’s outdated property laws however, it is my view, that the proposed disclosure rules need to be broadened to encompass all known matters that would materially impact a decision to buy.
Currently in Queensland the onus is on the prospective buyer to undertake due diligence when purchasing a property. The seller does not have to provide very much information upfront leaving the prospective buyer with the task of conducting various investigations and with the burden of absorbing the cost of this critical exercise. The buyer has very little time (7-14 days) for the necessary inspections to be arranged and the reports to be completed, explained, digested and understood. Notably the inspections are limited in that they are only VISUAL inspections and conducted in areas that are reasonably accessible. Many defects cannot possibly be detected by the human eye and many can be easily covered up by stored goods, heavy furniture, new render, paint, rugs, paintings and several other means. The Seller can find all sorts of ways to “legally” cover up structural and unsafe defects. This is clearly unjust and the primary reason why I sought justice by petitioning Queensland Parliament with the support of the then State Minister of Parliament, Kate Jones MP to improve our property laws in 2016.
BENEFITS OF THE PROPOSED LEGISLATION
New seller disclosure laws will:
Create a level playing field for ALL buyers because they will ALL consider the information from the ONE statement;
More transparency and more balanced bargaining power between the sellers and buyers;
Ensure smoother, more efficient sales with less hold ups reducing time, cost and stress for all parties;
Motivate sellers to identify the defects upfront and have them rectified and/or disclosed;
Demand a more professional, honest and ethical real estate industry
Better maintained properties especially before their sale so that we live and work in safer, healthier and more resilient buildings.
If this new Bill becomes law, it will turn the real estate industry on its head because the previous buyer-beware selling processes will be woefully inadequate. It will be necessary for the Government, in collaboration with the industry, to develop and implement a comprehensive awareness and education program regarding the new seller disclosure scheme in the lead up to, during and following the commencement of the legislation. It will also be necessary to consider other methods of meeting the legal requirements to facilitate easy adoption of the new rules and help with the industry’s change management. During the seven years following the tabling of my petition, I worked on creating a digital solution to overcome the buyer beware problems. inndox was launched in 2018 and has been helping professional selling agents here and overseas to easily provide seller disclosure, bring more trust and win more listings.
Learn how inndox can help your real estate business provide seller disclosure and create a new revenue stream by clicking.