Recap: Update to property law in Queensland takes effect from 1 August 2025

From 1 August 2025, the Property Law Act 2023 (QLD) (New PLA) replaces the Property Law Act 1974 in Queensland. We previously published an article detailing the key changes and reforms under the New PLA.

As a recap, below is a high-level summary of the key changes that took effect from 1 August 2025:

1. Introduction of a Mandatory Seller’s Disclosure Regime

The New PLA introduces a mandatory Seller’s Disclosure Regime which creates a uniform set of requirements for all residential and commercial property transactions. Sellers must provide a disclosure statement and any necessary certificates to buyers before signing the contract to ensure buyers are fully informed.

Key features include:

• Mandatory Disclosure: Sellers must disclose key information to the buyer before the contract is executed.

• Double Disclosure for Option Deeds: Disclosure is required before entering an option deed and again before the nominee contract is signed.

• Consequences of Non-Disclosure: Buyers may terminate the contract prior to settlement if disclosure documents are not provided or contain inaccuracies.

The regime enhances transparency but requires sellers to comply diligently to avoid contract terminations. Certain exceptions may apply for related buyers, government entities and sales if the sale price exceeds $10 million, or if the buyer provides a waiver notice.

2. Modernising Property Sale and Leasing Processes

The New PLA modernises property transactions to align with contemporary practices, focusing on electronic conveyancing and settlements. Key changes include:

• Electronic Conveyancing: Establishes electronic conveyancing as the standard and ensures consistency with paper-based processes.

• Settlement Delays: Addresses delays caused by unforeseen adverse events such as natural disasters or system failures in electronic conveyancing.

3. Changes to Commercial Leasing

Key reforms in commercial leasing include:

• Assignment and Sublease: Landlords must respond to tenant requests for lease assignment or sublease within one month. Tenants and guarantors are released from liability for future breaches by new assignees. 

• Breach of Lease Notices: Landlords must notify parties (such as mortgages or subtenants) before re-entering or forfeiting a lease. These parties may seek court relief from forfeiture.

• Lease Renewals: Even if a breach occurs after the tenant exercises an option to renew, landlords must serve a prescribed notice before refusing the renewal.

4. Easements and Buyer’s Right to Rescind for Property Damage

• Easements: Positive and negative covenants within registered easements will bind successor in title unless specified otherwise.

• Buyer’s right to rescind for Property Damage: Buyers may rescind contracts if the property is damaged. This right to rescind lasts until settlement, the buyer taking possession, or the seller restoring the property to its original condition. Buyers are entitled to inspect repairs before settlement.

For guidance on how the New PLA may impact your property transactions, or assistance with the new requirements, please contact our people below.

Eollyn Cortes 0478 727 395

Sagang Chung 0431 435 333

Julia Zou 0426 670 202