{"id":1237,"date":"2024-01-31T15:24:28","date_gmt":"2024-01-31T05:24:28","guid":{"rendered":"https:\/\/www.abkj.com.au\/articles\/?p=1237"},"modified":"2026-04-13T04:40:39","modified_gmt":"2026-04-12T18:40:39","slug":"understanding-the-property-law-act-2023","status":"publish","type":"post","link":"https:\/\/www.abkj.com.au\/articles\/understanding-the-property-law-act-2023\/","title":{"rendered":"Navigating Queensland&#8217;s Legal Landscape: Understanding the Property Law Act 2023"},"content":{"rendered":"<p><strong>In a significant legislative move, the Property Law Act 2023 (The Act) has been approved by Queensland&#8217;s Parliament, marking a fundamental change in the state&#8217;s property laws. <\/strong><\/p>\n<p>Replacing the 50-year-old <a href=\"https:\/\/www.legislation.qld.gov.au\/view\/html\/inforce\/current\/act-1974-076\" target=\"_blank\" rel=\"noopener\">Property Law Act 1974 (Qld)<\/a>, the Act will introduce substantial modifications aimed at simplifying, streamlining, and modernizing the existing legal framework.<\/p>\n<p>Although the Act passed through Parliament on 25 October 2023 and received royal assent on 2 November 2023, its commencement awaits an official proclamation.<\/p>\n<p>The anticipated delay in commencement is a strategic decision, allowing for extensive consultation, the formulation of new regulations, educational initiatives, and preparatory work by stakeholders across various sectors, including legal, financial, property, and community titles.<\/p>\n<h2>Key Takeaways<\/h2>\n<ul class=\"ul1\">\n<li class=\"li1\">Property Law Act 2023 is a major reform that replaces the 50-year-old Property Law Act 1974 (Qld) and aims to simplify, streamline and modernise Queensland\u2019s property law framework.<\/li>\n<li class=\"li1\">The Act had passed Parliament and received royal assent, but that commencement was still awaiting official proclamation at the time of writing.<\/li>\n<li class=\"li1\">A major reform described is a mandatory seller disclosure scheme for registered freehold lots, requiring sellers to provide a signed disclosure statement and prescribed documents before contract completion, with termination rights for buyers if information is materially inaccurate or incomplete.<\/li>\n<li class=\"li1\">The Act supports e-conveyancing and allows electronic signing and delivery of disclosure documents.<\/li>\n<li class=\"li1\">In relation to leases, lessors cannot unreasonably withhold consent to assignment, subleasing or changes of use, and that the Act creates clearer rules around covenant enforceability and release of previous assignors and guarantors in some circumstances.<\/li>\n<li class=\"li1\">Trust reform is replacing the traditional rule against perpetuities with a fixed 125-year period from the trust\u2019s initiation, while warning that changing existing trusts may have tax and duty implications.<\/li>\n<\/ul>\n<h2>Objectives of the Act<\/h2>\n<p>The primary objectives of the <a href=\"https:\/\/www.legislation.qld.gov.au\/view\/html\/asmade\/act-2023-027\" target=\"_blank\" rel=\"noopener\">Property Law Act 2023<\/a> are comprehensive, seeking to replace outdated legislation while simplifying, streamlining, and modernizing Queensland&#8217;s property laws.<\/p>\n<p>A key focus is on adapting to contemporary needs, particularly by facilitating e-conveyancing and electronic transactions within the real estate industry.<\/p>\n<h2>Key Changes<\/h2>\n<h3>Sale of Land Disclosure<\/h3>\n<p>An essential aspect of the Act is the introduction of a mandatory seller disclosure scheme for registered freehold lots in Queensland.<\/p>\n<p>Sellers now bear the obligation of providing buyers with a signed disclosure statement and prescribed documents before completing the contract.<\/p>\n<p>The Act grants buyers the right to terminate the contract if the information provided is inaccurate or incomplete on a material matter.<\/p>\n<p>While termination does not trigger statutory compensation, the seller is required to refund the deposit and interest.<\/p>\n<p>Limited exceptions to disclosure obligations exist for related buyers, government entities, and sales exceeding $10 million.<\/p>\n<p>The Act also allows for the electronic signing and delivery of disclosure documents, aligning with contemporary practices.<\/p>\n<h3>Leases &#8211; Lessor&#8217;s Consent to Assignment or Other Actions<\/h3>\n<p>Lessees are now subject to a more defined process when seeking lessor consent for various actions such as assignment, subleasing, or changes in the use of premises.<\/p>\n<p>The Act prohibits lessors from unreasonably withholding consent, providing a legal avenue for lessees to apply to the court for a decision if such withholding is deemed unjust (similar to the regime already applying to leases covered by the <a href=\"https:\/\/www.legislation.qld.gov.au\/view\/html\/inforce\/current\/act-1994-047\" target=\"_blank\" rel=\"noopener\">Retail Shop Leases Act<\/a>).<\/p>\n<p>Section 142 of the Act, a key provision in this regard, applies from the commencement of the Act and cannot be contracted out of.<\/p>\n<h3>Leases &#8211; Assignment of Lease &#8211; Enforceability of Covenants<\/h3>\n<p>The Act establishes a framework for the enforceability of covenants in lease assignments.<\/p>\n<p>Lease terms now bind assignees to the extent the lessee was <a href=\"https:\/\/www.abkj.com.au\/articles\/assignment-of-a-lease-changes\/\">before the assignment,<\/a> subject to lease provisions or written agreements.<\/p>\n<h3>Leases &#8211; Release of Previous Assignor on Subsequent Assignment<\/h3>\n<p>A novel provision in the Act stipulates that a lessee and guarantor are released from liability for breaches by a subsequent assignee.<\/p>\n<p>However, this provision applies exclusively to leases entered into after the commencement of the Act.<\/p>\n<h3>Trusts and the Rule Against Perpetuities<\/h3>\n<p>Beyond leases and sale transactions, the Act introduces a significant transformation in trust regulations.<\/p>\n<p>The conventional rule against perpetuities, mandating property interests to be established within 21 years after an individual&#8217;s death, has been replaced.<\/p>\n<p>Instead, the Act introduces a fixed 125-year period from the trust&#8217;s initiation, offering enhanced flexibility and enabling longer-term trust strategies.<\/p>\n<p>Existing trusts can transition to this new rule by adjusting the vesting date or creating a new legal document with the unanimous beneficiary agreement.<\/p>\n<p>Stakeholders, however, are cautioned about potential tax and duty implications associated with altering existing trust arrangements.<\/p>\n<h2>Conclusion<\/h2>\n<p>The Property Law Act 2023 represents a noteworthy shift in Queensland&#8217;s property laws. Its multifaceted impact on sale transactions, leases, and trust regulations necessitates a proactive approach from stakeholders.<\/p>\n<p>As we await the commencement date, we encourage clients and stakeholders to stay informed and <a href=\"https:\/\/www.abkj.com.au\/contact-us.html\">seek expert advice<\/a> as we prepare for the changes in Queensland&#8217;s property law landscape.<\/p>\n<h3>Contact Us<\/h3>\n<p>If you need assistance with a legal matter about <a href=\"https:\/\/www.abkj.com.au\/gold-coast-property-lawyers.html\">property law<\/a>, please contact the <a href=\"https:\/\/www.abkj.com.au\/\">Gold Coast lawyers<\/a> at ABKJ Lawyers on (07) 5532 3199 or <a href=\"https:\/\/www.abkj.com.au\/contact-us.html\">contact us<\/a>.<\/p>\n<h2>Frequently Asked Questions<\/h2>\n<h3 class=\"p1\"><b>1. What is the Property Law Act 2023 intended to do?<\/b><\/h3>\n<p class=\"p1\">The Act is intended to replace outdated legislation and simplify, streamline and modernise Queensland\u2019s property law framework.<\/p>\n<h3 class=\"p1\"><b>2. Had the Act commenced at the time this article was written?<\/b><\/h3>\n<p class=\"p1\">At the time of writing, the Act had passed Parliament and received royal assent, but commencement was still awaiting official proclamation.<\/p>\n<h3 class=\"p1\"><b>3. What change does the Act make to property sale disclosure?<\/b><\/h3>\n<p class=\"p1\">It introduces a mandatory seller disclosure scheme for registered freehold lots, requiring signed disclosure statements and prescribed documents before the contract is completed.<\/p>\n<h3 class=\"p1\"><b>4. What rights do buyers have if disclosure is inaccurate or incomplete?<\/b><\/h3>\n<p class=\"p1\">Buyers may terminate the contract where the disclosure is inaccurate or incomplete on a material matter, and the seller must refund the deposit and interest.<\/p>\n<h3 class=\"p1\"><b>5. What lease changes are discussed in the article?<\/b><\/h3>\n<p class=\"p1\">The Act prevents lessors from unreasonably withholding consent, creates clearer rules around covenant enforceability on assignment and, for some leases, releases previous assignors and guarantors from liability for breaches by a later assignee.<\/p>\n<h3 class=\"p1\"><b>6. How does the Act change the rule against perpetuities for trusts?<\/b><\/h3>\n<p class=\"p1\">The traditional rule is replaced with a fixed 125-year period from the start of the trust, giving greater flexibility for long-term trust arrangements.<\/p>\n<p>&nbsp;<\/p>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>In a significant legislative move, the Property Law Act 2023 (The Act) has been approved by Queensland&#8217;s Parliament, marking a fundamental change in the state&#8217;s property laws. Replacing the 50-year-old Property Law Act 1974 (Qld), the Act will introduce substantial modifications aimed at simplifying, streamlining, and modernizing the existing legal framework. Although the Act passed through Parliament on 25 October 2023 and received royal assent on 2 November 2023, its commencement awaits an official proclamation. The anticipated delay in commencement is a strategic decision, allowing for extensive consultation, the formulation of new regulations, educational initiatives, and preparatory work by stakeholders&#8230; <a class=\"more-link\" href=\"https:\/\/www.abkj.com.au\/articles\/understanding-the-property-law-act-2023\/\">Continue Reading<\/a><!-- AddThis Advanced Settings generic via filter on wp_trim_excerpt --><!-- AddThis Share Buttons generic via filter on wp_trim_excerpt --><\/p>\n","protected":false},"author":1,"featured_media":1238,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-1237","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-law"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Understanding the QLD Property Law Act 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