Peak body says bill was "prematurely" introduced into Parliament
The Real Estate Institute of Queensland has expressed disappointment that the Property Law Bill has been “prematurely” introduced into Parliament while REIQ feels there are still “material matters to be worked through.”
The bill seeks to implement a formal seller disclosure regime in Queensland. REIQ CEO Antonia Mercorella said that while REIQ supported the introduction of such a regime, that support was subject to the establishment of appropriate disclosure parameters and reasonable costs and accessibility to information about disclosure requirements.
REIQ has raised several concerns about the proposed legislation, including:
- The bill contains “impractical and unnecessarily complex” requirements for the provision of disclosure statements at auctions
- The reintroduction of Community Management Statement (CMS) disclosures when selling lots in a Community Titles Scheme, which REIQ said is “counter-productive and regressive”
- Ambiguity about the circumstances giving rise to buyer termination rights
- “Onerous” obligations for sellers to disclose and describe unregistered encumbrances to buyers
- Yet-to-be-determined flood-related disclosures and warnings
“We recognise the benefits associated with a single statutory disclosure regime ensuring all buyers have access to appropriate information to make informed decisions when buying property in Queensland, but this must be balanced with relevant and clearly defined disclosure requirements,” Mercorella said. “We are the peak body for real estate professionals in Queensland, with an unparalleled understanding of the way real estate transactions are facilitated in this state, so it’s alarming that the proposed legislation has been introduced into Parliament while we are still in the process of working through key stakeholder consultation.”
Among other things, Mercorella said REIQ was concerned about the bill’s proposal to require that disclosure documents be provided in different ways depending on whether a bidder arrived before or just after the commencement of an auction.
“The proposed requirements are unnecessarily complicated and demonstrate a lack of understanding of the principles of an auction sale,” she said.
She also said the bill would take a regressive step by reintroducing the requirement to provide a CMS in connection with the sale of a lot in a Community Titles Scheme.
“It is disappointing to see a proposal to reintroduce a past failed legislative measure,” Mercorella said. “In some instances, a CMS can be complex and voluminous, and research has shown that consumers are often overwhelmed by too much paperwork and the information is therefore largely ignored.”
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Mercorella also said the bill was ambiguous on matters that could give rise to potential termination rights.
“Queensland has a concerning history of real estate legislation leaving too much room for interpretation,” she said. “We only have to look at the Property Agents and Motor Dealers Act – now repealed – to see the significant amount of disputes and litigation that arose from poorly drafted legislation.”
Mercorella said that REIQ was also disappointed at the apparent lack of planned infrastructure and resources to support sellers and ensure they see equal accessibility and reasonable costs to access information that would be required to comply with the disclosure regime.
“If you are going to take the significant step of introducing a formal disclosure regime into Queensland, it’s essential that there are appropriate infrastructures in place to support it,” she said.
She said that while REIQ had provided input on the bill and consultation about property disclosure had been ongoing for many years, some material concerns were still outstanding, including flood-related disclosures.
“As the state peak body for real estate, we know that the wrong disclosure regime will add unnecessary expense and delays to the selling and buying process for Queenslanders,” Mercorella said. “Given the significance of real estate to the Queensland economy and the housing crisis we are facing, this is simply too critical an issue to rush this process through at the last minute.”
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