Queensland’s new Property Law Act: a quick snapshot of some key items

Today (1 August 2025) marks a significant change in Queensland’s property law landscape, with the commencement of the Property Law Act 2023 (Qld) (the New Act). The New Act introduces significant reforms for property law in Queensland, with particular impacts on leasing and capital transactions in the State.

The commencement has been a long time coming, so we thought worth a quick refresher on some of the key changes from the existing regime to be aware of for leasing and sale transactions moving forward.

What are some of the key impacts on sales?

As a general comment, the changes are largely ‘buyer-friendly’.

Some key changes to be aware of from a seller perspective:

(a) New seller disclosure regime – Part 7 Division 4 (ss95-107)

• New mandatory seller disclosure requirements apply to contracts and options entered into from 1 August 2025, unless an exception applies.
  
  
• The seller must give the buyer ‘disclosure documents’ (being a seller disclosure statement in the prescribed form and prescribed certificates listed in the Property Law Regulation 2024) before the buyer signs the contract or option, as applicable.

Note: Disclosure must be accurate at the time it is given and the buyer may have termination rights where there has been a non-compliance. Care should be taken to ensure that provided searches are appropriately current when disclosure is made.

• There are a number of exceptions to the requirements. One key exception exists where the sale price is over the amount prescribed by regulation or otherwise $10 million (including GST) and the buyer waives compliance with the disclosure requirements before signing the contract or option, as applicable.

Note: This is NOT an automatic exemption – the waiver needs to be obtained before the buyer signs even where the value threshold is met.

• There was already a level of seller disclosure in Queensland for the sale of a lot or a proposed lot in a CTS and a proposed lot under the Land Sales Act 1984 (Qld). This new disclosure regime only applies to lots under the Land Title Act 1994 (Qld) and the disclosure statement captures both CTS and non-CTS lots. The regime does not apply to proposed lots under the Body Corporate and Community Management Act 1997 (Qld) or the Land Sales Act 1984 (Qld) where existing requirements will continue to apply.

(b) Application of seller disclosure regime to options (particularly for nominees) – Part 7 Division 4 (ss95-107)

• The new disclosure regime applies to contracts and options (i.e. call option, put option and put and call option).
  
  
• The regime provides a carve out to further disclosure where a grantee of an option was given disclosure documents before signing the option and then exercises the option / enters into the contract (i.e. no fresh disclosure needed at the time of exercise of the option).

Note: The carve-out does not assist where a nominee is appointed. If a third party is nominated to exercise an option, the grantor must give disclosure documents to the nominee before the exercise of the option.  The carve-out may also not assist where the disclosure requirements were waived (rather than disclosure being given) for the option itself. Accordingly, consideration should be given to including broad waivers extending to the option and the contract or alternatively, to providing disclosure documents rather than relying on waivers.

• Under the transitional provisions, the seller disclosure requirements apply in relation to a contract arising from the exercise of an option only if the option is granted after commencement (s251(2)).

Note: Careful consideration is required for option documents which have been signed but which provide that the grant of the option itself remains conditional – additional disclosures may be required in that situation.

What are some of the key impacts on leasing?

As a general comment, the changes are largely ‘tenant-friendly’.

Some key changes to be aware of from a landlord perspective:

(a) Consent to tenant actions (including assignment and works) – s142

• The landlord must not unreasonably withhold its consent, and a new statutory process applies, where the lease requires the tenant to obtain the landlord’s consent to:
  • any assignment, subletting or parting with possession
    
  • a change of use
  • creating a mortgage over the tenant’s interest in the land
  • any alterations or works.

Note: The application of these requirements is limited to situations where the lease requires landlord consent (i.e. no application where actions are prohibited).

• Under the new statutory process, the landlord must give a ‘decision notice’ within one month (unless the parties agree to extend during that period) after receiving full particulars of the tenant’s proposal (noting that if the landlord considers the information given to be insufficient to enable it to make a decision then it can require further information from the tenant).
  
  
• If the landlord gives consent, the ‘decision notice’ must state any conditions to the consent, giving reasons.
  
  
• A tenant can apply to the Supreme Court for orders if no decision notice is given, or if it believes consent is unreasonably withheld or a condition attached to the landlord’s consent is unreasonable, unnecessary or onerous.

Note: On its face the basis for challenge is broader than the basis on which consent can be withheld – with a tenant able to challenge ‘onerous’ provisions even if reasonable and necessary – but it seems unlikely that the intention was to allow a reasonable and necessary condition to be challenged in this way.

• From 1 August 2025, the provisions will apply to all relevant tenant proposals, regardless of when the lease was entered into.

(b) Release of subsequent assignee and guarantor following lease assignment - s144

• A new section regarding subsequent assignments alters the common law. If the tenant assigns the lease to an assignee and, after the assignment, the assignee assigns to a subsequent assignee, then the tenant and any guarantor of the tenant are released from liability to the landlord for a breach of the lease by the subsequent assignee. This means that the original tenant (and guarantor) remains liable after the first assignment, but is released following any subsequent assignment.
  
  
• The parties cannot contract out of this release, as it applies despite any agreement to the contrary.

Note: Careful consideration will be needed in respect of provisions (and consents) on assignment by tenants, including assignments to related bodies corporate.  In particular, landlords will need to consider requiring guarantees from new guarantors or other security being provided by the assignee as a condition of assignment.

• This section will apply only to leases entered into after 1 August 2025, and so it will not have retrospective effect to leases already on foot.

(c) Relief provisions and processes – forfeiture and exercise of options – Part 9 Division 5 (ss149-167)

• A statutory process will apply to a landlord exercising a right to re-enter for breach and where the landlord wishes to refuse to renew, extend the term of, or sell the reversion of, a lease (including where the conditions of that right are not met).
  
  
• A landlord must give the tenant a notice in the approved form and also give a copy to each ‘designated person’ whose name and address is known to the landlord. A failure by the landlord to give a copy of a notice to a designated person does not prevent the landlord from exercising its re-entry and refusal rights.  However, each designated person may apply to the court for relief against the forfeiture or refusal.

Note: Though relief against forfeiture and loss of a tenant’s option provisions are nothing new, giving standing to ‘designated persons’ to apply for relief is a significant change from the previous position.

• Before a landlord forfeits a lease, the ‘notice to remedy breach’ must include a reasonable period within which the tenant is required to remedy the breach and/or pay reasonable compensation.
  
  
• There is a statutory overlay to considering what is a ‘reasonable period’ having regard to:
  • the nature and extent of the breach
  • the nature of the thing the tenant must do or stop doing to remedy the breach.
• Before a landlord refuses to renew, extend the term of, or sell the reversion of, a lease, a ‘breach notice’ must be given and the timing will depend on whether the breach relied on happened before, or after, the tenant gave its notice exercising the option.

Note: This regime expressly applies to give the tenant protection against losing an option right due to failing to comply with a ‘formal requirement’ regarding exercise of the notice.  A ‘formal requirement’ includes a requirement about the form of the notice or the way the notice is given, but does not include a requirement about the period within which the notice is to be given.

• The parties cannot contract out of these requirements, and so they apply despite any agreement to the contrary.
  
  
• From 1 August 2025, the provisions will apply to all leases, regardless of when the lease was entered into.

What does this mean for you?

In short, you need to have the New Act front of mind for real estate deals (and management of real estate assets) moving forward – but particularly where you are a seller or landlord.

If you would like assistance navigating the New Act please feel free to reach out to our team.