On 1 October 2022, numerous changes to Queensland residential tenancy laws commenced under the Housing Legislation Amendment Act 2021 (amending the law under the Residential Tenancies and Rooming Accommodation Act 2008). These changes were introduced to better regulate leased residential properties across the State and increase obligations of landlords in certain respects. They have been described by Minister for Communities and Housing as “the final step that enlivens to the important Stage 1 Rental Law Reforms passed by the Parliament in 2021”.[1] 

For tenants, the changes mean increased protections in ending tenancies, and it is now easier for tenants to keep pets. For landlords, increased repair and maintenance obligations have been introduced which align with the staggered introduction of Minimum Housing Standards from 1 September 2023 discussed further below. 

Minimum Housing Standards 

The Minimum Housing Standards (‘Standards’) will apply to new leases entered into from 1 September 2023 and all tenancies from 1 September 2024. According to Minister Enoch, the Standards will “help to ensure all Queensland rental properties meet basic safety, security, and functionality standards”[2]. The Standards will require tenanted premises to be, amongst other things: 

• weatherproof and structurally sound; and
• free from pests, damp and mould. 

Fixtures and fittings of the premises must also be in good repair. 

Under the commenced changes, tenants must return the entry condition report for the premises within 7 days of occupying the premises, and can authorise emergency repairs up to the equivalent of four weeks’ rent. 

If you own a residential investment property that is tenanted, it is important you are aware of these changes and those associated with the upcoming implementation next year. Now is the time to plan ahead for any work that may be needed to comply with the Standards and the legislation by 1 September 2023. 

If you own a property in a community titles scheme, you should aim to clarify your personal obligations as owner with the body corporate prior to the Standards being enforced in September 2023. The new regulations may cultivate disputes in body corporate schemes as to who is responsible for what – the owner or the body corporate, and therefore it is important owners think ahead.

Ending tenancies

From 1 October 2022, landlords are no longer able to end tenancies ‘without grounds’. However, tenants are able to end tenancies in this manner. Tenants can also end tenancies in situations where the property is not in good repair or fails to meet the Standards. 

There will be new grounds for property owners to end tenancies, including ending a fixed term agreement: 

• for undertaking significant repair or renovation;
• for change of use; or
• in preparation for sale of the property. 

However, where there has been a serious breach of a lease by a tenant, landlords will have to seek an order from QCAT to terminate the tenancy. 

Pets 

The changes will make it easier for tenants to keep pets. The tenant can seek the owner’s consent, and owners can only refuse a request to keep a pet on identified reasonable grounds. For example, if keeping the pet would be in breach of the law or applicable by-laws. Consent may be subject to conditions such as only keeping the pet outside. If property owners do not respond to requests within 14 days, consent will be implied. 

If you would like further guidance around the reforms and their effect on your personal circumstances, please contact us by email or phone 07 3220 1144. Likewise, if you require assistance with another property-related matter, we can certainly assist.

[1] https://statements.qld.gov.au/statements/94557.

[2] https://statements.qld.gov.au/statements/94557.

As part of the Queensland Government’s Property Law Review currently underway, two online surveys were released (one for consumers and one for developers) regarding issues around residential off-the-plan contracts. Feedback received from those surveyed will be reviewed and assessed over the coming months.

In an effort to respond to concerns of buyers of “off the plan” properties, particularly given the rapid rate of migration of interstate residents to Queensland during the peak of Covid-19, the Government identified two key issues for public feedback: 

1. The use of sunset clauses by developers (in their capacity as seller) to terminate the contract; and
2. Early release of deposits from a trust account to developers (sellers) prior to settlement, termination or finalisation of the contract. 

To provide context, an ‘off the plan’ residential property sales contract typically refers to a contract for a proposed lot, such as: 

1. a vacant block of land in a new housing estate; or
2. a proposed lot to be included in a community titles scheme, such as an ‘under construction’ apartment in a multi-storey building. 

An ‘off the plan’ contract should contain a ‘sunset clause’ which is a term in the contract allowing a buyer and/or seller to terminate the contract if the contract does not settle by a specified date. 

For a vacant block of land, section 14(1) of the Land Sales Act 1984 (Qld) states that the seller of a proposed lot must settle the contract for the sale of the lot not later than 18 months after the buyer enters into the contract for the sale of the lot. 

For a proposed lot in a community titles scheme, the Body Corporate and Community Management Act 1997 (Qld) allows for settlement to occur up to 5.5 years from the date of the contract.

Whilst those dates are the maximum, they can be reduced under the terms of a particular contract if the buyer and seller agree to do so. 

In ‘off the plan’ contracts, settlement can only occur once the proposed lot is registered. Typically, settlement will occur 14 or 21 days from registration of the plan. 

Given the technical considerations and complex requirements in property law, the Government is consulting with community and industry stakeholders to ensure solutions developed as part of the Property Law Review address relevant issues at hand, without producing unintended consequences. 

If you are considering purchasing ‘off the plan’, require a contract review or would like to know more about purchasing registered or unregistered property, please do not hesitate to contact us at email or call 07 3220 1144.