What Developers Need to Know About the Property Law Act 2023 (Qld) in 2026

Introduction

The Property Law Act 2023 (Qld) (‘the Act’) took effect on 1 August 2025, introducing significant changes to property transactions and Queensland planning rules. These reforms now require all property developers—including those undertaking site acquisition and due diligence for renewable energy projects such as a solar farm or wind farm—to meet mandatory seller disclosure obligations and adapt to updated easement laws.

Development companies must update their contracts to manage the reduced limitation periods and altered dispute resolution processes that currently apply. This article explains the updated property laws for developers so you can maintain compliance while working with local government to manage the social impacts and community benefits of your wind and solar projects.

Interactive Tool: Check Your Compliance With New QLD Seller Disclosure & Contract Rules

Understanding the New Seller Disclosure Scheme for Property Developers

What the New Disclosure Obligations Mean for Your Development Projects

Under the Property Law Act 2023 (Qld), which came into effect on 1 August 2025, developers are now subject to Queensland’s seller disclosure scheme, requiring them to provide a comprehensive disclosure package to a buyer before they sign a contract of sale. This reform shifts responsibility to the seller, requiring upfront transparency in property transactions across Queensland.

The mandatory disclosure documents include a Form 2 seller disclosure statement and a set of prescribed certificates. The disclosure statement must be accurately completed and provide details on various matters, including:

• Unregistered encumbrances affecting the property;
• Current zoning information;
• Whether the property is listed on the environmental management or contaminated land register;
• Any neighbourhood disputes or transport infrastructure proposals; and
• Council rates and water charges.

In addition to the statement, developers must provide all applicable prescribed certificates. These documents typically include a current title search, a copy of the registered plan, and a body corporate certificate if the property is part of a community titles scheme, a key component of strata and body corporate law.

Failing to Comply with the Seller Disclosure Requirements

The consequences for failing to meet the new disclosure obligations are significant. A buyer has the right to terminate the contract at any time before settlement if a developer does not provide the required disclosure statement or prescribed certificates.

Termination rights also arise if the information provided is inaccurate or incomplete regarding a material matter affecting the property. For a buyer to exercise this right, they must demonstrate that:

• They were not aware of the correct information when they signed the contract; and
• They would not have signed the contract if they had known the true state of affairs.

If a contract is terminated on these grounds, the buyer is entitled to a full refund of any money paid, including the deposit. Furthermore, the legislation does not define a ‘material matter’, suggesting a buyer-friendly interpretation may be applied in disputes.

Exemptions to the New Disclosure Laws for Specific Buyers

The Property Law Act 2023 (Qld) includes several specific exemptions from the seller disclosure requirements. These situations often involve sophisticated buyers or transactions where the need for statutory disclosure is reduced.

Developers are not required to provide disclosure documents in certain circumstances, as follows:

• High-value sales: Sales where the purchase price is over $10 million (including GST), provided the buyer gives a waiver notice before signing the contract (this exemption is not automatic and requires the buyer’s active waiver).
• Listed corporations: Transactions where the buyer is a listed corporation or a subsidiary of one.
• Related parties: Sales between related parties, such as family members, if the buyer provides a waiver.
• Government bodies: Contracts with government bodies, including the state, commonwealth, or a local government authority.
• Co-owners: Sales between co-owners of a property.

Development Contract Considerations & Option Agreements

How the New Laws Impact Option Deeds & Nominee Provisions

The seller disclosure regime under the Act extends to option agreements, creating specific obligations for developers. When an option deed is created, the seller must provide the required disclosure statement and prescribed certificates to the potential buyer before the option is signed.

A key detail involves nominee provisions, which trigger a “double disclosure” requirement as follows:

• Original grantee: fresh disclosure is not needed if they exercise the option; and
• New party nominated: the developer must provide a complete set of disclosure documents to the nominee before the option can be exercised.

As a result, option deeds must be structured to accommodate this process to ensure a binding contract can be formed with the nominated party.

The Reduction of the Deed Limitation Period & Its Effect on Latent Defects

A significant change for developers is the reduction of the statutory limitation period for actions commenced under a deed. The the Act shortens this period from 12 years to six years, aligning it with the limitation period for ordinary contracts. This reform applies to all deeds entered into from 1 August 2025.

This change has a direct effect on managing risks associated with latent defects in construction projects. Previously, developers and principals relied on the longer 12-year period to identify and bring claims for defects that may not become apparent for many years. To secure a longer timeframe for pursuing breach of contract claims, the drafting of development and construction contracts must now include express terms that specify an extended period.

Off-the-Plan Sales & Existing Disclosure Obligations

The new seller disclosure scheme does not apply to all property transactions in Queensland. Specifically, the sale of ‘proposed lots’ off-the-plan is exempt from the requirements of the Act.

Disclosure obligations for these developments continue to be governed by existing legislation, including:

• Land Sales Act 1984 (Qld); and
• Body Corporate and Community Management Act 1997 (Qld).

Furthermore, developers of community title schemes should be aware that under Section 213 of Body Corporate and Community Management Act 1997 (Qld), they are now required to provide a copy of any applicable building management statement as part of their disclosure.

Easement Reforms & Electronic Conveyancing Impacts in Queensland

Changes to Property Easements & Covenants for Successors in Title

Under the Act, both positive and negative covenants within registered easements are now binding on successors in title. This change provides greater certainty for developers, as it ensures that obligations associated with an easement automatically transfer to future owners of the property.

Previously, there could be ambiguity about whether certain obligations, such as contributing to the maintenance of a shared accessway, would continue after a property was sold. Now, these terms are enforceable against new owners unless the covenant is explicitly stated to be personal to the original parties. Ultimately, this reform alters how developers must manage and document long-term property interests and responsibilities.

The Formal Recognition of Electronic Conveyancing & Settlement Extensions

The the Act formally recognises electronic conveyancing, modernising the settlement process for property transactions in Queensland. In addition, this includes the introduction of a new Form 7 Lease, which is designed to facilitate the electronic lodgement of leases.

Furthermore, the legislation introduces new statutory rights for extending settlement dates. These updates provide more predictability and flexibility for developers managing transactions, with key changes as follows:

• Non-business days: if a settlement is scheduled for a day that is not a business day, it automatically moves to the next business day; and
• Adverse events: parties are allowed to extend settlement for significant adverse events, such as an inoperative computer system at a bank, the land registry, or an electronic lodgement network operator.

Key Lease Changes for Commercial Property Owners & Developers

New Statutory Processes for Landlord Consent & Tenant Actions

The the Act establishes a new statutory process when a tenant seeks a landlord’s consent for certain actions. This applies where a lease requires consent for matters including:

• assigning the lease;
• subletting;
• changing the property’s use; or
• making alterations.

Under these new rules, landlords in Queensland are obligated to act reasonably and are not permitted to unreasonably withhold their consent. Furthermore, a landlord must provide the tenant with a ‘decision notice’ within one month of receiving a request with all necessary details.

If the landlord approves the request, the notice must specify any conditions attached to the consent and provide reasons for them. However, should a landlord fail to provide a decision notice or if a tenant believes consent was unreasonably withheld, the tenant can apply to the Supreme Court for an order.

The Release of Original Tenants & Guarantors Upon Subsequent Assignment

A significant change for commercial leases in Queensland is the automatic release of original tenants and their guarantors from future liability following a subsequent lease assignment. This rule applies to leases entered into after 1 August 2025.

If a tenant assigns their lease to a new party, and that new party later assigns the lease to someone else, the original tenant and their guarantor are released from liability for any breaches committed by the subsequent assignee. This provision alters the common law position and cannot be contracted out of, meaning it applies despite any agreement to the contrary in the lease.

As a result, landlords and developers must now consider this when consenting to assignments. They may need to secure new guarantees or other forms of security from the new assignee.

Dispute Resolution & Lessons from the First Year of Implementation

Adapting to Altered Dispute Resolution Processes & Mediation

The Act has changed how property disputes are handled, placing a greater emphasis on alternative dispute resolution. The new framework encourages mediation as a way for developers to resolve disagreements more efficiently, as this approach is often faster and less expensive than traditional construction disputes and court litigation.

Consequently, parties may find they are required to attempt mediation before a matter can proceed to court. This shift aims to achieve quicker resolutions for property-related conflicts. In addition, the Act allows for adjustments to court procedures, potentially altering:

• how evidence is presented; and
• what parties need to prove during litigation.

Managing Increased Costs & Delays in the Current Property Market

the Act commenced on 1 August 2025, developers in Queensland have faced several practical challenges. One of the main impacts has been the rise in upfront costs associated with:

• preparing the comprehensive seller disclosure statement; and
• gathering the required prescribed certificates.

Furthermore, development projects have experienced potential delays during the pre-contract phase. With more information available upfront, buyers are conducting more thorough reviews, leading to increased negotiations as parties work to allocate risks identified in the disclosure documents. As a result, it has become essential for developers to factor in longer timeframes for due diligence and contract finalisation.

Conclusion

The Act has introduced substantial reforms affecting property developers in Queensland, including a mandatory seller disclosure scheme, new rules for leases and easements, and a reduced limitation period for deeds. These changes require developers to update their contracts and operational procedures to manage new risks and ensure compliance with the current legal framework.

To adapt to these updated property laws, it is important to seek specialised legal guidance. You should contact our property development lawyers at GRM LAW to assist with reviewing your contracts and processes to align with the legislative changes, helping to protect your investments and maintain project momentum.

Frequently Asked Questions

Disclaimer: This is general information only and is not legal advice. For advice on your circumstances, contact GRM LAW.