Latest news with #propertylawyers

News.com.au

‘Minefield': Property boss slams massive industry change

Queensland's new seller disclosure laws have been slammed as a legal minefield leaving vendors exposed to financial risk, with a top agency principal warning of failed deals and last-minute fallout. Michael Kollosche, managing director of leading Gold Coast firm Kollosche, said the sweeping reforms — the most significant overhaul of the state's property law in 50 years — were introduced without adequate industry consultation and had created greater risks and responsibilities for sellers, agents and lawyers. He said the changes were a 'minefield for sellers, agents and property lawyers'. 'If a seller fails to attach even one prescribed document, buyers can effectively pull out on a technicality right up to settlement, even if they are not prejudiced,' Mr Kollosche said. 'That is completely uncommercial for a seller who is also a client and deserves reciprocal protection.' Effective August 1, the new Property Law Act 2023 requires sellers to provide a completed and signed Seller Disclosure Statement, known as Form 2, plus a suite of prescribed documents including title searches, planning certificates, and environmental notices before a buyer signs a contract. Failure to comply gives buyers the right to terminate up to the day of settlement. Mr Kollosche warned the reforms opened the door to 'opportunistic lawyers' deliberately combing disclosure statements to find ways to kill deals. Adding to sellers' exposure, agents can still claim commission even if a buyer exits a contract due to a disclosure error, leaving the vendor out of pocket for both commission and marketing. 'People won't stop buying and selling,' Mr Kollosche said. 'But we are likely to see uncertainty and frustration in the short term with a lot of unnecessary litigation and harm to consumers, unless the gaps are identified and reforms are implemented quickly.' Despite eight years of development, he said the laws fell short due to a lack of consultation with experienced professionals. 'It's perplexing that such sweeping changes could roll out without proper input from senior agents who work in this space every day,' he said. 'An hour or two in a room with a few experienced agents would have pointed out all of the pitfalls.' The state government said the new regime brings Queensland in line with NSW and Victoria, and aims to improve buyer protection by increasing transparency and reducing legal grey areas that have led to contract collapses. Attorney-General and Minister for Justice Deb Frecklington urged all parties to familiarise themselves with the changes. 'Purchasing a property is a major financial decision … It's crucial for sellers to be aware of their disclosure obligations under these new laws, and for real estate agents and legal professionals to understand the changes as well,' she said. The new laws require disclosure of zoning, rates and water charges, heritage or tree orders, government notices, and owner-builder work in the past six years. But notable omissions remain, including structural defects, pest infestations, asbestos, and flood history — with experts warning the principle of 'buyer beware' still applies. How first-home buyers can 'turbocharge' their chances Real Estate Institute of Queensland CEO Antonia Mercorella said while the reforms enhanced consumer protection, the onus remained on buyers to conduct their own due diligence. Brisbane buyers agent Melinda Jennison said it was a missed opportunity to mandate disclosure of past building and pest defects or unapproved works. 'It would have been great if sellers were required to disclose any uncertified or unapproved building work … and any previous building or pest defects, even if those issues have since been addressed,' she said. Settle Easy CEO Sam Almaliki said the reforms were a long-overdue update to outdated laws. 'The market has become more complex, with a sharp rise in off-the-plan developments, interstate buyers, and digital contracts,' he said. 'Consumer protection was at the heart of this reform,' he said, 'but grey areas remain.'