Recently, we heard from Rebecca Petroff from Sunstate Conveyancing and she explained the changes brought in earlier this year regarding smoke alarm compliancy.
According to Rebecca, “Currently under the contract the seller must disclose if the smoke alarms are complying with the Smoke Alarm Requirement Provision.
If the box is ticked not compliant, the seller must install correct smoke alarms to be compliant prior to settlement. Failing this the buyer is entitled to an adjustment at settlement of 0.15% of the purchase price. Under condition 7.8 The buyer must claim this in writing on or before settlement and this is their only remedy.
To prove the property is compliant the obligation is on the buyer. The buyer may request a compliance certificate or complete an inspection. The seller does not legally have to provide a compliance certificate however, if it is not disclosed correctly on the contract, it could become a non-disclosure issue, giving your buyer further rights.”
It is so important your agent knows exactly how to complete an REIQ Contract correctly to ensure compliance with all legislation…remember, EXPERIENCE COUNTS!
Rebecca has also advised there will be 3 legislation changes next year:
1. eConveyancing mandate – set to occur on 20/2/2023
Most people are not aware that now-a-days a large number of settlements occur electronically using the PEXA (Property Exchange Australia) system however, there are still some solicitors/conveyancers that prefer to manually settle a property.
PEXA provides a number of services including:
- preparation of electronic dealings and verification of lodgement acceptability
- electronic settlement of real property transactions including payment of settlement monies, duties, taxes and any other disbursements, and
- electronic lodgement of dealings to the appropriate Land Registry.
What this legislation change means is that all settlements will be set to occur electronically unless there is an exception. The rules around the exceptions will be advised closer to the date.
2. Seller disclosure to buyer
The second legislation change is around the seller disclosure to the buyer. There is a draft of this document floating around but it has not been finalised.
Queensland Law Society are currently taking feedback around this document however have advised that, in most cases, this form will need to be created by a Law Firm and searches will need to be conducted for this. We have provided a link to the draft form HERE.
Solicitors/conveyancers will need to work with the relevant councils to make this as seamless as possible, with expected time frames from councils so they can be complete for sellers. The buyer will have termination and compensation rights for incorrectly completed statements.
3. New version of the Property Occupations Act
The third change is a full Property Law Bill 2022 which will update the current 1974 version. If you are interested in reading the full Draft Act, click HERE
Remember, if you need any help or advice, we are just a phone call away.
All the best, Simon.
Source: Rebecca Petroff, Sunstate Conveyancing