The New Off-The-Plan Contract Requirements in Queensland

Off-the-Plan Contracts in Queensland: Updated Disclosure Duties and Buyer Protections

Recently, amendments to Queensland’s Land Sales Act 1984 (Qld), the Body Corporate and Community Management Act 1997 (Qld) and associated regulations have introduced strengthened disclosure obligations for developers selling off-the-plan. These changes were designed to provide purchasers with greater transparency, updated remedies and enhanced consumer protections.

Disclosure Statement

A Disclosure Statement in the prescribed form must be provided to a purchaser before they sign an off-the-plan contract. The Disclosure Statement must include:

• a copy of the proposed plan prepared by a cadastral surveyor showing:
  • the proposed lot number and area and sufficient detail to identify its location;
  • the site of any proposed easement or covenant affecting the lot; and
  • any proposed exclusive use areas (for community titles schemes).
• any proposed Schedule of Finishes.
• any proposed community management statement (CMS).
• for lots in proposed community titles schemes:
  • the draft survey plan; and
  • the draft by-laws.
• for layered schemes:
  • the draft scheme plan and draft CMS for each layer.

Under the Land Sales Act, purchasers may terminate the contract if the developer fails to provide a compliant disclosure statement or provides misleading or incomplete disclosure.

Cooling-off Period

Queensland maintains a statutory 5-business-day cooling-off period for residential contracts under the Property Occupations Act 2014 (Qld), which also applies to most off-the-plan sales.

Notification of Changes

Developments often change during construction. Queensland law requires sellers to notify buyers of “material changes”, including changes that adversely affect the buyer’s use, value or enjoyment of the lot, such as changes to:

• lot area;
• location of easements;
• by-laws;
• exclusive use areas;
• finishes or fixtures;
• the CMS or development scheme.

Buyers may terminate if materially prejudiced by the change.

Settlement Notice Period

Developers must provide written notice that the plan has registered and provide copies of the registered documents. Off-the-plan contracts commonly require settlement to occur within 14 days of registration unless otherwise stated.

Termination or Compensation

A purchaser may terminate if they are materially prejudiced by a significant change. Compensation may also be available where expressly provided in the contract.

Deposit Requirements

Deposits and instalments must be held in trust by a law practice or agent under the Agents Financial Administration Act 2014 (Qld) and cannot be released before settlement.

Sunset Clauses

Developers must comply with strict requirements when relying on sunset dates. Buyers may terminate if registration does not occur by the sunset date. Certain provisions restrict a developer’s ability to terminate without consent.

If you need clear guidance on QLD property dealings, our Brisbane conveyancing team is available to help.